Do I sell or shall I stay and renovate and upgrade

It’s easy to get caught up in the booming market and in the excitement of selling your home and using the profit to buy a bigger one. You need to explore the process of selling and buying; it could cost you more than upgrading your existing home. - Selling and buying involves substantial transaction costs and money spent on transaction cost does not buy you more house. Every time you move to a new home you are changing your lifestyle and if you are scaling up, your lifestyle costs may increase. If relocating frequently and use all your financial resources towards your lifestyle, your standard of living drops in retirement.

(Please see the costs of buying and selling as well as cost and charges on a building loan)

Before your make a decision consider the following:

A renovation can be as simple as installing new flooring or be a major undertaking that includes enlarging the space and replacing all fixtures and finishes. Once you start a renovation, your life is disrupted and there’s no turning back. Thorough planning will help you to develop a realistic understanding of the work to be done and the costs involved. However, every situation is unique, and with the help of experts to do a thorough investigation, find the problems and procure the best solutions.

Ensure that the current market value plus cost of the renovations should not be more than 25 % higher than the average property prices in the area and be sure not to overcapitalise. The danger therein may be difficult in finding a buyer who is prepared to pay you, your asking price in line with the total value of the property. Decide what a potential buyer would like to see in your property and avoid cheap additions. Renovations that add most value to property are upgrades to the public areas such as the kitchen, bathroom, living room, lounge and entertainment areas.

Whether you are selling, buying or staying, renovating your house is definitely the best option to ensure that your house lives up to its highest potential. Leaving the mess just as it is, devaluates your house and this results in a poor market related price for your property. Poor layout, inadequate lighting, cramped spaces, outdated fixtures and old cabinetry are common complaints of buyers and homeowners.

It is important to clearly identify the features you want in your renovated house. Just as important is a thorough pre-renovation inspection to identify any existing problems.

Size and design

The existing house may be too small or poorly laid out. How much do you need? Is a cosy living area important? Is there adequate storage space? Does the house meet the needs of everyone in the household including anyone with special needs, extended family and guests? Plan thoroughly before you start. Sometimes the simple reorganization of the space will solve many of the shortcomings of older houses. Consider an addition or adding space from adjoining areas to meet your space and function requirements. Use a professional architect to help you design a plan to best meet your existing and future needs.

Fixtures and appliances

may be worn out, inefficient or outdated. Do the existing fixtures and appliances have years of useful life left? Is there adequate general and task lighting? Choose efficient fixtures that will reduce water and electricity consumption. Update lighting so that it provides the brightness that you need. Compact fluorescent light fixtures are four times more efficient than standard incandescent bulbs. Make use of skylights in darker areas of your house. Old fixtures may have to be replaced later and the new fixtures may not fit into the spaces allowed. This may involve further modification of cabinets or room layout. Do your homework, don’t realize that you should have replaced the old bath after the renovation. It’s too late.

Cabinets and countertops

finishes, hardware may be outdated, need repair or replacement. Are existing cabinets or countertops damaged? Do you like the style of the cabinets and countertops? Is there enough storage and workspace? Install additional cabinets or countertops to meet your needs. Consult with expert to organize storage and workspace more efficiently or plan a whole new kitchen

Structural problems

There may be problems that require structural changes or repairs. Are there any existing structural deficiencies in this area or nearby areas of the house? Do any structural walls or lintels need to be removed and is installation of new windows or doors needed? Are the walls, ceiling, floor or basement areas well insulated and air-sealed to provide a comfortable energy efficient space? Carry out a complete inspection before you start. Seek expert advice. Repair, strengthen or replace structural components so they can carry the new loads. Structural deficiencies can lead to cracked finishes, floor vibration, bowing or displacement of walls, floors or roof structures and possible structural failure. Exterior walls that are poorly insulated and not air-sealed will lead to continued high-energy costs, possible condensation problems and discomfort in the living space.

Moisture

The floor, walls, roofs or finishes may be unsightly or damaged due to moisture problems. Is there visible mould growth on any surfaces? Are there any water stains? Is there blistered or peeled paint? Is the grout cracked or missing? Has there been condensation on windows, wall or ceiling surfaces? Determine the source of the moisture that is causing the problems. It may be from building or plumbing leaks or from condensation of humidity on cold surfaces. Insulate, air-seal and use windows and skylights to provide warmer inside surface temperatures. Repair or replace all deteriorated finishes or structural components. Unsolved water damage problems will continue and lead to further deterioration of the building or newly renovated areas. Mould growth caused by excess moisture can be a serious problem.

Plumbing and electrical

Many older houses don’t have enough electrical outlets and circuits. Older plumbing and plumbing fixtures may include lead or galvanized steel piping. Is the electrical service adequate for the number of outlets and circuits required and for future expectations? Does the existing plumbing service work well? Is there adequate water pressure? Do the drains flow quickly? Are there any leaks or evidence of water damage? Are there any lead or galvanized steel water pipes? Are there major source for leaks. Have a professional electrician assess the electrical service and your needs. Upgrade and repair the electrical service and wiring as required. Repair any plumbing leaks and upgrade the existing service as required. Equip outlets with ground fault circuit interrupters to prevent shocks. Replace any lead or corroded metal water pipes. An undersized electrical service can lead to circuit overloads and the constant jockeying of countertop appliances. Inadequate or leaky plumbing will cause ongoing inconvenience. Leaks can lead to mould growth and major problems. Even minor leaks around plumbing joints; gaskets and sinks will damage new materials. Lead piping and corroded metals can contaminate water.

Heating and ventilation

Older houses often have inadequate ventilation or heating systems. The area may be poorly insulated and have a high degree of air leakage, two factors that lead to high-energy consumption.

Finishes

Older finishes may be unattractive or not durable enough to withstand the daily wear and tear. What is the condition of current finishes? Do they need to be replaced because of wear or styling? -What finishes will be durable enough for the intended use, for example countertops, floor covering and wall finishes? Decide what finishes need to be repaired or replaced. Do your research. There are many new and different products on the market. Seek assistance and advice and prices. Choose products that are designed to meet specific needs e.g., water resistance, durability or cleaning. Improper installation of finishes will void the warranty and may provide unattractive results. Low quality installations and finishes will be with you as long as you own the house. Rather renew them than to live with them.

Outbuildings, Garden & Security

Inadequate security and sub-standard outbuildings are a safety hazard. Outdated gardens do not compliment a new renovation. Will an irrigation system make my life easier? Are my outbuildings practical? What differences will new paving and fencing make to my house? Are my security options adequate for the area that I live in and do I have peace-of mind? Decide what style of garden fits your dwelling with the help of a landscaping expert. Install a quality irrigation system to ensure a flourishing garden. Convert garages into flat lets and build-on new garages to your needs. A cosy lapa in the right spot will property enhance your valuable. Seeks specialists in steel fencing, garden walling, gate automation and CCTV systems, which ensure optimal security for your family. A newly renovated house with a dull garden does not do the trick

Tips on Renovations

Revamp your bathroom with two basins, a shower and a bath; include skylights, ceramic tile floors and ceiling fans. Keep the emphasis on cleanliness and spaciousness in the kitchen adding functionality with dual sinks and cooking stations, and cosmetic improvements such as under-cabinet lighting, marble or granite countertops and ceramic tile backsplashes. To add space, consider a walk-in pantry or breakfast alcove. To enlarge you family room you may face sacrificing other spaces (rooms, closets) to create one. To enlarge the space, try lowering the floor, opening the ceiling or expanding out with box-bay windows. Add roof windows to your bedrooms to offset the add-on appearance. Expanding your living area with a deck or two.

Ensure that quotations are not based on estimate per square meter, but detailed quotations. The cost of building and cost of finishes can vary widely depending on the project, so you could be given a quote of R 9000 and a quote of R 5000 a square meter for the same job. By receiving detailed quotations you can make proper comparison between quotations. With taking up further bond there is bond registration cost to pay as well as bank fees, such as valuation fees. (Please see costs)