When you’re not completely satisfied with your existing home, your thoughts will naturally turn to three options – home extensions, home renovations or selling and moving somewhere else.
If you love the area in which you live, there’s no need to pick up stumps and move on. You can create the home you’ve always wanted at your existing address. But deciding whether to extend or renovate is a process of weighing up your options to find out what might work best for you.
In the first instance, your answer will likely depend on your available budget, how much time you want to dedicate to the process, and what resources you have at hand.
You’ll also want to take some time to consider how much you can afford to change without over-capitalising on your property. This is where doing some research into:
- How much a renovation or extension will cost. This will require you to make some plans about what you want to do and get quotes from builders/ architects.
- Current property values in your suburb. Are property experts tipping house prices will rise in your suburb in the future?
If you discover property prices in your area are unlikely to rise above the cost of what you’ll need to spend to get your dream home, it might be time to sell up. But you’ll also need to keep in mind any changes you make will need to future-proof the commercial appeal of your home.
To help you get started, we’ve put together this list of pros and cons for both extending and renovating:
Should I extend my home?
- You're already integrated into your community. If you're already well established in the suburb, work nearby, your children attend local schools, and you have a great support network of friends, it makes more sense to extend.
- Your home has the right footprint for extending. Remember, extending doesn't have to mean a large backyard – you can also choose to add a second storey, first floor extensions or remove previous extensions and remodel floorplans to make more effective use of space.
- You have a growing family. If you’ve run out of room, an extension may be the only way you can stay in your current address comfortably.
- Selling and buying another home is significantly expensive. Stamp duty, commissions, solicitor’s fees and removal costs can add up – if the costs of moving outweigh the benefits, you might be better served to stay put and extend.
- You’ve got a limited budget. A large-scale home renovation may cost you more than an extension because there can be a lot of hidden extra costs.
Should I renovate my home?
- Your home is looking tired and dilapidated but is still structurally sound. If your home is big enough for your needs but needs a refresh, renovating is definitely a good idea.
- You only need to update a few rooms to get you home looking more modern. Renovating your bathroom or kitchen with modern appliances, benching and tiles will go a long way to making life more comfortable in your current house.
- You're looking to sell soon. Bathroom and kitchen renovations can cost between around $10,000 and $30,000, but they can add more than $50,000 to your property value.