C&G's Guide to Renovate vs Selling

Tips & Advice

Should I stay or should I go? There are many factors to consider when making the decision to either renovate your home, or sell and move on. The most commonly asked question is, what will make me more money? But you also need to consider the needs of your loved ones, your work priorities, and what kind of lifestyle you want to lead. It’s not just a financial decision, but a personal one, too! In this C&G Blog, we’ll weigh up the pro’ and cons for both so that you can make the best decision for you.

Consider your equity

Updating your current kitchen, adding a second bathroom, or even just a fresh coat of paint can add significant market value to your home, but you must consider your equity first. If you have owned your property for a long period of time, you may have a good amount of equity that you could access to increase the market value of your home before putting it up for sale. If renovating means spending more than the equity of your home, then it might be too risky.

Calculate your budget

Depending on your equity, renovating might be a more budget-friendly option than buying a new house. Selling your home for the purpose of upgrading to a bigger space might require taking out a new loan or even refinancing. This will most likely depend on how old your current property is and the extent of the renovations required. Does your home need a fresh coat of paint, or an entire transformation? You’ll need to consider labour costs, permit costs, and even the possibility of having to temporarily relocate during the renovation. The more work that’s required means the higher risk you’re taking of overspending, ruining your chances of making enough of a profit to justify the renovation.

Timing is everything: is now a good time to sell?

Homeowners should always be keeping an eye on the housing market, but it’s especially important to do so if you’re considering making a move. While we don’t know what the future holds, we can certainly analyse trends and keep ourselves informed. Winter can be a very good time to sell, but is your suburb a well performing area? Who are the types of people buying in your neighbourhood: first time buyers? Families? What are they looking for in a home? Can you meet their expectations? If you don’t have the answers, then the answer might be that now isn’t the time to sell, and renovation is potentially the better investment.

Evaluate the risk

Of course you own your property, but you will still need to apply for council permits before undertaking renovations. You don’t want to pour time and money into plans and then find out at the eleventh hour that you aren’t permitted to actually do the work. Before you make any decisions, even if they’re just hypothetical, make sure you won’t have any roadblocks pop up along the way.

Whether you’re sure which way to go, or you’d like some expert guidance to help you make your decision, C&G can help. Contact the Bayside property experts today!