Get on the right reno page

By Mitch Gaynor HOMEOWNERS

who are planning to renovate or build a new home should carefully consider the factors involved in their decision.

Upgrading or renewing bathrooms and kitchens, as well as performing easy repairs, such as fixing fences, adding new carpeting, resurfacing flooring, and decluttering, can add value to a property.

However, the total cost of a renovation can be more expensive than anticipated, with additional expenses such as planning fees, architectural drawings, environmental impact statements, and rental costs during renovation.

These days interest rates play a huge role in determining how high you can aim with your renovation dreams.

With rates on the rise, it’s important to consider the impact they will have on your monthly repayments.

For example, a one percent increase in interest rates on a $250,000 mortgage can add an extra $140 to your monthly payment, or nearly $50,000 over the life of the loan.

And although recent inflation figures show it may be tempering, it is still high and so it’s important to factor in the possibility of future rate rises.

This means taking a long-term view and considering how changes in interest rates may affect your ability to make mortgage payments in the future.

Homeowners should be honest with themselves about the true cost of a renovation and consider the long-term staying close to work or school. Those who are downsizing or enhancing the accessibility of their homes may be eligible for tax breaks if they renovate to divide the family home into a smaller space or add a self-contained granny flat. However, if the granny flat is leased out, it may be considered income-producing, and the homeowner may not qualify work options may also be important considerations.

Homebuyers should be cautious when considering buying new highrise apartments due to potential costly defects that may become apparent over time.

Ultimately, there are no easy answers, and homeowners should consult with