Australian Property Podcast Is it cheaper to renovate or move?
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Jan 3, 2026 Homeowners face a big decision: upgrade, renovate, or invest. As market conditions shift in 2026, Chris and Pete examine the financial pros and cons of each option. Discover why upgrading might appeal as interest rates ease and the challenges of renovation costs become clearer. They also share personal renovation stories and the importance of planning to avoid costly mistakes. Ultimately, it’s about balancing numbers with the value of lifestyle. Tune in for insightful advice and pitfalls to watch out for!
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Market Context Can Make Upgrading Sensible
- Upgrading can make more sense when the price gap to the next home is smaller due to market shifts.
- Lower interest rates reduce the ongoing cost of additional home debt, improving upgrade viability.
Always Budget Transaction Costs
- Avoid ignoring transaction costs when upgrading since stamp duty and agents' fees can be large.
- Factor roughly 5%+ of the purchase price into your upgrade budget for these frictional costs.
Upgrade For The Long Term Only
- Upgrade only if you plan to stay medium to long term to let time recoup transaction costs.
- Avoid frequent upgrades because repeated moves and costs quickly erode returns.