Whilst building a new home or buying a new home can seem like the easy way to get the home you want it is important to look at the costs involved!
These costs remember do not go to your new asset… they simply disappear.
Real Estate Agent Costs: In selling your old home and buying a new one you will incur costs to real estate agents for advertising and their sales commission when the sell your old home. Say $16’000.00
Finance and/or Home Loan costs: Are there costs involved for establishing or changing your home loan from one property to another? $ unknown.00
Stamp Duty: When you buy a new home you will be required to pay stamp duty. This is currently around $24,000.00 for a $500K home.
Removalists: When moving home there is the cost of moving your furniture and belongings to your new home. A quality removal company providing a complete pack and move service could be substantial. Say $5,000.00
Miscellaneous Costs: What will be the cost of canceling or moving all of the monthly services that you have for your home including the internet, foxtel, telephone, home alarm monitoring, etc. Say $ 2,000.00 plus your time.
Emotional Cost: This has no dollar attachment. This is purely friend’s network, neighbors, schools, stress etc.
So that’s about $47,000.00. To the government and real estate agents.
Is your new home perfect?
Home extensions / additions are a great way of gaining valuable space without having to move.
In most cases, pending the scope of works, the family can live in the home through the extension process.
All the money spent goes to the improvement of the asset and if the right extension is done will add to its re-sale value well above the cost in years to come.