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Have you ever wanted to upgrade your home, without having to leave your neighbourhood?
Perhaps you’ve dreamed of a bigger lounge now that the kids have moved out, but you can’t say goodbye to your local coffee shop.
Or maybe your house is becoming too run down and hard to maintain, but the thought of having to look for something more modern just seems too daunting…
If you’re currently in this predicament, then knocking down your house and rebuilding, could be the answer.
There comes a point in time when the home you’re currently living in doesn't suit your lifestyle anymore.
Maybe you’re planning on starting a family and you need more bedrooms, or your kids have moved out and you want to change the layout of your home, or your home is becoming too expensive to maintain due to age.
No matter the reason, often once we decide that we want to change up the way we live, there's no turning back.
So which way do you go? Do you knock down your existing home and rebuild, or do you simply sell your house and move somewhere else?
In this article, I'm going to share some important tips and information to help you make the best decision for you and your family when faced with this situation.
Making The Best Decision For You And Your Family
One of the biggest things to consider when deciding to move house or knock down and rebuild your current home is the neighbourhood you’re currently living in and what thismeans to you and your family.
Perhaps you’re the matriarch: the mum of the household, wife and decision maker.
With so much to organise on a day-to-day basis, having the familiarity of your local neighbourhood is probably something you’re grateful for and value.
When you move house, you and your family will have to adjust to the changes associated with being in a new neighbourhood and find your way around the shops, cafes, schools, parks and streets.
Sometimes it can take a while for a new place to really feel like home when you’ve been comfortable living somewhere else.
When you knock down your existing property and rebuild on the same block, your kids can continue their familiar journey to school, remain members of the same local sporting clubs and continue their friendships with your nearby neighbours.
Another important part of the decision-making process when deciding whether to knock down and rebuild or move house, is the overall costs involved with the process.
You might think that by selling your house and moving to a new house, that you’ll be saving money because you won’t need to pay the demolition fees, construction or even rent.
However, this is where a lot of consumers get caught out…
Important Things To Consider Beforehand
Because, in the majority of cases, the cost of knocking down your existing home and rebuilding a custom home is a better investment than moving.
Consumers often forget about the high costs that are associated with moving home such as stamp duty.
Stamp duty is the tax that is payable upon purchasing a house, which increases depending on the value of your purchase but it can run into tens of thousands of dollars.
Other costs that are associated with moving house involve paying your real estate agent on the sale of your home.
Real estate agent commission percentages in Australia vary from 1.6% to 4% of the total sale price, depending on location and the amount of competition between agents in an area.
So, if you sell your house for $600,000 and your agent charges 2% commission, then you’ll need to hand over $12,000 to cover their fees.
Not only that, there are other costs associated with moving home such as, building inspections, pest inspections and advertising costs which are in addition to the real estate agent’s commission. The list goes on…
The same can be said for if you’re tossing up between renovating your home or replacing it with a brand new custom home.
Often, the best way forward from a financial perspective is to start from scratch with a blank canvas and design your home exactly how you would like to live in it.
Freshen Up Or Start Anew?
My third tip for making the best decision about whether to rebuild or move home is to consider the maintenance costs of an existing home.
New homes usually don’t require any significant repairs for at least 7 years, and in most instances, the repairs will be covered under warranty.
When you build a custom home, you have full control over the design and layout of your house which also eliminates the need for any major renovations.
When you buy an established home, you’ll always need to factor in the cost of bringing the home up to your standards.
It’s just like buying a second hand car.
There is always the risk that the previous owner got rid of the vehicle because it was becoming more and more expensive to maintain… Until it got to the point where it made financial sense to replace it with a newer model even when you take into account the depreciation.
The depreciation on a new home is tiny compared to a car and you have brand new warranties on all the components!
When you knock down your existing property and rebuild on the same block, you’re saying goodbye to the repairs that are associated with maintaining an old property and welcoming the luxury of brand new everything for your custom home.
We all know how good the smell of a brand new car is, imagine how nice it will be to live amongst that brand new smell in your own custom designed home.
Deciding to knock down your house and rebuild or move house completely is a big decision.
Where To Go From Here?
Aside from the stress of leaving your neighbourhood, weighing up the costs involved or determining the level of maintenance required for an existing house, leaving or demolishing your current home that is full of memories is always a big step.
To make the process worth it you should design a custom home that perfectly meets the needs of your family so your living environment reflects your lifestyle, without having to move from the neighbourhood you know and love.
Designing a new home can be very overwhelming and when you hear new things for the first time, it's not easy to remember everything.
Which is why I’ve put together a quick guide for you to download - The 7 Things You Must Know Before Designing A New Home.
It’s completely free, and it will help you to avoid any nasty surprises that can sneak up on you when building a custom home.
Just click on the link below and let me know the email address you'd like me to send it to.
