For a lot of households, there comes a time when your home can’t accommodate the needs of your growing family. Maybe the kids are getting older and need rooms of their own or you have another one on the way which means the home office gets transferred back to the kitchen and you go back to trying to keep butter off your paperwork! Maybe the size and layout of your home simply doesn’t suit your lifestyle anymore and you find yourself not enjoying your time spent in it. Either way, when that time arrives you’ll realise that squeezing into what now feels like a smaller home is not an option, you just need more space…
So now comes the question, do you move somewhere bigger or extend your house to make it large enough for your family & lifestyle?
The answer depends on a number of different factors – the costs involved, your future plans, the type of house you have and how attached you are to it and even the type of area you live in. You may find the task of extending your home a little daunting, especially when it comes to budget but moving might even cost you more…
So… Save Money and Extend!
Many people believe that it will be cheaper and ‘easier’ to simply move to a bigger home, but this is often very far from the truth. Yes, there are cases when moving to a new house is certainly more convenient, but moving is stressful and costly at the best of times!
With rapidly rising house prices and South Australia’s high stamp duty rates, the cost of moving can result in a lot of wasted money.. And these additional costs start rolling in even before you’ve found another house to move into! Let’s take a look at a hypothetical situation: You decide to sell your house and move. To even sell your home, it needs some updating which costs $5k-$10k. You find a real estate agent who charges 1.8%. That, along with marketing fees and the sale of your home for $500,000, you’ve already spent over $20,000 extra.
Then, the house you move into costs $500,000 (we’re making the numbers simple for you), on top of moving costs, you now need to fork out $21,330 for stamp duty, which is simply a transaction tax that the government takes which doesn’t benefit you whatsoever. So on top of the $20,000+ you’ve already spent as an extra, you’re now spending another $20,000+ just to move into the next house.
So after all the stress and wasted money on moving, you’ve now moved into a new home that needs a renovation! More money you have to spend…
Why not instead, consider saving your money by not moving and investing in the home you’re in? If you’re already in an area you love and know you want to be in for years to come, then extending is always going to be worth the spend; to live how you want to live in the home you designed. You’re also likely to realise a significant return on your investment by adding an additional bathroom or bedroom to your home.
Why Can Extending Be Better Than Moving?
The big advantage of extending your home is that you get to stay in an area you have grown to love. Practical aspects such as keeping the kids in the same school and having access to local amenities you are familiar with are huge benefits. You also get to design the extension to suit your lifestyle and add specific features or fittings you’ve always really wanted.
Extending and renovating opens up the possibility to convert some or all of your home to an open plan layout, increase available storage, introduce more natural light, move your living areas and much more.
Fixing your own problems instead of buying someone else’s means that the $20,000 dollars you would have spent on stamp duty can go towards getting the kitchen you’ve always wanted or that extra ensuite you’ve always craved.
There are so many reasons why extending can be better than moving, but to keep things simple, we’ve outlined our top 3:
1. You’ll be investing in the value of your home…
Your family home is the best investment you’ll ever make. Home values over the decades only increase, ensuring that if you stay put and invest in the home you have, you’re sure to make a significant return when the day finally comes to sell.
2. You’re investing in your lifestyle!
Investing isn’t always for financial benefit. Investing in your family home will elevate your lifestyle. Not only will the value of your home increase significantly over the years, but the quality of time spent in your home will too, and you can’t put a price on that. The memories you will create entertaining and cooking with loved ones in your kitchen, watching the kids and grandchildren play in the garden or simply enjoying time alone with a good book in your sun-soaked living room are worth more than any dollar value.
3. Your home will be one-of-a-kind!
With so many ‘cookie cutter’ homes popping up, having the ability to design and customise your home to suit you, your family and your lifestyle is one of the biggest reasons families choose to extend instead of move. You’ll feel more proud of your home which means you’ll entertain more and just knowing that you’ve got something special that no one else has will leave you feeling fulfilled and satisfied.
When extending or renovating your home it’s important to get a professional builder onboard who specialises in your type of project, understands your vision and has a track record of producing quality workmanship.
Choosing the right builder is one of our 6 Essential Things You Must Do For A Successful Home Renovation, download our free guide here to discover the other five.