To buy old and renovate, or save for an extra year and buy new/newer…
It is such a great question and a dilemma I am sure we all have when throwing up our options.
Well, the big bang theory taught me that we will know the answer by simply flicking a coin.
Heads – renovate; tails – save. If it lands on one and you are disappointed you will know it is the wrong decision, conversely if you are overwhelmed with excitement then you know the path!
Short of this, however, what might help the decision?
Benefits of Buying new
Consider if you are eligible for the First Home owner Grant. This is a $20,000 kick start when you buy new or build a property. Not often would you find property values increase by this in 12 months, so saving might just be in the lead.
Consider your plans for the property, here are our top 3!
- Plans for an investment property?
A great value of building new is that you maximise depreciation on the property. Depreciation is treated as a non-cash expense which is brilliant for not only your back pocket, but also tax return. They also traditionally mean less maintenance and greater desirability to renters (but not always!)
- Your Forever home?
Often, we fall into the trap of creating our forever home as a forever home. But our lives change and we introduce all new wonderful things; pets, children, sometimes even have our parents move back in! So, my answer might be strange, but I quite like the idea of having your renovator, something that can change as your life evolves.
- Future Sale?
If you are considering selling the house, do your research early. You won’t always be spot on, but what is stopping you from asking the local agents a few things. Find out:
- Are there other local new developments?
- Do renovated properties or new sell better in the area?
- Find out what needs to be done, without over capitalising (spending too much on the property)
By living in a property and selling later you may even be eligible for owner occupier tax concessions on your profits! The hard work does pay off!!
Are you willing to wait?
Remember, when you build a house you get the thrill of settling your land, and then begins the 3 months of waiting as your slab becomes and house and house a home. During this time you still have mortgage repayments and rent.
But, you also get to pick and choose, create your dream! (Just watch out for the costs and always have a contingency).
A bit of Fun
Renovating can be a bit of fun, a lot of hard work….but at least a bit of fun.
I remember fondly days and nights of beer, music and paint as we transformed our house into a home. There isn’t many things that rival that sense of accomplishment.
All in all though, let me leave you with this little bit of guidance; if you remove the pressure to make a decision, the decision will find itself. You will know when you are ready, but more importantly you will know when you find that perfect house. Make the most of every day and don’t rush the dream, you won’t lose it 😊
- Date - August 1, 2017