The decision to move or renovate is one of the most common dilemmas facing homeowners in New Zealand today. Whether you’re starting to outgrow your current home, or you’re looking to increase its value, both options come with pros and cons.
Before making a decision, it’s important to assess your personal situation, the state of the property market, and what renovation or relocation would entail. This article will walk you through some of the key factors to consider as a property owner.
Assess Your Needs
Start by identifying the core reasons behind your desire for change. Are you looking for more space, modern amenities, or better access to schools, parks, and transport? If your current home no longer fits your needs, a move may seem like the obvious choice. However, if you love your location and simply need to update your space, a renovation might be the answer.
Renovations can range from simple updates like repainting and re-carpeting, to major changes like adding new rooms or overhauling the kitchen and bathroom. If it’s just about refreshing the interior or improving your home’s flow, renovations can offer a satisfying solution without the hassle of packing up and moving.
The Property Market Considerations
The current property market plays a crucial role in your decision. In high-growth areas like Auckland, South Auckland, and Wellington, house prices have surged in recent years, making buying a new home an expensive proposition. If you’re in a seller’s market where demand outpaces supply, selling your property might yield high returns. But when purchasing another home, you’ll need to consider how much more you may have to pay to secure a new place.
On the other hand, renovating in a booming market can increase your home’s value significantly. Well-done renovations, particularly to key areas such as kitchens, bathrooms, and outdoor living spaces, are likely to provide good returns when you eventually do decide to sell.
Budget and Financial Considerations
Budget is another key factor. Moving means not just buying a new home, but also paying for real estate agent fees, marketing, legal costs, moving expenses, and potentially higher mortgage rates. These costs can easily add up to tens of thousands of dollars.
Renovating also comes with its own set of costs. You’ll need to budget for builders, materials, council consents (if necessary), and potentially temporary accommodation while work is being done.
Depending on the scope of your renovation, this can either be a small-scale project or a significant financial commitment. It’s essential to get accurate quotes and add a contingency fund, as renovation costs can often spiral beyond initial estimates.
Council Consents and Compliance
Renovations that require structural changes or additions will likely need Auckland Council or local authority consent. Navigating the council consent process can be time-consuming, and non-consented work can adversely affect future saleability. If you’re unsure about the process or your home’s potential for upgrades, consulting with an architect, a building professional or the Council is recommended.
Emotional and Lifestyle Considerations
Beyond financials, the emotional side of moving versus renovating can be equally important. Are you attached to your current neighbourhood, schools, or the community? Moving can be stressful, especially if it involves uprooting your family. If you renovate, you get to keep your familiar surroundings and mould your home to your liking. However, renovations can be disruptive, and you’ll need to be prepared for the noise, dust, and potential inconvenience of living in a construction zone.
Future-Proofing
Finally, think about the long-term potential of your decision. If your current home has solid bones and renovating would make it perfect for the next decade or more, then it could be a more cost-effective option. If your family is growing or you anticipate other life changes that will require even more space or amenities, moving may make more sense. You should also factor in potential market conditions; will your renovated home increase in value when you decide to sell in the future?
Summarising
In the end, there’s no one-size-fits-all answer to whether you should move or renovate. Take time to evaluate your personal needs, financial situation, and how each option aligns with your future plans.
Whether you decide to stay put and create your dream home through renovation or move on to something new, careful planning will ensure you make the best decision for your circumstances.