Are you thinking of renovating or selling your home?

The start of a new year is always a time to ask questions. What do I want to achieve this year, am I happy in my job, how can I save the money I need for that holiday and are we happy in the home we’re living in?

Each question comes with its own thoughts, desire and challenges, especially the one about the home.

Should we complete the renovations and work needed around the house or should we just sell and buy another property?

Here’s a quick tip – if you ask a builder or real estate agent the question don’t expect an objective response.

A builder will of course talk about the costs of selling and the stamp duty you will have to pay for the purchase of a new home. A real estate agent will talk you through many examples of the hidden costs that always pop when you renovate, the likelihood of you over capitalising on the property and ask you if you really want to move out and rent another property while the renovations are being completed.

Hey, you can’t blame them as it is their livelihood and self-interest plays a part in all our lives.

The answer to your decision simply lies in another set of questions.

• Do you like where you are living, the location and does it suit your lifestyle?
• What are the likely costs to renovate or complete minor work?
• Would the local council approve the building plans?
• How does your home compare to other properties in your street in terms of value?
• Have any properties sold in your street or close by that are comparable to your property? – this will provide you with a guide to what your property might be worth now and then on completion of the renovations
• What are the costs to complete and is it within your budget?
• What impact will renovation or relocating have on your lifestyle and financial stability?

Only you know the answers to the questions.

Let’s say you love living in your existing home. You really like the location, it suits your lifestyle but you would still like to consider some options of how you could improve the property and make it so you are happier in your home.

There are so many magazines and websites that provide hints and tips on how to add value or create the home you desire. Whilst they all have great ideas, it is important to do your own research and my one piece of advice is; don’t skimp on quality.

If the building quotes don’t fit within your budget, don’t do it. Don’t try and fit the plans into your budget because it may just create heartache and disappointment.

There are too many case studies out there where builders have said they could fit the budget into their costing’s however their work failed to meet the home owner’s expectations.

I’m also 100% certain a DIY experiment at my place would be doomed from the outset.

Before you decide on renovating or selling and buying you could also take a stroll around your existing home and ponder.

• Can you create a sense of space by removing a wall?
• What if you used a lighter colour to paint the room? Would that create more light and the perception of a bigger room?
• What about a small deck or outdoor area for the BBQ and to entertain.
• A new bathroom or kitchen is always a winner and doesn’t have to cost a fortune
• How’s the garden? Would clearing out what’s currently there create more space and opportunities?
• What about a lick of paint for the front of the house. As you arrive home a fresh looking home may just be the tonic for you to feel better about the property.

They key is you do have options. If a change will help, go for it.

It is, however, important to understand the financial impact of any decision. If the decision creates any type of financial pressure you will more than likely dilute any of the benefits you sought to achieve.