Why Renovating or Extending is a Great Idea, Even in a Slow Market
Every real estate market tends to follow the same general cycle: growth; stabilisation; decline; then recovery.
When homeowners find themselves in a stabilising or declining market, many second-guess the value of investing a large sum of their hard-earned cash in a renovation or extension project when there’s no guarantee they’ll be able to recoup their funds if they needed to sell quickly. However, this shouldn’t be the case—in fact, renovating or extending in a flat market can actually be a really smart move.
Here’s why…
GET YOUR HOME MARKET-READY
If you know that your family will outgrow your home at some point, even if you do go ahead with a renovation or extension, a flat market shouldn’t deter you.
Undertaking a home renovation or extension project while the market is slow will ensure your home is ready for sale for when the market picks up again while allowing your family to live more comfortably in the interim. Tackling the key issues that are likely to deter buyers will ensure your property is sale-ready and sure to get top dollar for your home when the time comes to sell.
ENHANCE YOUR LIFESTYLE
While property values and external market factors are undeniably important, they’re not the be-all and end-all. Ultimately, your home needs to suit your lifestyle.
While our natural instinct is to justify our decision to renovate or extend in immediate financial terms, you can’t overestimate the value of living in a home that allows you to stretch out and live comfortably every day.
Whether you’re most in need of an extra bedroom, additional living space or a new kitchen or bathroom, renovating existing spaces or expanding the footprint of your home can have an immense impact on its overall liveability, with the financial rewards able to be realised down the track once the market recovers.
This becomes particularly relevant if you plan to continue living in the home in the longer term—if you don’t intend to pack up and move any time in the near future, the current market conditions shouldn’t be a determining factor in your decision to renovate or extend.
AVOID THE COST OF MOVING
One alternative to renovating or extending your current home is to move to a new one, but it’s important to weigh up all the costs.
Not only is uprooting your family to move to a new house inconvenient, but the land transfer (stamp) duty you’ll need to cover will also add significantly to your costs. The current land transfer duty rate for a property purchased in Victoria for more than $980,000 is 5.5%, adding a hefty sum to the overall cost of moving—particularly if you’re purchasing a larger, renovated home with an expensive price tag.
MELBOURNE HOME RENOVATIONS AND EXTENSIONS
If you’re planning a home renovation or extension project in Melbourne, we’d love to hear from you.
At APC Build, our award-winning team of builders, site and project managers are experts in a wide range of custom renovations and extensions. With a long list of contemporary and heritage restoration, renovation and extension projects under our belt, we know how to rejuvenate or reconfigure a tired or dysfunctional home.
Backed by three generations of craftsmen, we also have a unique ability to accurately cost your renovation or extension project at an early stage to ensure you can incorporate the features and achieve the finish you want while staying within your budget. Want to know more? View our portfolio of previous projects, get acquainted with our team or contact us to discuss your renovation or extension project.