Some of the more observant Craigie residents who live or walk their dog on the east side of Eddystone Avenue may have already noticed that another Craigie home came off second best in a fight against the mighty bulldozer!
The latest home to succumb to the trend was 127 Chadstone Road, which is now nothing more than a level 695sqm block complete with garden shed….no the owners are not living in the shed!
Having bought the property on 2006 the owners loved the central location of the property, however, like many first time home-buyers they discovered the dilemma of a growing family in a smaller style home.
Inevitably this dilemma leaves a home owner with 3 main options:
1. Sell up and Buy a new bigger home
Unless you have the most perfect location (for your wants and desires) this is still the option most people take. It offers you the flexibility to change not just your home but your suburb, location within the suburb, school districts, proximity to work and a whole lot more. This option also offers you the quickest route into a new bigger home.
Cost: When working out your finances you will have to factor in your buying and selling costs.
- Real Estate Agents selling fee
- Settlement Agents fees
- Stamp Duty – on new purchase
For people who love their location or current home (and the only issue is size) then extensions offer an alternative to moving home. Extensions/renovations have become more prominent in Craigie recently as several years of solid capital growth has given home owners plenty of equity to plough back into these older style homes. The main points to consider with extensions are:
Cost: The cost of extensions can be astronomical compared to the price of building a new home. This cost may not be reflected in the homes market value on completion of the extensions, leaving many people overcapitalised in the short term. While this may not be a problem if you have no plans to sell….you never know what the future holds!
- Floor Plan: Marrying an extension to an existing home is not always easy. Some work well while others are always going to look “tacked on”. Remember a good extension is one that isn’t noticeable…..especially if you would like to recoup the money you invested when you eventually come to sell.
- Living on a Building site:
* Are you going to continue living at the home while the extensions are carried out?
* How long will it take?
* Are all the trades available?
* Are you prepared for all the dust, noise and inconvenience?
- Will you move out during the Building work:
* If so, then what about security?
* Will you take all your possessions with you?
* Have you factored in lease costs if you move out?
* You have to move twice (extra cost & inconvenience)
3. Demolish & Rebuild
The third and final alternative for a bigger home is simply to demolish the existing home and rebuild from a blank canvass.
- Chose your own floor plan without the restrictions of marrying to an existing home
- Building a new home is unlikely to be much more expensive than building an extension
- All fixtures and fittings are new
- You will need to organise alternative accommodation for the duration of the demolition/rebuild – which could be costly
- Lease costs could blow out if building is delayed
- You have to move twice – extra cost and inconvenience
- You will need to ensure you are not over capitalising for the suburb or the location within a suburb. A simple way to do this is add up all of your costs including -
* Demolition costs ( approx $20k – $25k)
* Building costs
* Finishing costs
* Cost of original property – and then compare the final figure with sale prices
currently being achieved in you area
For example: The most expensive home sold in Craigie so far in 2011 is $510,000 ( a brand new home in Tremont Place) so if you demolish a home you had purchased for $400,000 and then spend $200,000 building a new home you would be over capitalised for the suburb, if however, you had only paid $200,000 for the original property then you new home would fall well within the suburbs current sale prices.
Sell & re- buy?… extend?…demolish & re-build?
At the end of the day if you need a bigger home there is no right or wrong answer.
The owners of 127 Chadstone Road decided to bull-doze and rebuild but everyone has different requirements and different ideas and therefore will make different decisions.
The only thing that I am sure about is that our urban sprawl continues to drive North, East & South – you will see more older style homes in Craigie and the surrounding suburbs being bowled over or extended….maybe not by their current owners….but it will happen, especially if the city of Joondalup draft local housing strategy is passed in the next 2 – 5 years!