IMPROVING
Fix or Sell?
Renovating with a purpose
BY MONIQUE DU TOIT
E
very homeowner invariably reaches a point where they must ask themselves the question: Will I fix my current house, or sell it? Turns out, either option is bound to cost some time and effort. This month, we break down the different steps to take for each scenario.
I’ m Staying Put
For many of us, the idea of packing up and moving house is a stressful … not to mention expensive. Breaking down the exact costs can be tricky, but once you factor in transfer fees, moving costs, cleaning services, and a whole host of unexpected expenses, it makes sense that many homeowners are choosing to renovate rather than move.
Of course, large scale renovations have their own set of drawbacks. In many cases, you may choose to live in your home while renovating. This can be a disruptive exercise, filled with many possible worst-case scenarios. As a savvy property owner, it’ s always important to consider what will add value to your home in the long run. It’ s been well documented that the two areas in a home that adds value are the kitchen and bathrooms. According to Michael Corbett from Trulia, it’ s important to consider your neighbourhood and the types of buyers that target the area:“ Don’ t over-improve. You likely won’ t get your money back in the sale,” he cautions.
Andrew Mirams, MD of Intuitive Finance explains:“ A well-costed and well-managed renovation can convert a two-bedroom home into a three-bedroom one or add that extra bathroom that a growing family needs for, potentially, a
SHOULD I STAY OR SHOULD I GO
Oliver Marks from Realtor highlights the following critical considerations when deciding to renovate or move:“ Your house isn’ t just your largest investment, of course, it’ s also the place where your family lives. Financial considerations aside, the question of whether to move or improve should be decide by the things you can’ t change about your current home. If you love the spot, improving makes sense. But if a different location would be an improvement in its own right, then trading up could be the way to go.” He goes on to list a few examples:
• School district
• The amount of traffic on your street
• Size and layout of your yard
• Commute time
• Access to markets and malls
• Neighbourhood quality of life
fraction of the cost of selling up and moving somewhere new.” His advice is setting up a detailed renovation budget:“ The most successful renovators create a detailed budget and stick to them,
24 FEBRUARY 2018 SA Real Estate Investor Magazine