S01E06 - Renovate, Relocate or Detonate

This is a question that will plague all homeowners at some point and there is no easy answer as it will depend on so many factors as every situation is unique. Renovate or detonate or is it time to sell and move on. Typically so many factors to consider i.e. Lifestyle and budget.

Some homeowners seek out the right place to live; they locate the places that will satisfy their needs, areas close to work, schools, shopping facilities, parks or other lifestyle factors. In this scenario the homeowner lives in the right place, but in the wrong house so found renovating the most practical solution.  However if the location doesn’t meet your needs or lifestyle then perhaps the idea of a renovation can't be justified and it’s time to move on. However there are still things to consider when relocating, you may not find the house that is perfect for your needs, there will always be drawbacks, there is the question if selling your current home will cover the amount needed to buy the home you want? What are the chances that you will have enough money to buy the home in the area that will complement you or your families lifestyle? Relocating may be the easiest option to consider but can prove to be an expensive exercise

Costs for Relocating
-      Stamp Duty fees
-      Real estate agents Commission
-      Advertising
-      Storage and Moving costs
-      Refinancing mortgage

Homeowners that do choose to stay are still left with the decision to renovate or detonate. You have a house that just doesn’t meet your needs; it is often difficult to know what to do. However there are so many factors to consider like site specific factors, council regulations and codes. Sometimes the condition of the house and the extent of renovation will also determine which option would best suit. Knocking down an existing house will require the appropriate council approvals. Sometimes retaining an existing house could cost more than a new design, items such as any structural requirements, rewiring, replacing roof or any other hidden costs involved with the existing home. However if you want to renovate you must also consider the implications that come with any renovation.

-    Local Council approvals
     No renovations are possible without first getting the appropriate approval from local              planning authorities. This will require formal development application for the property            and will require submitting the detailed building plans and proposals
-   The implications with living on a building site
-   The time and effort meeting with builders/contractors and consulting with architects and       engineers reviewing any and all relevant plans and forms.

The next question comes down to the fear of over capitalising on your house. It is important to ensure that you minimise the risk of overcapitalising while adding value. Owners must ensure that the cost of the renovation doesn't outweigh the market value it will add to your own. Some owners can be disillusioned that spending a great deal on renovation their home will reap thousands more in the resale. this is not always the case. The best way to avoid this trap is to do the appropriate research and check the investment potential of your area, It's best to research local real estate sales history and the market to understand what existing home are selling for and what profit if any have been made over the last few years.
 I found this article which I thought was very insightful and may make you think twice.

"Overall, you need to do some homework and weigh up the advantages and disadvantages of each option" - Holly Jones

http://www.tonycootearchitect.com/Tony_Coote_Architect/Talks_and_articles/Entries/2007/7/30_Renovate_or_detonate.html


I hope you Enjoy.
The Architect of Tomorrow..