Feel like the floorplan of your home isn’t working for you any more? Over the outdated decor in your kitchen or bathroom? It may be tempting to pack up your belongings and move, but taking the time and effort to renovate your existing home could actually save you a sizeable amount of money in the long run.
Buying vs renovating
Buying a new home may seem like the answer to all your problems, but there are a large number of additional expenses that could see you lose over $50,000 on top of the original purchase price of your property. Stamp duty, legal fees, moving costs and other expenses quickly add up, raising the question of whether spending that money on renovations could actually help you turn your existing home into your dream home instead.
See below for a simplified breakdown of the expenses associated with buying a home in NSW versus a home renovation. Please note that all figures are estimates.
Buying a new home and selling your existing property
- Median house price (Sydney) - $1,000,000
- NSW stamp duty -$42,300
- Advertising and marketing - $5,000
- Moving costs - $2,500
- Legal fees and conveyancing - $1,800
- Building and pest inspection - $600
- Auctioneer - $400
- Pre-sale repairs - $200
- Utility connection - $50
- Agent commission - 2%
Renovating your home
- Renovation - $50,000
Using the money that would otherwise be spent on stamp duty and other expenses, it’s possible to make changes around the home that range from drastic floor plan changes to simple updates to floor coverings, appliances and wall colours. If you love the area you live in, making some small changes to your home could help you create the perfect space to retire and grow old in.
Work with industry professionals
If the thought of renovating is more appealing to you than moving, consider consulting industry professionals, such as interior designers, from the start. They’ll help you to come up with floor plans and designs to meet your needs, helping to make your vision a reality. With years of experience, they might even be able to spot some small changes, such as altering the positioning of doors, that’ll have a big impact on how your home feels and looks.
Although the services of an interior designer might seem costly to start with, you may actually save money in the long run as good plans help to make the renovation process run more smoothly. Designers may also pass their trade discounts on, helping to reduce the total cost of your renovation. Before you start a renovation, be sure to clearly specify your budget. This gives the designer an idea of what can realistically be achieved and the kind of results you can expect.
The change offered by moving home can be exciting and refreshing, but there’s still plenty to gain from renovating your current home. Not only will you be able to continue living in an area you know and love, but you’ll also continue to enjoy the same sense of community you enjoy. There’s something incredibly special about watching your grandchildren play in the same space that your children did years before too!
Don’t have enough budgeted to cover all your costs? Learn how a SocietyOne home renovation loan can help make your home renovation dream a reality.