Is it time for a home upgrade? Whether your family is outgrowing your Sunshine Coast home or it’s time to find our forever home, we have the ultimate home upgrading guide just for you. With the property market not showing any signs of slowing down you might be wondering whether you should sell or renovate. Read on for all the answers you need..
How to know it’s time to upgrade
Do you love where you live, but not your house? Has work changed and your commute is longer now? Are your kids getting bigger and need their own rooms? Have you transitioned to working from home but you don’t have space for a separate office in your current home?
There are many reasons in life people decide their current home is not working for them anymore. Usually, you know it’s time to upgrade. But, exactly how to upgrade is where most Sunshine Coast homeowners get stuck.
Should I renovate?
Australians are a nation of renovators. We love a good reno before and after on social media or TV. But is it right for you? Before you jump on the reno bandwagon, it is worth considering the following questions.
- Do you have enough cash – or access to your current home’s equity – to cover the full cost of renovations as well as a good buffer for budget blow-outs?
- Can your family deal with months of renovations while living in the house? Or do you have somewhere to stay during major renovations?
- How quickly do you want to upgrade your home? Would it be better to sell up and buy so you can move right in? Or are you willing to take the time to renovate your current house for long-term gain?
There are many advantages to renovating your home to upgrade it including that it can be cheaper than buying a new house, you get to stay exactly where you are and it can increase the value of your home.
On the flipside, you should be wary of overcapitalising and going over budget as well as whether you can achieve your “dream home” by changing your current one.
The good news is that in this property market, your equity in your current home has likely increased and refinancing with a mortgage broker can be an effective solution to paying for renovations without the stress of selling and buying another property.
Should I buy and sell?
Renovations are not for everyone, or every house. Upgrading your home by selling it and buying a better one can sometimes be the smarter decision for Sunshine Coast homeowners. You’ve gone through the process of buying a house before so you know what to expect. You’ll know all the things to look out for when inspecting a property and making your offer. You know that getting pre-approval through a mortgage broker is the best way to confidently make the right offer.
When contemplating buying and selling in order to achieve your home upgrade, consider the following factors:
- Buying and selling includes packing and moving, however, some people prefer this to the prospect of messy and unpredictable renovations.
- Whereas renovating can suffer budget blowouts, buying and selling houses the costs are known. When working with an experienced mortgage broker, they will manage the housing finance for you!
- Finding the right property will take time and includes inspections, the offer process, as well as figuring out your finance options.
- Buying can be more expensive than renovating your current home, however it’s important to consider all the factors involved in both options before making a decision.
Did you know that there are many financing options available when trying to sell and buy houses at the same time?
Should I knock down and rebuild?
An alternative to renovating parts of your current home is a complete knock down and rebuild option. This is when you completely demolish your existing property and build a new one on the same land. Here’s a quick snapshot of things to keep in mind with this option:
- If you are in a good location, the land value will be higher than the value of your house on top of it. By rebuilding, you retain and increase the overall value by having a new house on the existing land.
- If your house needs major renovations to upgrade it, a knock down/rebuild can in fact be cheaper with the right builder.
- Similar to renovations, a full rebuild is going to take time and delays are common.
- You will need alternative accommodation while your current house is demolished and your new one is being built.
- Watch out for any local council approvals and pitfalls for rebuilding on your land.
If you think rebuilding will suit you, talking to a mortgage broker is a good first step to understanding finance options available to you before you start getting quotes.
How much should I spend on my home upgrade?
No matter what option you choose, financing your home upgrade is going to be a big consideration. If you are looking to renovate, you want to spend enough money for worthwhile improvement while avoiding overcapitalising. If you choose to buy and sell, you need to consider the market and whether you’ll be able to buy the right property after you sell your current home. If a knock down/rebuild is for you, you’ll need enough cash and a buffer just like you would with a reno.
Researching the property market is a good first step to understanding what you might get for your house if you sell it, and what the properties that suit your upgrade dreams will cost you. Seeking quotes for renovations and full demolish/rebuilds will then help you compare the options.
How much can I afford on my home upgrade?
It’s not much use dreaming of a home upgrade and researching costs if you don’t know how much you can afford! If you haven’t talked to a mortgage broker in awhile, now is the perfect time to see how we can help you achieve your dreams. Mortgage brokers have a legal duty to work in your best interests so we will always take the time to understand your goals and personal financial circumstances before recommending options.
If you are wanting to renovate, we can help you understand how much equity you have in your current home that you could access to pay for the upgrades. If you are wanting to buy and sell, we can assist with a range of financing options to make it work for you. If you are wanting a knock down rebuild upgrade, we can advise of the financing process you’ll need to pay for it.
What is rentvest and should I rentvest for my home upgrade?
Rentvesting is one further option to consider to achieve your property dreams. Rentvesting is where you rent a property that suits your lifestyle needs while owning an investment property in a location you can afford. This is an increasingly common trend in Australia and many Sunshine Coasters find this is a way to get into the property market without sacrificing their property dreams.
Checklist for home upgrade
Here’s a handy checklist when upgrading your home:
- Research all your options to decide what is right for you and your family
- Make a budget
- Find your current home’s value
- Apply for conditional approval for finance