Why Home Extensions May be Far Cheaper Than Moving House

Thursday, 7 May 2020

As any family grows, they often find their existing home is no longer suitable for their needs. It can be an onerous situation for many families, who are yearning for added functional space yet plagued by the prospect of leaving the home they know and love. If you are considering whether to renovate your own home or commence the search for a different home entirely, here are some questions you may want to consider in advance:

What option is more likely to generate a return on my investment?

In navigating the rocky property market, there is always a degree of risk associated with the gap between purchasing a house that suits your needs, and finding an appropriate buyer for your own property. The rumours of an impending recession certainly don’t help. Will your land fetch the price you need? Will the housing market shift in the time it takes between buying a new house and selling your own? Will your property require repairs or costly touch-ups in order to be presentable for sale? These are all factors to be prepared for when considering purchasing a different house.

While there is no ‘standard’ real estate agent commission in Australia, recent reports state the average real estate agent commission rate is 2.1% for Sydney, 2.33% for Newcastle, and 2.40% for Wollongong. If your property is worth $1M, that equates to a whopping $21,000 for the commission fee alone in Sydney, which may or may not include marketing and advertising costs.

By comparison, the quote to modify your home is relatively stable and predictable, and does not change in line with the ever-shifting property market. It’s also important to note that the money spent on home extensions is an investment that could generate a healthy return, given it is likely to increase the value of your existing property.

Size And Function

What option will provide the exact space, functionality and layout you envisage?

There is no knowing whether you will find the right space for your family in the housing market, it really does depend on the supply in your desired location at that point in time. Finding and moving into a new home is a deeply personal experience. There is every possibility that you go through the motions of selling and buying, only to find that you need to undergo repairs or renovations on the new property anyway!

However, when you embark on the home improvement journey, you have full control over the design and build. The design is completely customised to suit your needs, tastes and lifestyle. This means you can ensure the project will deliver the look you want and the functionality needed for your growing family.

 

Additional Fees

What are the additional fees to be aware of?

The expense of moving house unfortunately doesn’t stop with the real estate agent. On top of this is stamp duty, mortgage registration fees, transfer fees, bank fees, building inspection report fees and conveyancing fees to name a few – it’s easy to see how the amount of money required quickly adds up. Removalist fees are another consideration, not to mention the risk of possible breakages or damaging of your possessions during the moving process.

On the other hand, when you plan a home renovation with Cubitt’s, you are provided a total quote right from the start. We believe in a transparent process, with no hidden fees and no post-contract changes.

Will you need to change schools or child care centres?

Another added expense of moving house is the money needed for new uniforms, registration fees and application fees to name a few. Avoid the hassle entirely by investing in a home renovation project. Want to save even more on childcare fees? Building a Granny Flat can instantly add value to your property, while keeping grandparents close by to mind small children during working hours.

Ultimately, there’s no place like home. A home extension project with Cubitt’s means you can stay in the home where your most precious memories have been made, and invest in your existing property, all while achieving the added space and functionality you need for the future.

Like our name implies, improving existing homes is the foundation upon which Ian Cubitt’s Classic Home Improvements was built. Our team of experts have completed over 300 home extensions and additions throughout NSW and the ACT over the past 25 years, and have the experience necessary to design and build customised solutions. We are passionate about delivering our customers their perfect living space on time and within budget, with a stress-free and transparent approach.

Talk to our experienced design consultants about your dream project today, by calling 1300 721 150 or via email at hello@icchi.com.au.

 

External resource articles:

https://www.openagent.com.au/blog/commissions-pay-new-south-wales-real-estate-agent  

https://upside.com.au/articles/selling-your-property/sydney-property/how-much-agent-fees-in-nsw 

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