This is a question I’m hearing a lot lately as homeowners consider the most cost-effective option for their next move.
The answer depends on several factors, including location, financial resources, income, and even your skill set!
Let's have a look at the things you should be considering to help make the right call.
1. Understanding the Costs
The first step is to get a clear picture of your expenses. If you're considering renovating, determine how much it will cost to bring your home up to the standard you want. Ask yourself:
Will the renovation make our home comfortable for another 3, 5, or 10 years?
What are the estimated costs for materials and labour and have we got a quote so we know what it will actually cost?
Do we need to get plans drawn up?
Could unexpected expenses arise during the process?
At the moment, construction costs are on the higher side, so be prepared for the possibility that renovations may be more expensive than anticipated and factor that into your situation.
2. Comparing the Cost of Buying vs. Renovating
Next, look at what you could buy in your location you want to live in.
If you were to sell your home and purchase another, what would that property cost?
You need compare apples to apples here—consider properties in similar locations that fit what you're looking for.
For example, I recently spoke with homeowners in Hamilton who were debating whether to spend $100,000 on a renovation or move to a different suburb. They ultimately chose to move because it provided better schooling options for their son.
Your decision might also depend on how much work is needed. If a $50,000 renovation can transform your existing home into your dream space, that might be a great option.
However, if moving offers better long-term value, it could be a better fit.
3. Your Future Financial and Lifestyle Considerations
Thinking about what’s coming up for you is really important.
What will your income look like in the next few years? Are you expecting a pay-rise or changes to your position?
How long will the renovation take, and what could you purchase in that timeframe?
Do you want to live in a construction zone for a period of time and how would that affect your work and family life?
Sometimes, the decision isn’t purely financial. If you have young children, a demanding job, or other commitments, dealing with a long renovation might not be practical.
Consider whether you have alternative housing options—could you stay with family or friends during the renovation?
4. Do You Have the Skills to Renovate?
If you have experience in DIY or construction, you might be able to take on some of the renovation work yourself, reducing costs.
However, if you lack the time or skills, hiring professionals could make the project more expensive and time-consuming and fall outside your budget.
Often there is a blended option here where you might be able to recruit some great tradespeople to complete a kitchen but offer a few mates a BBQ in return for helping build a deck!
Making the Right Choice for You
There’s no one-size-fits-all answer when it comes to renovating vs. upgrading. The best decision depends on your financial position, lifestyle needs, and long-term goals.
If you’re not which path to take, reach out for advice—we’d love to help you explore your options and find the right solution for your situation!
Book in a call below with one of our advisers and we'll get you on the road to your dream home, faster.