WHAT DO YOU REALLY NEED OUT OF YOUR HOME?
At NZ Proud, we specialise in extending and renovating Kiwi homes to help families maximise the enjoyment of their existing space. Over the years we have helped hundreds of families transform their homes, and the right answer isn't the same for everybody, it's always based on your own affordability and lifestyle needs. Read on for our advice on how to fast-track the best way forward with the most value.
With your home being your most valuable asset, selling and moving is generally a last resort as you’re selling and buying in the same market. This means you may still need to find more cash for the next property and will likely need to renovate what you’ve purchased.
What's more important to most people is the return on investment. Renovating adds value to your home, and it's likely to cost less upfront compared to building new so you won’t need to borrow as much. However, the result is what's most important and regardless of renovating or building, you’re still going to have an asset that will grow in value over time.
The real question is what do you really need out of your home within your budget?
Answer yourself the following questions:
- Over a period of time between 5-10 years what are you going to need out of your home? (Kids growing up or babies on the way, changes in your work life, parents moving in soon etc.)
- What are the primary things you need out of your home for your lifestyle? (Open plan living for entertaining, lots of functional outdoor space, a second bathroom facility, home office, double garaging, etc.)
- Where do you need to live geographically? (Close to school and amenities, a large private section, close to work, etc.)
- How much equity do you have?
- How much can you afford to repay on a mortgage?
We find answering these questions for our clients fast tracks the best way forward. Our customers end up with the most valuable result when they renovate, providing they already love where they live, they have established a life in their existing home, and what they need meets their budget. If you were to buy a section and build a new home you’ll end up with a great result with the house, but generally, you’re in a new location and have acquired more debt. To consider more about what a home extension is going to cost, you can read more here.
You may be thinking, what value is there in renovating your home? Here are our top reasons and tips:
- If you do a full design and build extension/alteration you’ll gain huge value in a modern new home vs. the other properties in your neighborhood which makes your home more valuable at resale compared to other older listed homes. More value also equals greater equity.
- When you purchased your home there were sure to be aspects of it you loved which you can retain when you upgrade everything else you want to change.
- If initially your budget may be a bit tight, complete a stage at a time. For example, update some of the existing spaces you’ll keep before you extend.
- If you're doing things in stages, focus on the spaces you use most first like bathrooms and kitchens. You’ll be able to enjoy them sooner at a lower upfront cost and if you do decide to move on you’ve still added value to your home for resale.
- Consider that if you are able, completing a large-scale extension, or alteration all at once will save you money in the long run, and allows us to collaborate on the design.
- During any renovation update the things that are dated and need maintenance like interior/exterior paint, window joinery, insulation, heating, and ventilation. To reduce home maintenance, increase sustainability and improve your comfort.
One incredibly important step in the process is to ensure you have partnered with an experienced renovation specialist who has the level of expertise to ensure the design and build process best reflects your budget and creates the most value. NZ Proud completes hundreds of renovations regularly and also partners with Pou Architecture, a cutting-edge architectural studio who work in-house with our team to create innovative solutions to maximise the function and enjoyment of your home.
In summary, it's not all about money. Whether you renovate or build new, you’ll generally get a return on your investment financially, but the best return on your investment is how your home delivers on the needs of the family.
Building a new home is great when you’re in a position financially. Renovating your old home brings something back to life, generally at a lower upfront cost and you can retain the lifestyle you have already built for you and your family.
If you're needing any support regarding your decision to renovate, move or build get in touch with our team today.