If you’re sick and tired of living in an old and outdated property, then you have two options. You can either sell the apartment you have right now and look for something that suits your tastes a little better. Or, you can stick to your current location and renovate the home you have.
Often, choosing which option is best for you starts by figuring out what’s going to cost the most. If selling your home right now would mean taking a huge loss in your finances, then it’s probably not a good idea. On the other hand, if selling could help you get the property that’s right for you without breaking the bank, then it’s worth considering.
Here’s what you need to know.
Buying a Property: The Expenses to Consider
If the property in your area isn’t becoming increasingly valuable, or you’re not living in the location of your dreams, then it may be worth selling your property and buying something new. When you buy a new apartment, you have an opportunity to find the home of your dreams. However, there is a multitude of costs that you’ll need to consider, including:
- Stamp duty: You’ll need to pay for stamp duty again, as well as the fees for transferring the title of your home.
- Home loan application fees: If you need to apply for a new loan, then your lender may charge fees for this process.
- Refinancing costs: Sometimes, changing the terms of your loan can mean paying additional fees. Check this with your home loan provider.
- Real estate fees: Selling your home costs money. Most agents will charge up to 2% in commission to help you sell your property.
- Moving costs: Packing your life up and moving to a new apartment takes time, money and a lot of patience. You may even need to invest in new furniture for your home too.
- Building inspection costs: It’s important to make sure that your new apartment is up to code with some advanced building inspection costs.
Renovating Your Apartment: The Expenses to Consider
Often, it’s a good idea to stay in the property you already have if you’re living in a location that you love. It can also be much less stressful to simply renovate your home than move to a new property. This is particularly true if there are only a few things that you want to change about your apartment, such as the bathroom, the flooring, or the décor. Some of the expenses to consider when you’re renovating your property include:
- Building materials and labour costs: The price of these things will depend on the size of your renovations, and the builders you choose.
- Apartment fees: There may be fees to pay to apply for changing parts of your apartment, depending on the terms of your purchase agreement.
- Rental fees: If you need to live somewhere else while your home is being transformed, then you’ll need to pay the extra rent for that additional property.
- Costs of professionals: Depending on the project you’re working on, you may need to hire architects, designers, engineers, project managers and more.
- Emotional costs: If you think that living on a construction site for a while might be stressful, it’s important to accommodate for the emotional costs of renovating too.
Should You Renovate or Buy?
Deciding whether you need to buy a new property, or simply renovate the apartment that you already have can be difficult. Sometimes, it’s more cost-effective to renovate your existing property, particularly if you love where you live – you’re just not happy with the style of your home.
It’s also worth looking into whether the value of the apartments in your area is increasing. If it is, then you might find it’s a better investment to renovate your property and sell at a later date. A renovation now could be an excellent investment in your future.