Let’s look at the pros and cons of each option
To renovate now or later – that is the question. Have you recently bought or are looking to buy a run-down property that needs a lot of work? Maybe you’re wondering when would be the best time to renovate to get the most out of your property, your time and your budget.
Here are some things you need to consider before embarking on your home renovation adventure:
Renovate now – the pros
Create your dream home
If you’re buying a doer-upper to transform it into your ideal home, you want to start to enjoy it as soon as possible. Rather than staying stuck with what the previous owners decided on, you’ll get to start fresh – and enjoy your home the way you want it.
Access to cheaper materials
You may have heard that building materials are becoming scarce in New Zealand. With the housing market at an all-time high, builders are run off their feet with jobs backed up for the foreseeable future. The building materials they need are also in low supply and border closures have exacerbated the situation. This is expected to get worse, so renovating now could save you money.
Added value potential and easy upgrades
Renovating key areas in your home will add a huge amount of value when you sell, while also making a big difference while you live there. Investing in a new kitchen and bathroom is a great start. If you spend on quality appliances and fittings, they will hold value until you sell and you’ll benefit in the meantime.
You don’t need to be a professional to make a big difference in your home. Here are some low-cost, effective, DIY weekend jobs that are almost impossible to mess up, and may add substantial value to your home.
• Applying a fresh coat of paint inside and out
• Ripping up old carpet and sanding wood floors
• Clearing the backyard and re-landscaping
• New curtains or blinds
• New handles and lampshades
Renovate now – the cons
Easy to underestimate cost
It’s extremely common to go over budget when renovating. This is especially true when you’re trying to get it done quickly. Renovating always comes with surprises, even for the most experienced house flippers, so always keep a close eye on your budget and prioritise the most urgent jobs.
Your taste may not be what buyers want
If you want to sell your newly renovated home in the near future, you may be risking a limited pool of potential buyers. With the added value of renovations, you will want to sell at a higher price. But this means the buyer will want to make sure they love the house as it is. If the house is too customised to your taste, you may not be able to get the price you expect.
Renovate later – the pros
Time to plan and decide what’s truly needed
It’s always helpful to live in the house and figure out each project one by one. Is your bathroom old but technically works fine? Then maybe do some DIY touch-ups and redo the kitchen instead. Does the house flow nicely? Or would it greatly benefit from knocking down a wall in the kitchen to make it open-plan? Most design details will benefit from having lived in the space to see what works and what doesn’t.
Less debt – time to save
If renovating straight away will put a huge strain on your finances, you’re best to wait and save. Renovations notoriously go over budget so it’s good to have a safety net in place.
Sell a house that looks brand new
Living in a house while it’s a little run down may not be ideal, but it means you can save your money and renovate right before you want to sell and upgrade. You’ll have had time to do some minor DIY upgrades and plan the design perfectly so your renovations will be fresh before selling.
Renovate later – the cons
Risk of more expensive building costs
As we mentioned earlier, building costs are on the rise and could be a lot more expensive when you decide to renovate down the track. Talk to a building company and ask for advice. You could potentially lock in a forward contract and pre-buy some materials that are in high demand.
Living in a run-down house
The obvious consequence of renovating your house later is that you won’t be able to enjoy all the beautiful additions now. But this may be a small price to pay as you climb the housing ladder to financial freedom.
Weighing the pros and cons
Whether to renovate now or later – it’s a choice that takes some thought. Weigh the pros and cons of each option and make sure you, your family and your finances are up for the challenge. It might be that you need a renovation loan to get the ball rolling, or some advice on a smart mortgage repayment plan.
Call Global Finance today to discuss how we can help make your dream home a reality.
**These are general guidelines and are by no means a reflection of bank or lending policies