COVID-19 has seen us all spend a lot of time at home. If all that time has convinced you that your home is too small for your needs, here are 3 reasons why you should extend rather than move.
Reason 1: You’ll probably get less for your home if you sell it now
The Melbourne property market has been hit harder than any other city in Australia by the economic impact of the COVID-19. Melbourne property prices have dropped by 4.6 percent since the pandemic hit in March. It doesn’t make financial sense to sell your home to solve your space problems in a buyer’s market.
Reason 2: You can save on buying and selling costs
Not only will you get less money for your home if you sell it in the aftermath of COVID-19, you’ll also be up for both selling costs (e.g. real estate agent and conveyancing fees) and buying costs (e.g. stamp duty and conveyancing fees).
These additional selling and buying costs can cost you tens of thousands of dollars. They are costs you won’t have if you extend instead.
Reason 3: A $25,000 federal government grant is available before December 31
One of the federal government’s responses to the economic impact of COVID-19 has been to introduce the HomeBuilder Scheme. This Scheme provides eligible applicants with a tax-free $25,000 grant to substantially renovate a home (or to build a new one).
If you want to do a renovation/home extension, you need to meet all of the following requirements to be eligible for the HomeBuilder Scheme.
- You must be over the age of 18.
- You must be an Australian citizen.
- Your income must have been less than $125,000 (if you’re single) or less than $200,000 combined with your partner’s income (if you have a partner).
- You must sign a contract to do a renovation valued at between $150,000 and $750,000 between 4 June and 31 December 2020.
- Work on your renovation must start within three months of your contract date.
- Your home must be valued at less than $1.5 million.
You can apply to the State Revenue Office for the HomeBuilder Scheme. But be quick, this grant is only available for a limited time.
Reason 4. You can increase the value of your home
A well-designed home extension can add significant value to your home. It should be thought of as an investment rather than a cost.
How we can help
At Garden Studios in Melbourne, we are experts in home extensions and clever space design. We will seamlessly build on the foundations of your home to create the space you need. We’ll take the time to understand your situation and we’ll provide you with the right design advice to solve your living space problems. We also design and build high-quality garden studios (granny flats) and home offices.
Contact us today for an obligation-free chat to find out more about how we can help you!