As a homeowner there’s a lot to think about when considering your next move. For example, is now the right time to buy a new home? Or perhaps you’re better off staying put and renovating instead?
Things to consider
Here, we’re going to break down two of the most common dilemmas homeowners run into when considering their next move:
- Should I sell or simply renovate?
- Should I buy first or sell first?
Before exploring options beyond your front yard, it may be worthwhile considering whether making changes to your current home might make you just as happy or solve your space requirements. The grass isn’t always greener. There are a number of factors you may wish to consider before deciding whether to sell or renovate, including what makes financial sense to you, timing considerations and your lifestyle.
If you sell, you might:
- Find a house better suited to your needs
- Avoid a potential renovation budget and timeline blow out
- Avoid the costs of temporarily relocating when it comes to renovating
If you renovate, you might:
- Continue to enjoy the location where you currently live
- Add value to your current home (although this will depend on a number of factors, including the cost of the renovation and market conditions)
- Avoid the stress of moving (although you may need to temporarily relocate) and having to sell or manage your current home
- Save on the additional costs of buying a new home – such as stamp duty, legal registration and real estate fees
What to consider:
In the end, whatever you decide will be based on your needs.
The potential benefits of either option listed above are just a few factors to consider. You could also get your home evaluated. This could help you draw up a renovation budget and timeline to compare the estimated costs of selling versus renovating.
If you decide to sell, it can be difficult to know whether to buy or sell first. On one hand, if you sell first you could use the proceeds of one home to fund the other, but you’ll also need somewhere to live in between. We have listed some factors you may wish to consider in deciding which option is most suitable for you.
If you buy first, you might:
- Do away with the hassle of renting in between
- Need to consider the financial implications, including whether you could cover two mortgages until you sell
- Maintain a foothold in the market, which may be beneficial if prices rise (but also risky if you need access to funds from a sale)
If you sell first, you might:
- Gain peace of mind knowing exactly how much you have to spend on your next home
- Avoid the pressure of needing to sell quickly (if you know you will to be able to access the funds from the sale)
- Be able to negotiate a longer settlement period to provide you with time to find your next home
- Need to consider alternative accommodation (i.e. renting if you can’t find your new home before settlement)
- Have to consider the impact a potential rise in property prices could have if there is a gap between sale and purchase
Everyone’s situation is different. There are many factors to consider, including some that may not have even occurred to you as yet.
That’s why we always suggest talking to an expert to work out the best option for you. We have a team of specialists who can work with you on scenarios such as these and more.
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