7 ways renovating can save you money
If you have outgrown your home and are considering moving or building a new house, it might pay to stop and give serious thought to renovating instead. There has never been a better time to renovate and in the current market, it might be a smarter financial decision too.
Here are some of the reasons why:
1. Retain value in your own home.
It is no secret that property values in Perth have softened since the end of the mining boom so if you are thinking about selling your existing home in the current market, you may risk not getting the best value for your home.
One way to avoid this is not to move and to renovate instead. You could turn your existing home into your dream home and increase its value in the process. This means you can ride it out until the market recovers and get a much better price when it comes time to sell.
2. There has never been a better time to borrow money.
Interest rates are at an all-time low so there has never been a better time to borrow. If you renovate you will be borrowing less money than if you bought a new home and repaying less interest to the bank.
3. Save on Stamp Duty & Agent fees.
If you sell your home and buy a new property, you will be out-of-pocket for significant fees and charges. You will be liable for agent fees plus the cost of stamp duty on a new home is pretty hefty. For example, if you sell your home and purchase a property valued at $800,000 you will be paying more than $32,000 in stamp duty on the new property. In fact, as a general rule of thumb stamp duty, agent and additional fees can equate to around 10% of the new property price and this is money you can’t get back. Renovating will provide you with immediate savings because there are no associated fees and charges.
4. An experienced builder can save to money.
Choosing the right builder for your renovation can actually save you money. Experienced and reputable builders offer excellent value for money and work with trades and suppliers who can be relied upon to do a good job for the right price. Don’t leave your renovation in the hands of an inexperienced cowboy – it is not worth the stress or the expense!
5. Increase the value of your home.
A smart renovation can maximise the value of your home and place you in a strong position to achieve the highest possible sales price when you do decide to sell. The secret to a good renovation is to not over-capitalise – make sure your renovation is appropriate for the style and location of your home.
6. Generate a higher rental income.
If you are renovating your investment property or if you think you may rent your existing property in the future, a smart renovation will help you to achieve a higher rental return. Tenants are always willing to pay more for the modern conveniences and you might be surprised to learn how much extra rent you can achieve in exchange for a very affordable renovation!
7. You may not need to move out while you renovate.
Depending on the size and scale of your renovation, there is always the possibility a smart builder will be able to complete the renovations while you are still living under the same roof. This means you won’t need to rent while your renovations are underway which could potentially save you thousands of dollars each month.
Every home is different and every family’s needs are different which is why renovation is such a great option. Renovating with an experienced team like Dale Alcock Home Improvement you can ensure your renovation is designed custom and tailored to suit your needs. Contact the Dale Alcock Home Improvement team to discuss your options in further detail.
Dale Alcock Home Improvement specialise in bathroom and kitchen renovations, extensions and additions, and granny flats so there are plenty of cost-effective solutions to consider.