Extending vs Moving: What Each Option Actually Costs Australian Homeowners
Being a proud owner of a home in Australia can take years of saving and effort to achieve.
And while owning even just a single home is an accomplishment in and of itself, there may come a time when you’ll have to move out for work reasons or expand the house to accommodate new members of the family or for your own personal desires.
If you're struggling to decide whether to extend your current residence or move out altogether and start anew, you’re in the right place.
This article will provide you with some insights on the pros and cons of each option to ensure you can make an informed decision on the matter.
Let’s jump straight into it!
When is Extending The Right Move?
Extending your home can be a practical decision when you believe that you’ve outgrown your current space. There must also be available unused space in your property to accommodate an additional renovation project.
That said, extending isn’t something you should do on a whim, especially if there are better options out there. Here are some circumstances when extending your current home is the right move:
You like your current location
You have enough land
You have family members who have obligations in the area
Your home layout has renovation potential
Moving is not a financially feasible choice
You have justification to stay in your home long-term
The local property market is appreciating
You need specific house features that your current one has
If several of these circumstances fit your current situation, then it may be a viable decision to undergo a renovation project.
That being said, if you’re struggling financially, the good news is that there are pathways you can consider to amass a lump sum of cash immediately, such as by taking out a personal loan from a financial institution. See how Westpac personal loans work for more details on how you can get money to fund a renovation.
The Costs Associated With Extending A House
While extending a house is not as expensive as buying a new one, it still entails quite a large share of expenses.
Here are some fees to consider when planning a house extension:
Design and architectural fees: Cost for architects and draftspeople to make plans.
Structural engineering: Assessments and layout calculations made by engineers.
Building permits: Council fees and approval costs.
Site preparation: Demolition, excavation, and site preparation work.
Building materials: Concrete, steel, insulation, plaster, timber, and other construction materials.
Plumbing: Plumbing for sinks and toilets, both outdoor and indoor.
Flooring and roofing: Floors and roofing materials for the new project.
Kitchen and bathroom fittings: Fixtures, cabinetry, appliances, benchtops and other specialised finishes.
Contingency funds: Emergency funds in case of construction delays or need for material restocks.
The final cost can vary depending on the scale and complexity of the project. But usually, it can cost about $2,000 to $4,000 AUD per square metre.
For example, a 40m² extension could cost approximately $80,000–$160,000. This can be higher, of course, depending on whether you’re using premium materials or need additional professional fees and permits.
When is Moving The Right Move?
While extending your home is viable, moving to a new home can make more sense in certain situations, primarily when your current property no longer meets your household’s evolving needs.
Moving out gives you room to start anew, granting you more freedom to enhance your space and layout however you want.
Here are some instances when moving is the right thing to do:
You and your family have outgrown the current home
Your current property has no more land to extend
An extension is not financially viable
You want to change your current location
Your current home is falling apart
You want a different house structure
You don’t plan to stay in your new place long-term
Moving out is naturally a hectic situation, and it entails a major lifestyle shift. As such, it’s essential to consider your own internal motives before setting out on a move to ensure that what you’re doing is right for you.
The Costs Associated With Moving
Just like extending your home, moving out can cost you quite a fortune. In fact, moving out generally entails a higher cost, particularly if you have to purchase the home from scratch (much less so if you’re renting).
Here are things that you’re expected to pay off before undertaking a relocation to a house you’ve purchased:
Stamp duty: This can range from a few thousand to ten thousand Australian dollars. It’s a government tax paid when purchasing a property.
Real estate agent fees: About 2-3% of the sale price.
Conveyancing and legal fees: About $800-$3,000 for legal and admin work.
Building inspections: Around $300-$1,000 in fees.
Mortgage fees: Depending on the loan deal you’ve arranged.
Removalist costs: Could range from $500-$5,000 depending on the scope of the project.
Furniture: New furniture and appliances must be accounted for, which can reach beyond a few thousand dollars.
Utility connection: Temporary electricity and gas fees may involve connection or relocation fees.
Typically, total moving costs can hit anywhere between $50,000 to $100,000 on top of the house’s original purchase price. And with usual house prices costing around $1 million or more in key locations across major Australian cities, it’s not unheard of for these costs to set homeowners back quite a lot of money.
In any case, we hope that we’ve helped you understand the difference between moving out of and extending your current home. All the best in figuring out what’s best for you and your family at your current stage in life!
Disclaimer: This content is general information only and is not financial advice. It does not consider your personal circumstances, including your objectives, financial situation or needs. Independent advice should be obtained before making any financial decision. Any references to third‑party products or websites are provided for general information only.
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