Post By Rocky
Move vs extend wwyd?
Hi all I figure a lot of us on here have a bit of life experience to offer sooo...
We currently live in a regular 1970s middle of the road type house with 4 bedrooms and a big rumpus style storage area downstairs that isn’t legal height but does have a big room that could be a bed room plus bathroom etc. We have had homestay students with us in the past and it suits us. They don’t bother us, we look after them well and our kids like them. Plus it is around 300 pew week tax free for each student.
Now that I am aware of the potential downfall of using a non legal room as a bedroom (huge, potential insurance risk being null and void), I don’t feel comfortable putting someone in the downstairs storage room which means either move or extend. We can take up to two students tax free which is what I intend to do. So we’re going to need an extra bedroom. Our kitchen is v small so if I am going to build an extra room I’d add in the kitchen as well. We’ve been quoted$90k for this extension which would give us the extra bedroom, en-suite and larger new kitchen. That’s do-able.
other option is to move to an already 5 bedroom house. We would need to spend a fair bit extra to justify the move and get the genuine 5 bedrooms. Cost of moving alone would be approx $50 k. But we’d get a much better house but of course would need to invest another approx $400k in it to get it.
Also, we currently have quite a nice spot close to everything and would have to move further out which I don’t want. We are in a quiet st that is 4 doors down from a nice gym, cafe, bakery, medical centre etc plus close to work. If we move we’d likely be investing more in the actual house building and less I. The actual land.
I always thought renovating wasn’t worth it but what do you think?
Latte, you don't mention what state you are in on your profile, but not sure if you have added stamp duty I nto it as? $50k seemed light if stamp duty was counted and you had a $400k increase. On $1m in NSW stamp is $40k, on $2m stamp is $95k, very approximate from memory
Thanks for the reply we are in qld and one other thing I forgot to add that def plays into the decision is that we have the 44 cent feed in tariff from solar that makes about 4K pa passively on our existing house which we would lose if we moved. I have factored stamp duty into it. Any other thoughts?
Originally Posted by 338
Not from me. We just don't know enough to make an informed comment. We don't know if you are speaking inner capital city, capital city or regional, if the present or proposed property is above or below the median for the area, etc, etc. If you have a friend who is a local real estate agent might be worth chatting with them, as they would know your situation. Good luck with your decision
Originally Posted by latte1978
Also consider age and likely time at home for your kids, if they are already mid/late teens, and you are close to whatever they intend for further education I'd probably renovate, as it wouldn't be too many years before you're empty nesters with a big house miles from where you've put down your roots in the community. However if they are younger and you can see them being with you for at least 10 years, and you won't be driving hours/miles for school, sport or social activities seriously consider the move.
Also consider the likelyhood of students wanting homestay in the new location, you might not have many willing to commute if you're not close to a uni.
Hope thats something more to think about.
Thanks for the replies yes we are right in the drop zone for international students and not too far from units for our kids who will be at home for at least another 10 or so yes I think! Mid to inner north of Brisbane. Costs to move are expensive and at least this way we would get back some of the 90k outlay
Originally Posted by coffee_mum
Don't discount the value of your current location. It would be hard to quantify (unless you dabble in economic analysis) however moving to another location that has longer commutes, less-desirable schools etc. could be detrimental overall. Also it may be less desirable to attract the homestay students. Obviously you know your own circumstances better than anyone, however no harm in asking on here for everyone's two cents!
I think it is difficult for anyone else to analyse your best course of action without knowing a lot of detailed information about your personal situation.
There are probably a set of key questions that help in making a decision like this and they will include personal preferences, investment issues, real estate considerations, and your long-term plans.
The obvious one is regarding whether to risk over-capitalisation of an existing property that you may want to leave in your 50s or 60s. It is sometimes impossible to get your money back on an older house in an old suburb.
I see some folks sink $100K into an older house with serviceable additions that are nevertheless out of synch with the rest of the property (ugly car-ports out the front are a good e.g.) as are raised houses with new rooms created underneath.
When your kids leave home you suddenly realise that you don't want the extra space and your ageing physical capacities don't want steps at all, so you need to think about how long you will want to be in a place before you sink a lot of money into it. Likewise with the purchase of a much bigger house, although if you go upmarket in a good area you hopefully stand a good chance of maintaining/increasing value -although of course neighbourhoods age and end up full of rentals - which affects the desirability of your property (not much you can do about that)
If you see yourself earning a lot of money from your tenants over say, the next 10 or 20 years then both options are "money earners" and offset any potential 'value' downsides.
Good luck with your decision.
thanks - hoping for. 20 year money earner!
Originally Posted by Rocky
At PV, FV or AV?
Originally Posted by latte1978
To move or not to move?
Fwiw. The stress levels of selling, buying and moving house are right up there with losing a loved one, getting divorced or being imprisoned. Stay put, renovate instead. Having to deal with tradesmen and bureaucracy (permits etc) should be enough stress for anyone.
Ps whatever you buy will come with unexpected, always unwanted, surprises.
Ps 2 been there, done that. I'd prefer getting poked in the eye with a burnt stick.
What about house clutter. I am a bit of a handyman and I know I have hardware out the back somewhere, but too hard to find, for the current project and find it easier to go and get new stuff at Bunnings. Staying in the same place for 35 years means I miss out on the regular forced declutter by moving. Such is life, advantages and disadvantages.
Originally Posted by OCD