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Should I move or renovate – money and disruption

Renovate bathroom home money disruption
  • Is staying in your location really necessary?
  • Do you have the budget?
  • Does the floor plan need changing if I relocate?
  • How much temporary disruption to my lifestyle can I handle?
  • Will renovations increase your home’s value?
  • What’s your long-term plan for the home?
  • How does moving affect property taxes?
  • What effect will this have on my mortgage?

Once you’ve answered these questions, you may be leaning more toward one option over the other. If you’re still unsure, here are some pros and cons to both choices.

Relocation Benefits

  • Fresh start: You have the opportunity to begin new! The chance to meet new people, and move away from something you don’t like. It may be the opportunity to change your everyday scenery.

    person standing in front of a new house, with a smile on their face
    www.pinterest.com

     

  • Extra money: Perhaps you want to move, but don’t want to sell. You can use the house as a source of income by renting it out.
  • Renting: Maybe now is the time to consider renting? See our other article relating to the benefits of buying or renting a home.
  • Personal gain: Maybe the house you’re leaving is too large or too small now. Relocating gives you the option to find the house that suits your needs now.
  • Moving: When you move, clutter and useless items can be discarded.

Relocation Disadvantages

  • Taxes: Generally, you don’t pay capital gains tax if you sell the home you have previously lived for more than a year. However, if within this period, or if its not your primary residence, you will be up for some taxes if you sell the property. Additionally, you can’t claim income tax deductions for costs associated with buying or selling your home. Most states charge stamp duty when you buy a property, including a home.
  • Moving: When you relocate houses, it is known to be a very stressful activity. Something that may not be needed at this time in your life. There are costs to loading everything into a truck; whether it’s for moving across the street or town. Moving causes disruption in our lives until we develop a new routine.
  • Selling: If you decide to sell your home, the process could take months, leaving you with more expenses. Money can be “tight” if you’re stuck in this position.

Renovation Benefits

  • New look: Remodelling allows you to recreate an old space into something new, by giving it new life.

renovated kitchen with stainless steel appliances, granite countertops, and white cabinets
www.limitlessrenovations.com

  • Cost efficiency: If you could consider taking on one room at a time, there is no large upfront cost. You can update what you need so that it fits within your budget. You don’t have to renovate everything, just what you want. There’s also the chance to take on some of your renovations in a DIY fashion.
  • Personal touch: Your individual needs are met when you renovate. Whereas buying a new home may have a few features you want, but not all the features.
  • Familiarity: You already have a comfort level for the house and how everything operates within.

Renovation Disadvantages

  • Key issues: If your home needs a complete overhaul, wouldn’t it just be easy to buy something already built with most of your needs?
  • Do the numbers stack up:  Is the investment worth it after you crunch the numbers, particularly when you are looking at renovating the whole house?
  • Money difficulties: If you don’t have the cash, remodeling can require a homeowner loan, which generally is loaned at a higher rate than a regular home loan. You would need some equity or security. It may be difficult to get approved.
  • Permits: Depending on what you’re changing in the house, you may have to get building permits particularly if some structural changes are needed.
  • Construction: Remodelling means

Closing Summary

When deciding whether to stay or go, there are a number of factors to consider. These include your budget, your needs, and your long-term plans for the home. If you decide to stay, you may want to consider renovating your home. This can be a cost-effective way to update your home and make it more comfortable and stylish. However, it is important to be aware of the potential costs and disruptions involved in renovations.  If you decide to move, you will need to consider the costs of moving and selling your home. You will also need to find a new home that meets your needs and budget. Ultimately, the decision of whether to stay or go is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances.

Here are some additional tips for making your decision:

  • Talk to your family and friends about your decision. They may be able to offer you valuable insights and advice.
  • Do your research. Read articles and talk to experts to learn more about the pros and cons of staying or going.
  • Make a list of your priorities. What is most important to you in a home?
  • Get a financial advisor. They can help you understand the financial implications of your decision.

         

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        Relocating for work

        relocating for work home

        The decision of relocating for work can be very hard one to make. Some people are even known to turn down great jobs just to avoid the entire relocation process. However, moving for a job is not as hard as it seems, it all depends on the resources you have. Lucky for you, we have some great applications, tips, and necessities to make your relocation process as easy as possible. We will give helpful facts for finding a home, schools, ways for transport, and setup. So, don’t turn that job offer down yet, check out these resources!

        Finding a Home

        Finding a home can be incredibly daunting. Even when searching close to home, finding a home may be highly complicated. If you are presented with a great job in faraway lands, this aspect of finding a home may be very scary, but do not fear! There are all kinds of resources that will help you do this. We will touch base on those in just a moment. First, you will need to put “finding a home” on the top of your list of priorities; as it may take a while to do so.

        If you are looking for an actual house, there are useful applications for your phone that simply present prices and locations. These apps prove to be significant resources:

        Australia:

        realestate.com.au

        domain.com.au

        homesales.com.au

        US:

        RedFin.com

        Zillow.com

        HomeSnap.com

        Although looking for a house is great, most people being offered a job somewhere in a different city should consider finding a quick fix and go with an apartment. Getting your foot in the door will cause less stress and will allow you to get acclimated to your new city. I will share some great apps for making this happen, as these resources will show you where houses are located, their prices, and so on. Usually, the people posting available apartments are account holders themselves, so going through these great apps will guarantee a faster response opposed to an online platform such as Craigslist; although you should search through that website as well. Here are my favourite applications for finding an apartment in the US. I have relocated a lot in my life, although not for work, nonetheless, these resources have proven very helpful.

        Zumper.com

        Apartmentfinder

        HotPads.com (this one is especially useful and convenient)

        RadPad.com

        Rent.com

        In Australia realestate.com.au and domain.com.au can be used for both apartments and houses.

        If you are moving to Australia alone, it may be worth checking in at some of the universities for their shared accommodation links for the area you are moving to. Alternatively, check out flatmates.com.au for more options. For other locations there are plenty of Apps and online, so do your research!

        Schooling

        Now that you have figured out where you are going to live, the next important priority on the list is to find your school. If you have children, and finding a home close to the school weighs highly on your priority, this maybe the first thing you research, before you start to look for a home to live. If you or your children are not yet enrolled in school and wish to be, then start the process researching for schools.

        If you are already in school and want to continue your study, ask your faculty if they offer online classes, as most education centres do these days. If online is not your thing, start early by asking your teachers what schools they recommend in that area. Make sure that your credits will transfer, for some private Universities do not allow this. If this is your case, then your only option is if that school also exists in the city you will be moving too, or online classes. You don’t want to have to start over from the beginning, do you?

         Transport

        Your means of transportation are vital when living anywhere. These days, the flexibility of online transport platforms, such as Uber and sharing ride platforms give you plenty more options. When researching, think if it is worth having a car? Just because you have always had one, does not mean you may need one now. In cities like San Francisco or Singapore, a car is more trouble than it is worth. I should mention that owning a small car in Singapore can cost you as much as $100000 in capital expenditure and a huge cost to maintain. So not purchasing a new car or selling your car and using the excellent public transportation that the city offers could be ideal.

        Either way, research transport routes and options before you move. The first day or so after you have arrived in your new city, explore these routes for an entire day and get familiar with the area, preferably before your first day of work. Remember first impressions are lasting ones. If it is the opposite, as in the city calls for a car regarding convenience, start familiarising yourself with highways and rush hour times. It would be a shame to lose the job that you are relocating for.

        Setup

        The final thing you will need to do is setup your new pad. However, this can’t be physically done until you arrive in the new city, but you can start brainstorming for a fast setup early on. Great, cheap stores that make any home a home, and affordable, are Target, Big W, Fantastic Furniture and the famed IKEA. For those on a super strict budget, something I am very experienced in when it has come to me moving, I recommend Vinnies and the Salvation Army.  You can find authentic, quality decorations at those thrift stores for a unique setup. Furniture, paintings, bed settings. The sky’s the limit!

        One other thing to look out for particularly in Australia for those on the tightest of budgets is the famous council clean-up day. Furniture is commonly thrown away which residents don’t wish to keep. They will place these items out on the street for the local council to remove. It is amazing what people throw away.  It is unwritten but is OK to take from these piles. I have some things in my home from the clean-up day and feel a sense of pride that it’s been recycled and put to good use!

        I hope these tips and resources have proven to be helpful for your exciting move! Best of luck to you, and if you have already landed the new job, congratulations!

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        Should I purchase or rent a property?

        Should I purchase or rent a property?

        Purchasing a quarter-acre block home has been a long-held Australian dream. However, in today’s property market, is that dream finally over and more to the point is it something worth pursuing? Yes, homeownership sounds exciting and provides a sense of freedom and belonging, however, the reality of owning your home may be out of reach for many Australians.  It begs the question, is long term renting a better option?  The answer, surprisingly, isn’t so clear.

        Now the issue of “affordability” is a significant one, but that is not the topic of the post. Now I am not a property expert, and I don’t have a finance background.  I have however dabbled in the real estate market over the last ten or so years as well as being a long term renter, so this gives me an opinion, which I’d like to share. Here are my top 3 priorities to consider when deciding, on whether to RENT or BUY in today’s market:

        1.      Expenses from property

        As I mentioned, I’ve lived on both sides of the fence as a renter and a homeowner. One of the important things to consider when deciding to go down the path of renting or buying is the upfront and then ongoing expenses between the two.

         Renting    

        Upfront Costs – You have to consider moving costs, your bond and most tenants would be expected to pay some form of rent in advance (2wks to 1mth).

        Service Connections – Internet/phone, Electrical and Gas.

        Ongoing Costs – Includes Rent, General Services and home/content insurances.

        General maintenance – Is typically covered by the owner, including partial water, any broken fixtures or fittings and pool maintenance. However, some items can fall under the tenant’s responsibilities such as garden upkeep and replacement of fly wire, etc.

        Buying

        Upfront Costs – Similar to renting you have your moving costs, however, a deposit for a home is a significantly greater expense (Typically +10% property value). You also need to consider expenses such as Stamp Duty, Lender Mortgage Insurance (LMI) as well as Banking Fees, Legal Fees, Pest and Building Inspections. All of which can be as much as 11% of the overall property value. Service Connections are much the same between buying and renting.

         

        Ongoing Cost – include your general services but also include, Local Council rates, additional Insurances. If you purchase within a complex of other dwellings such as a unit, or duplex or gated community, you need to consider strata type costs as well.

        General Maintenance – Can be as much as 5% of the value of the property over the long term and if you own a unit and it has a lift, pool or gym, this can be significantly more.

        While service connection charges rarely differ, ongoing and general maintenance costs for a buyer tend to be more, especially if in a unit. Renters can get out of paying some of these expenses as the property owner covers them. In some states, landlords are forced to pay for average water usage by their tenants.

        So in summary from an expenses review, hands down renting win’s this comparison. It is going to cost significantly more in upfront costs to buy a home.

        2.      Commitments and limitations

        In this section, we take a look at the commitments and limitations required for renting or buying.

        As a renter or buyer, we all have bills to pay. However, the responsibility placed on a tenant can offer more flexibility. A person renting can choose from short term month to month leasing options or lock into a 6 or 12-month lease. They also have the added flexibility of moving on if that property doesn’t work out financially for you anymore.

        On the flipside, renters also have greater limitations in many cases. The ability to have pets, smoke, or make simple improvements such as add pictures to your wall are at the mercy of the property owner.

        As a renter, you also have to open your doors to rental inspections, safety checks and if the owner decides to sell, then you’re left with no choice but to move out.

        The commitments required when purchasing a house also vary. You have the benefit of being able to fix some of your costs for the long term such as your mortgage repayments, which can if planned carefully offset the volatility of fluctuating banking fees. However, the majority of homeowners are locked into that mortgage for 25- year term.

        Renters too face challenges with rental increases occurring more frequently, often moving up and rarely going down.

        On average purchasing, a house requires greater commitment and a well thought out strategy.  On the homeownership side, there are fewer limitations on what you can do with your property. While renting can be disruptive as you’re at the mercy of the landlord and limitations can be many. In my view home ownership wins this battle.

        3.      Wealth Creation

        So who’s better off when we think wealth creation? Not so long ago the saying “rent money is dead money” was often used. Isn’t that the same for interest repayments?

        What if we work on the assumption that our renter is using those savings made on their upfront costs and ongoing costs wisely and investing that money in other interests, such as term deposits or the share market?  Often known as Opportunity Cost, a Renter has more flexibility in their wealth creation strategy because they can move their money based on market fluctuations. Whereas a homeowner is locking their ability to create wealth from a fixed asset, their home.

        History shows that property (land) should increase in value over time. Industry trends suggest that over a ten-year period, property value could almost double.  Even a well thought out strategy is not 100% fool proof as who knows what is going to spring up in your neighbourhood to boost or reduce the value of your asset. Things to look out for are, infrastructure projects, shopping facilities, new schools, or council zoning changes. These could all have a different effect on the value of your property. If the value of your property goes up, there may be options to use some of that equity for other investments.

        My recommendation is not to purchase a home purely as an investment. You should be considering emotions and feelings. Unless you buy at the absolute bottom of a lull in the market and your home ownership strategy is for the short term, then avoid this way of thinking altogether.

        That’s not to say that wealth cannot be created from your home, it could form part of your long-term strategy for your retirement. However, it shouldn’t be your #1 focus for purchasing a home.

        So who wins the wealth creation race I hear you ask? It’s hard to go past renting again unless you’re buying a property purely for investment purposes. As a tenant paying rent, you have the opportunity to spread your risk, it’s flexible, you can invest in property if desirable, or you can put it elsewhere. Purchasing a home shouldn’t just be seen as a wealth strategy as it defeats the purpose of buying a home. Just like Darryl Kerrigan said in The Castle “It’s not a house, it’s a home, and a man’s home is his castle”.

        Summary from renting or purchasing comparison

        So you’re probably thinking, 2 out of 3, renting compared to homeownership win’s the battle. As I said at the start, the answer, surprisingly, isn’t so clear.  As shown here, it is not just a financial decision which is generally what people compare. At the end of the day, it’s your decision. Whatever category holds the most weight for you may swing you in a particular direction. While there are solid pros and cons on both sides, ultimately it’s a personal decision best made after carefully crunching the numbers, looking at your lifestyle and what compromises you are prepared to make. You can always rent, while you go through your pros and cons. As a current renter and property investor myself, I’ve chosen to continue renting because renting makes sense to me at this point.

        While there are so many things I’d love to do with the house I rent to improve it, that doesn’t bother me that I cannot. Because I love the location and it works in with my budget, I love that it’s a flexible arrangement, and if I wanted to move tomorrow, I could. I also love that I can make choices about where I invest my spare cash or spend it.

        On a final note, when the time comes, and I’m in a position to buy my castle, I won’t hesitate to do so.

        Author: Clinton Smith

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        Diversifying your investment portfolio

        investment portfolio diversify

        Investment portfolio diversification is a tried and tested technique. It includes reducing risk by spreading investments across a changing range of assets, firms, sectors and geographic places. Clearly, diversifying your investments isn’t a complete buffer against financial losses. Nevertheless, it remains an important strategy for minimising the danger that regularly helps investors to reach their financial targets.

        Why does a diverse investment portfolio improve your likelihood of growth and achievement? An investment portfolio including investments with little or no relation to each other is known as a low correlation coefficient (LCC). LCC reduces likelihood of  impact of negative worth fluctuations in any one business, sector, country or asset. Diversifying your investment portfolio enables falls in the value of one investment to be cushioned by rises in the value of another.

        Here are the crucial ways by which you can diversify your investment portfolio:

         

        1. Diversify Your Business Investments:

        It’s clearly common sense not to invest all your money into just one company. Little is certain in the present economic climate as well as the most flourishing of businesses can endure a fall in value or even fold. Always spread your investments across several businesses and contemplate investing in firms that run in different market sectors. It’s critical to conduct comprehensive research into any company you are considering as an investment. It’s always best to seek the guidance of an independent financial advisor before making a decision that is final.

         

        1. Diversify Your Sector Investments:

        Purchasing in a range of distinct sectors brings the same advantages as investing in companies that are different. In the present economic climate, there have been peaks and troughs in an extensive range of sectors. To provide your investment portfolio to a pillow against your entire portfolio losing worth, spread your investments with little correlation across industries. For example, if your investment in an organisation within the education sector suddenly experiences a dip in value, a rise in your investment that is gold could compensate for this.

         

        1. Diversify the Geographic Places of Your Investments:

        An excellent way to minimise the effect of stock market moves is to spread your investments across separate regions and different countries. It’s quite a danger to place all of your faith in the fiscal policies of its ruling authorities and the economic stability of a country that is single. Again, it ’s critical to conduct research into the stock markets of different countries and get expert advice from an independent financial advisor before making any investment choice. Before choosing to invest abroad, as some developed markets are more volatile than others calculate the risk entailed, and can be affected by systemic threats.

         

        1. Diversify Your Assets:

        It’s shrewd to have a good mixture of varying asset types within your investment portfolio, as it distributes danger. You will find many different types of assets, the primary kinds being bonds and shares, which often have a low correlation. Discuss with your independent financial advisor the best way to blend the asset types. They’ll have the market knowledge required to spread the danger throughout your portfolio. You should decide the degree of risk you are willing to take according to your financial aims. Are you close to the time you desire to draw upon your invested cash? Then maybe it’s time to reduce the risk in this area. You may feel inclined to take greater risks, in case you are planning a long-term investment strategy. Make sure to work with your financial advisor to create a portfolio tailored to your personal financial goals.

         

        1. Prevent Over Diversification in your investment portfolio:

        Finally, diversification can protect your investment portfolio from worth changes in related investments. However, there is a delicate balance to over-diversification and being diverse enough to realise gains. You want to have enough investment in a business or sector to profit from any increase in value. It’s an instance of reaching the appropriate balance and preparation your investment portfolio carefully with your financial advisor.

        Author: Diverse Investor



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        Identifying Unique Business Opportunities: 4 Key Questions to Consider

        Recognising unique startup business opportunity

        Launching a successful business requires more than just a brilliant idea; it demands the ability to recognize and seize genuine and unique opportunities. While the pursuit of entrepreneurial dreams is admirable, it’s crucial to approach potential ventures with a critical eye, ensuring that your concept possesses the potential for long-term success. To assist you in this process, here are four key questions to consider when evaluating business opportunities:

        1. Does This Already Exist?

        Before diving headfirst into a new venture, it’s essential to examine whether similar businesses already exist in Australia. If so, carefully analyze how your approach differs from the competition. Can you identify areas for improvement or untapped potential within the existing market? Consider introducing innovative solutions or catering to underserved customer segments to set your business apart.

        Even if your initial idea doesn’t directly correspond to an existing business, exploring the success and shortcomings of established Australian companies can provide valuable insights. By understanding what works and what doesn’t, you can position your venture strategically, avoiding pitfalls and capitalizing on emerging trends.

        2. Why Do People Need This?

        The foundation of a successful business lies in understanding and addressing a genuine need. Before committing to any venture, thoroughly evaluate whether your product or service offers tangible value to your target audience in Australia. Can it solve a problem, improve efficiency, or enhance their lives in some way? If the answer is no, it’s crucial to reconsider your concept.

        A business idea that fails to satisfy a genuine need is unlikely to gain traction or generate sustainable growth in the Australian market. Remember, true entrepreneurial success stems from addressing real-world challenges and providing solutions that make a positive impact on customers’ lives.

        3. What Is The Target Consumer or Customer?

        Identifying your target audience is paramount to crafting a successful business strategy in Australia. By understanding the demographics, preferences, and needs of your ideal Australian customer, you can tailor your offerings and marketing efforts accordingly. Creating a customer avatar, a detailed representation of your target persona, can help you visualize and empathize with their needs.

        Consider factors such as age, gender, socioeconomic status, and lifestyle habits when defining your target market in Australia. This will enable you to develop products and services that resonate with their specific interests and pain points. A unique business approach is built upon a deep understanding of its Australian customers, ensuring that every decision aligns with their needs and aspirations.

        4. Are The Resources There?

        Launching a business in Australia requires a realistic assessment of the financial and operational resources at your disposal. While a successful venture can eventually generate revenue, the initial costs associated with starting a business can be substantial. Carefully evaluate the upfront investments necessary to establish your company, including equipment, supplies, marketing expenses, and potential staffing needs.

        Equally important is considering the scalability of your business model in Australia. As your venture grows, will you have the infrastructure and resources to accommodate increased demand without compromising quality or customer satisfaction? Anticipating and planning for these growth challenges will ensure your business remains viable and sustainable in the long run.

        By carefully considering these four key questions, you can effectively evaluate the potential of business opportunities in Australia and make informed decisions that pave the way for long-term success. Remember, genuine entrepreneurial triumphs arise from identifying unmet needs, understanding your target Australian audience, and strategically managing your resources.

        Reference:

        Australian Government – Business: https://business.gov.au/: https://business.gov.au/


        Author: Startup business owner