Scenario: Let’s say you and your spouse are planning to become parents shortly. You own a wonderful and modest sized house in Perth which you planned on making your home for a long while. It’s a wonderful little house, with custom fittings, a nice back garden and a kitchen with modern appliances. In short, your dream home – and all within your carefully planned budget.
Life throws you a curveball a few months later. You find out your new family addition is actually triplets. You look around your modest home and think – This isn’t enough space for all of us! Your first thought is to move to a larger home, but will you be able to even afford it?
Many times, families find their home no longer suits their needs. Fortunately, no matter what your personal situation, moving doesn’t always need to be the answer when you require more space. Here are some reasons why a home extension will trump the possible monetary outlay and headaches of buying and moving into an entirely new house.
Pricing and budget considerations
When buying a new home, the deposit can be all the way up to 11% of the purchase price. Many new buyers need at least a deposit of 5%, say mortgage brokers. Your finances could also take a hit just from the miscellaneous expenses. Upgrading from old appliances, buying new furniture and the like could also hit at your savings, so having a detailed budget will help you be prepared before taking the step of buying a house.
You will also need to budget ahead to cover stamp duty bills and lenders mortgage insurance, if you plan to borrow more than 80% on the price of the house.
There is also the consideration, should you choose to sell your current home, of carrying two mortgages until your old house sells, not to mention the selling costs and costs of moving your household as well. This is where you should take a look at extending your existing house – which in the long run can be much less of a headache financially.
Do your due diligence
Doing thorough research before leaping into the home buying process is one of the most important things you’ll need to do. Banks and lenders will need to approve you for a loan, so they will need to assess your creditworthiness and finances.
As a help, you can find tools on the internet that assist you in budgeting for buying a home. Mortgage brokers and your accountant, if you have one, are also helpful in figuring the various expenses involved in buying a new home.
If you do choose to extend instead…
That dream home you always wanted – even if it exists in some form already – can be realised with home renovation. Whether you expand upward or outward – or just expound on the usefulness of a particular room – your needs will be well suited.
Imagine the money you can save by extending and improving your home. You won’t have the worry of upheaving your household, paying agent fees or searching for the right home.
You won’t have boxes to pack, stamp duty to pay or spend time waiting for your old house to sell.
When it comes time to extend your home
Again, draw up a budget – this time, for renovation costs. You can risk spending more on renovations than what the house will be worth if you decide to sell down the road. Keep your budget within the same range that other renovated homes sell for in your neighbourhood. Do some comparisons of those homes to get an idea of what you could sell your home for.
Choosing a reliable builder
The builder you choose to do your home improvements should offer personalised service by giving you a fixed price contract detailing what is included in the costs. Successful and satisfactory renovations are dependent on reputable builders and skilled design by a competent architect. Make certain to ask for references from the builder’s other clients.
As with any kind of build, you will need planning and building approvals for any structural adjustments. Levels of approval include those from the local authority as well as surveyor and engineer inspections.
Let us do the groundwork for you
It’s entirely possible to double the size of your home without moving or purchasing a new home. Next Level Extensions have completed many second storey home renovations to homes in the Perth area. We take pride in our quality workmanship and personalised service. If it’s more living space you need, we’re confident we can take your home to the ‘next level’!
Contact us on (08) 9240 5888 or by email: enquiries@nextlevelhomes.com.au.
