Lake Properties
1) Start with your real needs — not your wishlist
People often confuse wants with needs. Start by separating them.
Needs (hard reasons to move or upgrade):
- You literally don’t have enough bedrooms or bathrooms for your family.
- Accessibility issues: stairs are unsafe for an elderly parent or someone with limited mobility.
- The house no longer supports your job (e.g., you need a proper home office or a quieter neighbourhood).
- Structural problems or safety issues that can’t be fixed affordably.
Wants (nice-to-haves that might be solved by upgrading):
- A bigger kitchen for entertaining.
- A prettier garden or better finishes.
- A pool or entertainment area.
If the problem is a true need (safety, space for family, health), that pushes you toward selling or a major rebuild. If it’s a want, renovating might be wiser.
2) Money matters — run the numbers properly
Don’t guess. The finances almost always decide the outcome.
Key figures to calculate:
- Current market value of your home (get a CMA from an agent or do an online estimate).
- Current mortgage balance and penalties (if any).
- Estimated sale costs: agent commission, advertising, transfer fees, conveyancer, inspections (usually several percent of sale price).
- Estimated buying/upgrading costs:
- If upgrading: contractor quotes, project contingency (10–20%), temporary accommodation if needed.
- If buying: deposit required, transfer costs on new property, moving costs, new bond costs (initiation fees), higher bond repayments.
- Monthly budget impact: what will your monthly housing cost be after upgrading vs after buying? Include rates, taxes, insurance, utilities.
Practical example (simple):
- Home worth R2,000,000; bond outstanding R800,000 → equity ~R1,200,000 (before selling costs).
- Selling costs 6% (~R120,000) + transfer tax and fees — realistic net proceeds matter.
- Renovation cost for the same home R300,000 might increase value by R150,000–R300,000 depending on the work — calculate ROI, but also value the lifestyle gain.
If you can’t comfortably cover the upgrade costs without stretching finances, or if selling unlocks equity to buy a better-suited home without crippling repayments, selling becomes more attractive.
3) The house’s condition and what it would take to fix it
Some houses are worth renovating; others aren’t.
Good candidates to upgrade:
- Solid structure, good location, and cosmetic or functional issues (old kitchen, bathrooms, finishes).
- Room to expand (convert attic, build out back, add a bedroom).
- Upgrades that buyers in your area reward (kitchens, bathrooms, energy efficiency, security).
Bad candidates to upgrade:
- Major structural problems (subsidence, termite infestation, severe damp) unless you have deep pockets.
- Houses where the location or footprint is the main limiting factor (tiny plot, noisy road, bad views) — you can’t renovate location.
Ask a reliable builder or architect for a feasibility quote. If the cost of making the house what you want approaches or exceeds the cost difference between staying and buying a better home, sell.
4) Local market timing — don’t try to predict, but be sensible
You can’t perfectly time the market, but you can be smart about it.
Seller-friendly market clues:
- Low inventory (few houses like yours for sale).
- Similar homes are selling fast, near or above asking price.
- Low interest rates encouraging buyers.
Buyer-friendly market clues:
- Lots of similar properties listed.
- Prices are stagnating or falling.
- Interest rates are rising, slowing buyer demand.
If it’s a seller’s market and you need to move, that can tip the scales toward selling. If it’s a buyer’s market and you want to upgrade, you might get a bargain on your next home — but conversely you might get less for your current house. Speak to a local agent for up-to-date insight.
5) Emotional and lifestyle costs — more important than people think
Moving is disruptive. Renovating is messy.
Renovation pain points:
- Living in a construction zone for weeks or months.
- Noise, dust, and loss of privacy.
- Projects running over time and budget.
Moving pain points:
- Packing and logistics.
- New commute, new neighbours, adapting to a new area.
- Emotional loss of a familiar space.
If the stress of renovation would be unbearable (young kids, elderly family members, or a tight work schedule), selling and moving might actually be less taxing. Conversely, if you love your neighbourhood and roots matter, upgrading could preserve that stability.
6) Practical red flags — when you should definitely consider selling
- You can’t afford necessary major repairs and they’re getting worse.
- Your house no longer meets the family’s functional needs (e.g., no room for a child with a disability).
- You’ve been dreaming of a move for years and small changes don’t help your day-to-day happiness.
7) Practical signs it’s better to upgrade (stay and renovate)
- Your home sits in a great location (good schools, amenities) that you don’t want to leave.
- The structural bones are good and there’s space to improve.
- After a realistic renovation budget, your monthly cost doesn’t increase dramatically and you get most of your desired improvements.
- You plan to stay long-term (5–10+ years) and can recover renovation costs over time.
8) A step-by-step decision checklist you can use now
Answer these quickly (Yes/No) — majority Yes → lean that direction.
Should I sell?
- Do I need more/less space that my home cannot give? (Yes → Sell)
- Is my commute or location forcing a lifestyle change? (Yes → Sell)
- Will selling free enough equity to buy a house that ticks more boxes? (Yes → Sell)
- Are renovations needed so extensive they’re almost a rebuild? (Yes → Sell)
Should I upgrade?
- Do I love the neighbourhood and local services? (Yes → Upgrade)
- Is the house structurally sound and adaptable? (Yes → Upgrade)
- Will the renovation cost less than the difference to buy what I want? (Yes → Upgrade)
- Am I ready to live through dust, noise, and disruption? (Yes → Upgrade)
If your answers are mixed, list pros and cons with estimated costs beside each — numbers make the decision less emotional.
9) A few smart, practical tips whether you sell or upgrade
- Get three quotes for any renovation and one for a builder/architect’s plan.
- Ask a trusted local agent for a CMA — not a “guess,” but actual recent comparable sales.
- Consider staged renovations: tackle the highest-impact rooms first (kitchen, bathrooms) to manage cashflow and disruption.
- Remember tax and fees: budget for selling/conveyancing costs and bond initiation fees for a new purchase.
- Think exit strategy: if you renovate and then need to sell, make choices that appeal to broad buyer tastes.
10) Quick timeline examples
- Small upgrade (paint, fixtures, flooring): 2–6 weeks — low disruption, low cost.
- Medium renovation (kitchen/bath): 6–12 weeks — moderate disruption, moderate cost.
- Major renovation or extension: 3–9 months — high disruption, high cost.
- Selling process (prep, market, sell, transfer): 2–4 months typical, can be longer depending on offers, bond approval and conveyancing.
Lake Properties Pro-Tip
Before you decide, do two simple things that will save you money and headaches:
- Get a Comparative Market Analysis (CMA) from a local agent — know what similar homes are actually selling for right now.
- Ask a builder or architect for a feasibility estimate for the exact upgrades you’re considering, with a 10–15% contingency.
Then compare the net outcomes: (sale price − selling costs − outstanding bond) vs (cost to upgrade + expected value gain). Don’t forget to include the emotional cost: how much is peace of mind worth to you? That blend of numbers + feelings is the honest answer to whether you should sell or upgrade.
If you know of anyone who is thinking of selling or buying property, please call me
Russell
Lake Properties
www.lakeproperties.co.za info@lakeproperties.co.za
083 624 7129
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