Should you renovate or relocate

Are you trying to decide whether to renovate your current home or sell and relocate to a new place?

There are positive and negatives to both options, so it's crucial you thoroughly investigate both avenues to see which best suits your situation.

Relocating

The cost of upgrading to a better home has risen significantly over the last decade, but so has the value of existing homes. This fact often makes selling the more tempting of the two options.

If you are buying in an unfamiliar area take the time to study your local market so you have a good understanding of current values.

It can be tempting and financially rewarding to sell up and relocate to a better home in a less expensive area, but it is also very easy to fall into the trap of overcapitalising.

Speak to a local REIWA agent about the area you're interested in. They will be able to inform you of what you need to know about local market value.

Renovating

Renovating often appeals to people because it provides the chance to spruce up a much loved home and bring the changes you crave to you. It can also be the more affordable alternative.

If renovating, it is best to do it properly and to a high quality. While it may be tempting to choose the more affordable alternatives, make sure these decisions won't affect the re-sale value of your home.

1. In most areas, properties fit into four categories:
2. Original properties where the value is tied up in the land.
3. Quality-built new homes. Completely renovated homes.
4. Properties with outdated or inappropriate renovations (these properties may take longer to sell and can sometimes be a trap for well intended renovators).

If you're interested in renovating your home, keep in mind the style evolution of housing and remember that the best renovations are those which complement the original style and features. It's also important to avoid overcapitalising.

Make sure you consult with designers or architects prior to renovating and speak to a REIWA agent in your area about the likely re-sale value. This will give you the best opportunity to ascertain if you're able to recover the building costs.