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Admit it or not, your home eventually loses its charm over time. Depending on how you look at it, a new coat of paint might help regain that charm, or sometimes the money you spend renovating outweighs the cost of moving to somewhere new.

The pros and cons of renovating

Renovating your property is a great idea if you love the location of your home. Why move when you’re already where you want to be? This is a great opportunity to update your home and help add even more value to your home in a sought after area if you decide to sell later down the track.

Renovating is also a good option if you’ve outgrown the current look of your property. Changing things up a bit, updating the colour palette, and extending the property are just some of the ways you can renovate your property depending on your budget.

Money isn’t the only consideration when you’re thinking of renovating your property. You also have to ask yourself if you have time to invest in the project. This is especially important if the work needed is extensive, which means you may have to move to a different property temporarily or live with the short-term discomfort of living in a messy home that isn’t functional.

On the downside, the extent of your project may be limited by local regulations in your area. Minor ones generally don’t need council approval, but if you’re planning on extending your property or adding a pool for example, then you may need to secure council approval.

The pros and cons of upgrading to somewhere new

Upgrading your property definitely seems like the easier option if you’re not entirely happy with your current suburb. The cost of the new property in a pricier area may hurt your bank account temporarily, but it can pay for itself after several years once its value appreciates.

Choosing to upgrade instead of renovate is also a better choice if you don’t have the time to spare for a full-on renovation. Even if you move to a property that’s been lived in, your costs may potentially be less than what you might spend on a renovation project.

Also in line with the cost, upgrading may also be recommended if renovating your property would require too much work, which could translate to several hundreds of thousands of dollars required to do the job.

However, upgrading a property may be less than ideal than a renovation in terms of finding a property that’s actually an upgrade from your current one. Sometimes the stress of trying to find the right property can outweigh that of renovating a home that you already love.

Buying a new property will also result in significant sales costs and government charges. The cost of a real estate agent to sell your existing property should be included in your calculations, and the cost of stamp duty on the purchase of your new home will be a considerable investment.

It is important to remember that different factors generally should be considered when you’re deciding whether to renovate or upgrade your property. Does your home have a lot of unused equity that you could use to renovate your home or are your kids all moving out of home therefore you no longer need a 4-bedroom home? Once you weigh up the pros and cons, one of our mortgage brokers can chat to you about the most suitable finance option to fund your decision.