Home extensions and second storey additions are becoming a trend, not only in Perth, but across Australia. We have detailed many reasons for this trend on our blog, but another one is becoming prominent. With the constant rise of the price for buying another home, stamp duty is becoming more and more of a detriment for many buyers.
For example, a visit to a typical online stamp duty calculator shows that an “average” home costing $540,000 in the Perth market would cost the buyer $19,665.00 in stamp duty. So, any time a buyer changes homes, it costs around $20,000 just in stamp duty to do so. That is in addition to any other costs, such as paying the commission to sell your old home, any fees for ending your old loan early or taking out a new loan.
How to Tell What to Do
Home extensions and second storey additions often cost less than you would spend selling, buying and moving. They often enhance your home’s value by more than you spend on them to. A homeowner who renovates to add more space to a home and holds it a few years almost always turns a profit if he or she turns around and sells the home.
If you are deciding what to do, here’s how we can help. Call us and find out how much a home extension or second storey addition might cost. Award winning home renovation designer Max Sardi can take a look at your current situation and come up with a reasonable estimate.
Then, see how much it would cost you to find another home with as much space as you require. Find out how much you can sell your home for and how much the new home would cost. Then, subtract all expenses such as moving, lender fees, council fees, stamp duty and any other expenses you can think of.
We think you will be pleasantly surprised with how economical a home extension or second storey addition can be, especially in a volatile market like Perth. Worse yet, what happens if the Perth property market moves like the markets in Sydney have?
The Sydney Situation
In Perth, the housing market has been flat for about a year. In Sydney, however, it has exploded. According to Robert Moerman, who runs a firm in the Sydney area that offers home renovations and second storey additions like we do, the number of homeowners choosing to renovate instead of moving qualifies as a “surge.”
An “average” home in Sydney is approaching $1 million. The stamp duty on an “average” home in Sydney is approaching $41,000. Mr Moerman points out that while stamp duty hasn’t risen, the housing prices have risen so much that it has increased the cost of stamp duty proportionately.
Check With Your Council
If you decide that you can save time, money and hassle with a home extension or second storey addition, the first thing to do is to check with your council. Make sure it is OK for you to renovate your home. There may be regulations or limits that dictate whether or not an extension or a second storey addition is the right renovation for you.
In addition, you should also make sure you aren’t under any neighbourhood or land estate restrictions.
What Next Level Extensions can Do for You
Whether you need a home extension or a second storey addition, Next Level Extensions can provide it for you. Led by award winning home renovation designer Max Sardi, we have more than 70 years’ combined experience in providing the finest in home renovations to the Perth area.
We have so much experience that we know how to provide exactly what you need while keeping your local council and neighbourhood association happy, too. We can tell you whether your home will handle a second storey addition or if it needs more structural work. We are experts at turning your current home into your dream home. And it won’t cost you a dollar in stamp duty.
To learn more, call us today: 1300 948 094.