Five reasons to upsize rather than renovate

So many uncertainties haunt a large-scale renovation project that it’s no wonder most homeowners opt to trade up rather than endure the disruption of building works in their lives.

Money is also a key consideration because more renovations run over budget than don’t. Life gets tricky if you run out of cash or the lender won’t extend additional credit.

You have more control of your finances when you set your heart on searching for a new home. You can set your spending limit safely so long as you remain realistic about the likely price your current home will achieve.

Many renovations occur because space in the home becomes cramped as children grow. The disruption that even modest extensions cause to the whole family should never be underestimated.

As experienced local agents, we know many families who have preferred to bite the bullet and move rather than go through the hassle of selecting architects, builders, designs, materials and then coping with the chaos of construction.

And it’s not always guaranteed you’ll make a profit on the investment when the time does finally arrive to sell. Remodels date quickly, and the best way to earn your money back is to put the property on the market immediately after the work has been completed.

If you’re currently weighing up your options, below are five key reasons that make a case for moving up to a bigger and better home.

• A renovation can increase the value of your existing property but it may not yield the long-term financial benefits of moving up to a more expensive home. Consider your location and land size.
• Do you really have the money? Few renovations are delivered on budget. There’s scope-creep as you change your mind and finesse what you want. The alternative is to live in something half finished until you save the additional cash.
• There are always unforeseen problems with significant renovations, and these can cost you big time. Pundits say you need to put aside an additional 20% of the cost to cover for nasty surprises. Ouch.
• It’s easy to over-capitalise, especially if you change the floor plan. Always be careful to ensure that you’re not spending more money on the renovation than the final house will actually be worth. Ask yourself, will your renovation bring your property up to the standard of other homes in your street? Or make you the best home in the street? The latter is a sure sign of overcapitalising.
• Chaos will reign for months. The disruption and stress of a renovation on the whole family can never be dismissed. Consider when teenagers may be taking exams and other major life events that need to be managed around.