According to Andrew Winter, host of the Foxtel program Selling Houses Australia (and the Extreme version), has some tips for those considering their home options.
- What’s wrong with your current home?
Andrew says when weighing up whether to move or expand, homeowners need to ask themselves what is it about their current property they don’t like.
“If the location, or the style of the house is wrong and it doesn’t matter how many bathrooms or bedrooms you add, then the best option is to move,” he tells Cumberland Newspapers.
“Alternatively, if everything about your home suits – its situation, style, proximity to schools, good neighbours – then expand.”
- What makes the most financial sense right now?
Andrew says it’s best to consider what you want from the new home and whether this can be achieved my remodelling you existing home. Do some research on what’s available in the market, what your house would sell for and then factor in agent’s fees, stamp duty and legal and moving costs.
Get some quotes form builders on how much the renovation will cost. An approximate square metre cost can range form $1500-$3000 per square metre, but that can always escalate.
- To turn your home into a dream home, you may need to go up. Will council let you?
“Does your site have any restrictions such as difficult access for the contactors?, Andrew asks. “Sloping sites and extra heights will all add to building costs. You need to check with your local council.”
- Get an estimate of what your home will be worth afterwards.
Over-capitalising is the biggest problem facing renovators. The money which is injected into the project may not equal a higher selling price.
Andrew says: “To evaluate the whole scenario, the maths is:”
- current home value + extension/home improvements costs = improved home value as a minimum.
“If the two elements equate to considerably more than the home’s improved value, this may help you decide it is better to move, or accept it could take up to a number of years to recoup your investment.”