Should you renovate or move?

Many growing families face the renovate-or-move dilemma when their family home becomes too small to provide them with the space they need.

Money reader Jenny has this problem: “We bought our two-bedroom home as a couple.

Now, seven years on, with three children under six we are bursting at the seams. We love where we live and have the land to add to our home, but we’re a bit daunted by the thought of renovating.”

The big plus of renovating is it saves a lot on moving costs, which can add up to $50,000 to $60,000 once you take into account selling expenses for your old home and stamp duty on the new one.

This money can go a long way towards your renovations.

But of course poorly planned renovations can more than eat up any savings made by staying put.

The first step is to decide what extra accommodation you need now and in the future.

The good news for renovators is costs only rose 1% in the December quarter says Archicentre, the residential arm of the Australian Institute of Architects.

Documenting exactly what you plan to do and the finishes you will use will also give you the information you need to price the renovation.

Remember, if you are adding to your home you will need proper plans drawn up to submit to your local council for approval, so at some stage you will need professional help anyhow.

If you don’t know any good architects Archicentre can be a good place to start.

A design concept from Archicentre will be provided by a qualified architect and include:

 An existing condition plan

 An architect’s design concept including plans and elevation

 Recommendations about materials and finishes

 Itemised opinion of probable cost

 Recommendations on how to get it built

 Technical information

It’s a good start to successful renovations and will cost $720 to $1980 depending on the size and scope of the job (see www.archicentrre.com.au).

You might also decide to hire the architect to supervise the build and this will cost usually around 10% to 15% of the value of the work.

Some people are able to oversee their own renovations but it does take time, energy and expertise that most of us do not have.

And remember, with major renovations time is money, especially if you have to pay for alternative accommodation while the work is being done.

Also keep in mind renovating is usually quite stressful, so try to time it so it does not coincide with times when you are likely to have more to do than usual, such as the start of a school year or a busy time at work.

Money Magazine's February 2010 issue is out now. Subscribe now.

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