Keep it fond of it or state: the actual costs of sale versus renovating your house – realestate.com.au

It is the burning question that homeowners of a certain age have a face – sell and upgrade or stay and renovate?

Exclusive analysis per comparison site, compare the market, reveals that it costs at least $ 53,500 to sell a house in Brisbane as soon as stamp rights, legal costs and agent committee are considered.

Depending on the scale of the renovation project, a cosmetic renovation can reduce you about $ 33,000, but an extension for only one room can cost more than $ 250,000.

Related: Do not make any effort: Home Reno That is a waste of time

The newest Australian Bureau of Statistics data reveals that the average loan size for a renovation project in Queensland was recently just over $ 200,000.

“It really depends on the scale of the construction project,” said the market of real estate Andrew Winter.

“For example, if you have to add a lot of extra rooms/space, it can be cheaper to move, especially if you like to consider moving to a suburb where larger houses are more affordable.

Real Estate Guru Andrew Winter compares the real estate expert of the market. Image: Luke Marsden.

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More: ‘Sta Now’: Andrew Winter’s Shock Rate Cut Call

“If you are only looking for a cosmetic upgrade, you might be better off giving your kitchen/bathroom a facelift, because the costs of moving can amount to more than $ 50,000.”

Top Build Group Director Mitch Reardon charges $ 4666 per square meter to do a renovation. For a customer who only wants to add one extra bedroom to their house, he charges around $ 80,000.

A recent project in Tarragindi included an extension of 80 m², including two bedrooms, a walk -in jacket, and private bathroom, laundry and rumpus, which cost his customer $ 328,000. The median house price in Tarragindi is $ 1.5 million.

HIA figures show that the costs of renovation have risen by 54 percent in Brisbane since 2019.

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More: Renovation Nation: Five from Brisbane’s best make -overs from home

A really big renovation, as he just did on his own property in Geebung, where the median house price is $ 1.04 million, would cost between $ 1.2 million and $ 1.4 million, Mr. Reardon said.

“It is certainly at a point where some people spend as much as they originally paid in front of the house to renovate it,” said Mr. Reardon.

DIY -Friends and Renovation Team, Holly Docherty and Angie Lonergan from @Renogals, have renovated five properties in Southeast -Queensland, and simply put their most recent project on 9 Moorabinda ST, Buderim, on the market.

Holly Docherty and Angie Lonergan are best friends who take care of and nanny during the day, but spend their free time renovating houses. Photographer: Liam Kidston.

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Mrs. Docherty said they were looking for buying a renovator in Wavell Heights, where the median house price was $ 1.4 million, and adding an extension or raising the house, and two builders recently quoted around $ 5000/m².

“The price between non -processed properties and renovated has been limited in the last five years, so I have the feeling that there is very little difference that three to four bedrooms jumps, so it can actually be cheaper to sell and buy something bigger,” she said.

Mrs. Docherty said that the disadvantages of renovation were the costs to move or live the mess, and the risk of overcapitalization, but the pros were that it offered a level of adjustment, and you knew your neighbors.

“The advantage of selling is that you may be able to reduce your debt and buy it back (to the market) without debt, but the costs of selling and buying back are now enormous because house prices have risen so much and the stamp rights are astronomical,” she said.

Mr Winter said that it would probably cost a little more than the median house price of just over $ 1 million to buy a stay of four or five bedrooms in Brisbane.

“The problem with that is that larger houses are now much more costs to buy, and thanks to rising delivery and labor costs, renovating is not cheap, so that many people stay behind between a rock and hard place,” he said.

The figures from the Australia (HIA) housing industry show that the price of the typical existing house in Queensland is at least 80 percent higher than in 2019, while the costs of a typical renovation project have risen by around 54 percent.

The costs of a new building have also been shot up. Labor and building materials costs are 35 to 40 percent higher than in 2019, comparable to renovation costs.

But the price of a place of residence is around 60 percent more expensive in Brisbane, 80 percent more expensive at the Sunshine Coast and no less than 150 percent more expensive at the Gold Coast.

“So, renovations can be a much more affordable alternative for buying another new or existing home,” said Hia senior economist Tom Devitt.

Tom Devitt – Hia senior economist.

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Recent research by HIA and the Center for International Economics (CIE) shows that 41 percent of the costs of a house and land package in Brisbane are due to government tax, costs and costs.

“Renovations in an existing house may avoid this much of this, in particular the components related to policy -related land costs,” said Mr. Devitt.

“There is also a constant wish of the pandemic for larger space and facilities in someone’s living environment, making the ongoing work-of-home phenomenon, which can be easily achieved with a renovation, then try to find the exact desired living environment in a new house.”

Avi Khan, director of Ray White Daisy Hill – Akg. Image supplied.

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Ray White Daisy Hill and AKG director Avi Khan said that his team saw a rise in homeowners who chose to renovate instead of selling – even if they had a significant share profit in their property.

“Unless a homeowner is considerably upsized or moves to a more affordable area, those potential profits can be eroded quickly,” said Mr. Khan.

“Some owners also hesitate to buy and sell in the same market, especially with uncertainty about interest rates and delivery.”

Mr. Khan said that “smart renovations” became a “serious strategy for building wealth”, since the construction costs stabilize and the demand was still strong in many suburbs.

“We are just as busy giving advice from homeowners on post renovation value if we rate the current houses for sale,” he said.

“The key is to know your figures. Overcapitalization is a real risk, because not every renovation yields the return that a homeowner will expect.

“What we have discovered is that for most homeowners it is not only about selling or renovating, it is about getting closer to the lifestyle they want and to ensure that their money works hard for them.”