Should you up­grade or sell?

Con­sider your op­tions in real es­tate


IT’S the mil­lion-dol­lar ques­tion al­most ev­ery home­owner will ask them­selves even­tu­ally: should I up­grade my ex­ist­ing home, or sell up and start afresh with a new prop­erty?

If your prop­erty is no longer tick­ing all the boxes, here are a few of the ma­jor pros and cons you should con­sider be­fore you de­cide whether you should stay or go.



De­cid­ing to ren­o­vate can be an ex­cit­ing chal­lenge. You get to tai­lor-make the changes you want and de­sign ev­ery­thing to suit your style and bud­get. Plus, if you con­sider your­self con­struc­tion savvy (or you have a few mates who are) you can save your­self some cash in man­ual labour by tack­ling smaller ren­o­va­tions your­self. CONS: On the down­side, you need to pre­pare for lots of de­ci­sion mak­ing and dis­rup­tions to your day-to-day life for an ex­tended pe­riod of time. Here are the im­por­tant things you’ll need to con­sider

■ Ren­o­vat­ing can be dis­rup­tive Mak­ing ma­jor im­prove­ments to your home will mean deal­ing with ex­tra noise, ex­tra mess and other in­con­ve­niences, so it’s im­por­tant to con­sider the im­pact it will have on your lifestyle.

■ Ren­o­vat­ing is not nec­es­sar­ily cheaper

Ac­cord­ing to The New Daily, a re­cent study that com­pared quotes from 52,000 trades­peo­ple across the coun­try found ren­o­va­tions can cost as much as $70 per hour. Mul­ti­ply that by seven hours a day over a few weeks and you’re look­ing at a big chunk of cash. ■ Choos­ing a builder can be tricky Find­ing a re­li­able, pro­fes­sional builder to carry out your ren­o­va­tions is a must. Make sure who­ever you choose is li­censed and pro­vides you with a com­pre­hen­sive ren­o­va­tion plan and quote up front.

Sell­ing your home

PROS: ■ Sell­ing your home has the ben­e­fit of be­ing much sim­pler than ren­o­vat­ing; you can sim­ply move into your new home with noth­ing to do but un­pack. You don’t have to put up with the in­con­ve­nience of liv­ing among chaos for months on end and you can de­ter­mine most of the costs up front. CONS: How­ever, it’s un­likely you’re go­ing to find ev­ery­thing you want in an ex­ist­ing prop­erty so you’ll prob­a­bly have to com­pro­mise on some fea­tures

There are also a num­ber of costs as­so­ci­ated with mov­ing, in­clud­ing:

■ Stamp duty

■ Lenders Mort­gage In­sur­ance – if you have less than 20% eq­uity in your cur­rent home you will need to pay this

■ Sell­ing costs such as agent com­mis­sions, ad­ver­tis­ing costs and val­u­a­tion fees

■ Buy­ing costs such as build­ing and pest in­spec­tions

■ Costs as­so­ci­ated with mov­ing house such as re­moval­ist’s and stor­age fees.

Fi­nance op­tions

Whether you de­cide to sell or stay, MOVE can of­fer sev­eral op­tions for fi­nanc­ing your plans.

■ Home loan re­fi­nance Re­fi­nanc­ing to MOVE has saved some mem­bers thou­sands of dol­lars in in­ter­est re­pay­ments. Once your fi­nance ap­pli­ca­tion is ap­proved they deal di­rectly with your cur­rent lender. All you need to do is sign the fi­nal pa­per­work and let them do the rest.

■ Top up your ex­ist­ing home loan

If you have your mort­gage with MOVE and you have suf­fi­cient eq­uity in your prop­erty, you can look at in­creas­ing your loan to cover the ren­o­va­tions.

If your mort­gage is not with MOVE, it’s pos­si­ble you may al­ready be pay­ing too much for your fi­nance. Make sure you com­pare your cur­rent in­ter­est rate be­fore de­cid­ing to top up with your cur­rent lender. ■ Per­sonal loan If you find you are a lit­tle low on eq­uity you could also con­sider tak­ing out a per­sonal loan. This op­tion can work es­pe­cially well if your ren­o­va­tions are on the smaller side.

If you still aren’t sure whether you want to ren­o­vate or sell, or if you’d like to find out more about your op­tions, talk to a MOVE home loan spe­cial­ist to­day. Phone 1300 365 216 or visit­

Rail­ways Credit Union trad­ing as MOVE. ABN 91 087 651 090, AFSL/Aus­tralian Credit Li­cense 234 536.

MOVE home loans rated five stars for value

MOVE has been awarded the pres­ti­gious CANSTAR 5-star rating for a to­tal of seven home loans across four cat­e­gories. About the awards Each year CANSTAR gath­ers data on the broad range of home loans avail­able from var­i­ous home loan providers, in­clud­ing the ma­jor banks.

Loans are com­pared and judged on a num­ber of cri­te­ria to de­ter­mine the value they of­fer con­sumers.

The 5-star rating means th­ese MOVE home loans have been judged by CANSTAR as of­fer­ing ex­cep­tional value to con­sumers.

In fact, it puts them in the top 10% in the mar­ket.


CON­SID­ER­ING A MOVE? Should you sell up and start afresh with a new prop­erty?

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