Deciding Whether to Buy a New Home or Renovate Your Existing Home

Deciding Whether to Buy a New Home or Renovate Your Existing Home is a decision that is rewarding and exciting especially if it is your first home.

When you have the need for a larger home, you may be struggling with whether or not to buy a new Australian home or undertake a renovation of your current home.

You can easily add a good percentage of square footage simply by renovating, but you may want to look around at the available real estate before deciding what to do.

There are a few things you need to research before making the decision to insure that you make the best choice for your family.

Square Footage Estimates

One of the first things you can do is estimate what you’ll pay for the additional square footage of a new home as compared to what you’ll pay to add additional square footage to your existing home.

In many instances, purchasing a new home costs more than renovating, but there are some cases where renovating will cause you to take out a hefty loan that ends up costing you  more in the long run than a new mortgage.

Have a contractor give you estimates on a renovation, and then have an Australia real estate agent show you new homes of the desired size. Do estimated calculations of what you’re paying per square foot to see which method of expanding is more cost efficient.

Competition and the Market

It’s important to know the current Australian real estate market and the current competition amongst contractors when choosing to buy or renovate. If the current real estate market is ideal for buyers, you may be better off buying.

Interest rates are probably low and there are more sellers than buyers, meaning you can get a good price. If it’s a seller’s market, you may want to consider renovating.

A good renovation can greatly affect your asking in your favour, so you may want to renovate until the market turns around and makes it worthwhile to buy.

Your Personal Preferences

The best way to tell if you need to renovate or buy is your personal preferences. If you really love your current home and the neighbour hood, then you’ll probably be happiest renovating.

If your current home was already a few years old when you purchased it, you may be ready for something new.

In order to determine the best choice for you and your family, have an Australian real estate agent show you some new properties and compare them to what you love and dislike about your current home.

Create a pro con list and use that to determine whether you should buy or renovate.

Western Australia

Richard Colum

Real Estate Colum Copyright © 2010 All Rights Reserved


One Response to “Deciding Whether to Buy a New Home or Renovate Your Existing Home”

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  1. Kerry Lea says:

    Hi Richard

    Good advise, there is so much to take into consideration and I like your idea of writing a pro and con list. Renovating does seem like the cheaper option but renovating costs can blow out.

    Before we moved into our current home we went through the stage of deciding whether to renovate or move. We ended moving and it was the right choice. We moved to a quieter area with more trees and fresher air and we love it.

    I suppose it depends how much you like the position of your current home and like you wrote the neighbours.

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