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.
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 www.mymove.com.au.
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?