When you need more space for a growing family should you buy a new home or consider renovating? Both are costly, time consuming and stressful. We take a closer look at renovating versus buying in Darwin with local property developer and Urbex General Manager Wayne Rex.
Is it cheaper to buy or renovate in Darwin?
The latest HIA dwelling forecasts indicate that residential housing construction across the Territory is up this quarter on last year. Many Territorians are realising it’s often cheaper to build a new home than buy and renovate, thanks to several Government incentives. The Herron Todd White March Review also highlighted that Darwin is in a rising market and the cost of existing homes is increasing with plans for renovations for many families now unachievable.
What are the costs of renovating?
To undertake a renovation you need to account for permits and council fees, builder and contractor charges, material costs, design and drawing charges, and in some circumstances rent. You also need to weigh up if you will manage the project yourself.
What do I need to know before I renovate?
Renovating is noisy, dusty and dirty work. Can your family live through the mess and disruption? Renovations often take longer than expected and cost more than budgeted, and at the end you may still not have the home of your dreams. Finding short term accommodation elsewhere in Darwin while the work is done could also be a challenge. The latest property data from Herron Todd White suggests the rental market is tightening and this trend is expected to increase. Whether you build or renovate, always check a builders’ work before negotiations.
What else should I consider?
Do your sums and think carefully about your family’s future needs. Be careful not to over capitalise on a renovation and consider if it will meet all your family’s needs in years to come. At Urbex, we design communities with flexibility and room for growth that are both appealing today and for generations to come. Our neighbourhoods have the latest innovations in green spaces and shaded areas with greater energy efficiencies.
The Month in Review, released March 2013. HIA Dwelling Starts Forecasts, released March 2013.