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What Paul Clitheroe thinks about buying new vs renovating

Posted by Sandra Brewer on Oct 21, 2015 10:27:44 AM

Listening to the radio this week we heard an interesting market commentary report from Paul Clitheroe. He was discussing the benefits of selling your home and buying a new one, vs renovating.

"Sell or Renovate? If you’re running out of space, do you renovate or move?
Interesting question. Selling up and buying a new home, in this country in particular, is really expensive, and if you love your home but you’re pushed for space, maybe renovating’s the answer.
As a rule of thumb, you’ll need to allow nearly ten percent of the cost of your new home to cover things like legal fees, stamp duty and all the issues with selling your existing property.
That can be tens of thousands of dollars.
Now, renovating, well here you can spend all of that money upgrading your home. And setting a strict renovation budget is really the key. Now, that said, I’ve had a couple of goes at renovations and guess what, the old saying “it’ll take twice as long and cost three times as much”, has applied to me.
So, be tough"

In a previous blog post we noted that stamp duty in WA is $43,134; so that's a lot you can spend on renovating.

Paul_Clitheroe

Pictured: Paul Clitheroe

Source:  http://www.ipac.com.au/ - Specialist Financial Advisors

Article credit: http://www.ipac.com.au/wp-content/uploads/2015/10/TM_19-23OCT_5127_sell_or_renovate.pdf

Topics: Cost of renovating