Should we renovate or sell our Brisbane family home in 2020?
In these uncertain times, how we use our homes has become incredibly important. How functional are our homes? How comfortable are they and how much do they cost to run? Never before have we had to juggle work, school, exercise and family commitments under the one roof. Our homes were not built for this kind of living and many families across Brisbane are in desperate need of more space.
5 reasons why Brisbane families are choosing to renovate rather than sell
1 – Renovation provides an opportunity for smarter, more functional use of your space.
What are your motivations for renovating or selling?
New research from Westpac indicates that COVID-19 restrictions have significantly impacted what Australian families want out of their homes, with spacious living being top of the agenda. If it is more space that you are looking for, then you may be able to reconfigure your home’s layout to free up more room, not to mention that older properties tend to have larger blocks. It’s equally important to make smart use of the space that is available to you. After all, more space that is not functional (that you may gain from buying a property) is not going to solve your family’s issues with space.
2 – Renovating lets you avoid the significant costs related to buying and selling property.
There are significant costs related to selling and buying and this money could be better spent on a renovation, meeting the lifestyle needs of your family.
A well-costed and well-managed renovation can convert a two-bedroom home into three-bedroom one or add that extra bathroom that a growing family needs for potentially a fraction of the cost of selling up and moving somewhere new.
Consider these costs associated with buying and selling…
Conveyancing ($1,000 – $2,000), agent fees (2 – 3% of the sale price), stamp duty (over $14,000 on a property worth $600,000), marketing (the sky’s the limit), loan application fees, lenders mortgage fees, property valuations, pest inspections and the list goes on. These expenses can add up quickly and $50,000 is not an unreasonable total cost.
Also, if you’re relying on the proceeds from the sale of your existing home to buy your next one, you may also need bridging finance, which can be pricey. There are also ‘hidden costs’ like hiring removalists, staging your home and cleaning or storing your possessions before you move into your new home.
3 – There is a lack of affordable housing available at the moment on the Brisbane property market.
Despite the pandemic, according to CoreLogic data, Brisbane house values are steady and the predicted 20 – 30% price fall that some economists had predicted now seems highly unlikely. Property values are higher than they were 12 months ago and the volume of high-intent buyer activity on realestate.com.au is 31.6% higher than this time last year. The number of properties listed for sale is down 13.8% on this time last year and it is this lack of good properties for sale, at a time when demand is high, that is driving the properties prices up. These prices are also being strengthened by the fact that the Brisbane property market has experienced more enquiries from interstate investors than we have for many years.
4 – Renovating lets you stay in the area you love.
There’s a reason why you are living where you are. You chose that area because you love it. It’s close to your work and the kid’s school. You love the local shops, cafes and parks. These are all good reasons to remain in the neighbourhood that you know and love. After all, we humans tend to be a sentimental lot and for most people, our homes are full of important family memories and milestones.
5 – Finding a new home that suits your family’s lifestyle can be a complex and time-consuming task.
This one needs little explanation. For most people who work fulltime, the thought of this task is daunting and often involves spending your precious spare time trawling through real estate websites, making and receiving calls and appointments with real estate agents, attending inspections and auctions, dealing with the constant disappointment of well lit, Photoshopped photos not representing a property truthfully and all of this while trying to making sure that these properties tick the boxes for your family’s needs.
It’s not all rainbows and unicorns…
But renovation is not all rainbows and unicorns. Here are 3 tips to keep in mind when choosing to renovate:
Choose a professional builder who specialises in this type of building.
To hand this type of specialist work over to a new home builder will be the biggest mistake you could make. You need a builder with an outstanding record at completing custom home renovations, one who has systems and procedures in place to deliver your home renovation on budget, on time and defect-free.
Choose a design and construct renovation builder rather than speaking with an architect or designer first.
This will ensure that your renovation will be designed to the actual build price, avoiding budget blowouts. It will also mean that you will have one company totally focussed and accountable for delivering your dream renovation.
It may seem obvious that you need to spend as little as you can now to add maximum value later. But when it comes to budgeting a renovation project, this is where many people come unstuck. A good rule of thumb is not to spend more than 15% of the total value of the property on renovating it. Most Valuers will not add more than this just because of a renovation. Obtaining a comprehensive Building Proposal from a Professional Builder as early in the process as possible may help to ensure you don’t start spending on an upgrade that won’t be viable.
A Clear Choice
It becomes easy to see why renovation tips the scales when it comes to choosing between renovating or selling. A renovation can improve the comfort of the home, improve the functionality of your home, lower energy costs by upgrading to more efficient appliances and increase the value of your home. Get your renovation underway today by downloading our free renovation guide – ‘5 Things You Should Know Before Renovating’ with all the critical questions to ask before selecting your builder so you can finish your project on time and on budget.