One of the biggest concerns that a growing number of Australian homeowners have is deciding between upsizing and renovating. A report suggested that due to the pandemic related restrictions in the past couple of years, many homeowners have saved a significant portion of their income due to low additional expenses. By the end of the year, the total excess accumulated savings could be around 230 million AUD. It has led many to consider undertaking home makeovers, whether renovating or upsizing. Online Home Loan is the best way to take it forward as they provide low prices and access to funds with ease.
Why Do People Want to Upsize or Renovate?
Growing families who have outgrown their current living space debate about upscaling or renovating their homes. The property values are skyrocketing across the nation with each passing year. Therefore, potential homeowners are considering this to be the best time to cash in on the current market by selling their older homes or getting an Online Home Loan and upsizing. Furthermore, many working adults are shifting to create and adapt to better work-from-home conditions by looking at bigger homes in the suburbs. The Australian Bureau of Statistics shows that during the beginning of the pandemic, about 65,000 residents moved from the major cities of Sydney and Melbourne to other parts of New South Wales, Victoria and Brisbane.
Consider if It is Worth It: Emotionally and Practically
The first question that homeowners who consider renovating must ask is if it honestly is their forever home. They must honestly answer if they and their household would continue living there for several years. Renovation is the best option for those who have outgrown their living space but still have an emotional attachment to it, and it can satisfy their needs for the next few years with a few modifications. Those who have settled in the neighbourhood and have school commitments, friends and family nearby would find it worth investing in the renovation. However, growing families living in small apartments in the city might want a larger home to accommodate all the members and their needs. Such families are better off upsizing. No renovation can increase the amount of square footage in a small property.
Consider the Cost of Renovation and Upsizing
Evaluate the Current Financial Situation
If it is about applying a new coat of paint, changing a few aesthetics and interiors, then one can dip into their savings and get the work done. But, with renovations, if they consider making structural changes, adding living spaces like granny flats or an additional storey to the building, they must plan the finances. Similarly, suppose they want to move up to a better home. In that case, they must consider paying off their current home loan knowing that there are additional costs to starting a new mortgage with an already existing one, including exit fees, rate of interest, stamp duty costs, valuation and agent fees.
Additional Costs
One must also factor in the cost of moving, especially for those who are planning to move regionally or interstate. They must also consider buying new home insurance, furniture and appliances to suit the new space. An Online Home Loan provides homeowners with competitive loan prices and low-interest rates to cover the additional costs. They also provide access to equity by refinancing and reducing mortgage repayments with easy processing.
Ultimately, choosing renovation or upsizing comes down to the family size, cost, overall goals, property value and duration of use.
