Upgrade or renovate? How one growing family decided with UNO

It's an issue confronting growing families – borrow to renovate their home or upgrade to a property that better suits their needs straight away?

David and Samantha Jack needed to face up to an issue confronting many couples as their families grow. Should they borrow to renovate and make their home more family friendly or sell up and upgrade to a property that better suits their needs? The Jacks bought their home in Sydney’s Northmead in 2002. David Jack says it was a classic “worst home, best street” and the plan was to do it up over time. They realised about four years ago that with three growing kids – now aged 16, 14 and six – they needed to decide on whether to renovate or upgrade. “We’d done some improvements over the years but nothing structural,” he says. “It got to the point where we had outgrown the house.” The Jacks looked at their options. They were happy with where they lived – their four-bedroom home was on a good-sized block in a nice suburb close to schools and just 30 minutes from the CBD. Buying elsewhere might mean moving further away from the city or doubling their mortgage, but it would save them having to live through a major renovation, which was likely to take at least a year. How much can I save by refinancing?Use UNO's calculator to estimate your savings. Calculate Savings

Relocation loans

If the Jacks were looking to sell and buy elsewhere, they might have considered taking out a relocation loan, says Tim Bowcock, head of mortgage services at UNO Home Loans. Relocation or bridging loans help borrowers buy a new home before selling their existing property. UNO Home Loans’ Tim Bowcock“Relocation loans are a great way to manage the transition from a current home to your new home,” he says. “They’ll help you deal with the peak debt during the transition period without impacting your lifestyle. “The key thing is to plan ahead and make sure you’re with a lender that offers these types of products before you look to buy.”

Renovation options

As a sounding board, the Jacks called in David’s former schoolmate, Walter Nanni, a former real estate executive who had previously helped them buy and sell. He is now a buyer’s agent with Cohen Handler. As the Jacks were looking at borrowing to renovate or upgrade, Nanni suggested they could use the capital in their home to buy an investment property. If they could get an investment property at the right price in Sydney’s hotly contested market and hold it for long enough, they would be able to sell it at a profit and help pay off the mortgage on their newly renovated home. Another option they might have considered was renting a bigger house while they renovated. Not only could they avoid living in rubble for a year, they could use the capital in their home to borrow enough to cover the renovation costs as well as buy an investment property. “This might have got them ahead financially but it wouldn’t have suited their lifestyle,” Nanni says. How much can I borrow?Use UNO's calculator to estimate your borrowing capacity. Calculate Now

What they decided

In the end, with the help of a loan organised through UNO Home Loans, the Jacks decided to borrow enough to renovate only. The decision was made easier because Samantha is an interior designer; her business, SLJ Interiors, regularly has clients who are renovating their properties. Samantha Jack says it’s much easier to know how to get the most out of renovation if you have lived in a house for a long time. “You get a better idea of how you use it,” she says. “If we’d bought in another area, we would have got something that I would have wanted to change straight away.” The Jacks didn’t want to spend more than $150,000 to $180,000 on the renovation but it ended up costing about $220,000. But this doesn’t matter, David Jack says, because the home suits the family perfectly. “It’s a cracker of a space to live in. It was done on a shoestring but with a clever use of materials. “Samantha put so much effort into the design. It doesn’t look like a renovation; you’d struggle to see where the ‘old house’ ended and the ‘new house’ began.”

Difficult choices

Nanni says he often comes across families faced with a similar decision to the Jacks, perhaps needing to choose between borrowing $300,000 to renovate or $500,000 (or more) to buy elsewhere. Cohen Handler’s Walter Nanni“It’s a dilemma for anyone,” he says. “You’ve got three kids and you’ve got to provide for them – you’ve got schooling and other things to consider, and you think you need a bigger home. You might have a nice block of land in a top location, but three bedrooms might not be enough if each kid needs their own room, for instance.” Staying means living through the renovation, which can be tough for a family with small children and pets. But deciding to move can add financial and emotional pressures, Nanni says. “You’ve got to go through the process of selling your home – and you can’t buy until you sell,” he says. “There’s a lot of insecurity and uncertainty, especially today in Sydney where there’s not a lot of stock. Families are staying put because they’re saying ‘What if we don’t find something? What if I’m priced out of the market?’”

Selling and buying costs

Nanni says those who opt to sell and then buy need to consider the many costs involved, such as agent fees and moving expenses. Then there’s stamp duty. “That alone is $100,000 [in NSW],” he says. “With that $100,000, Dave and Sam have gone a long way to rebuilding their own home. “What they did makes perfect sense. They have capitalised on their own home and minimised their costs. It all comes down to personal choices.” Need a home loan?UNO. The new way to get a better deal. Get StartedBook a call in with UNO

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October 31, 2024
Mike Parsons handled our refinance of our home loan with ease and a depth of knowledge that ensured we got the best deal possible for our situation. We didn't have an easy one to solve for with my husband being self employed and we were consolidating finances as well for a car loan. But Mike handled it all for us and once we had provided him with all the documents we literally didn't have to do a thing after that, it was so easy and so quick we are super happy with the experience! Top notch! Highly recommend!!
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I have gone through 6 different mortgage brokers prior to meeting Andrew Wyers. He is the most patient mortgage broker I’ve encountered and also the most knowledgable about the bank’s lending process and products available. It took me 1 year to find a house I was happy with and Andrew was always there to assist with any issues or questions I had; he always return my phone call, even on the weekends or when his away on holidays. The loan process was smooth and I had no complications. The process with Andrew was again nice and easy, he took the time to find and put together the right package that was suited to my situation. I have recommended Andrew to my family & friends and everyone have been grateful and completely satisfied with his service.
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September 23, 2024
I had not dealt with Scott or UNO before finding them on the internet. Even as an Australian citizen living and working overseas, I knew obtaining a loan would be difficult. However, Scott went above and beyond what I expected from a mortgage broker. I genuinely don’t think you could find another company that works as hard as they did to get my home loan approved. I cannot recommend them highly enough. Everyone I dealt with at UNO were extremely professional and helpful. If you are looking for a broker, you would be mad not to give them a go. Thanks to Scott Wilkinson, Dalby Bajwa, Jena Lasquite and Andrew Pacini. Shaun.
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I had an outstanding experience with Tian Liu. He was incredibly professional and attentive, going above and beyond to meet my needs. His expertise and dedication made the entire process smooth and stress-free. Tian's deep knowledge of the market and commitment to finding the best solutions for his clients truly sets him apart. He was always available to answer my questions and provided invaluable guidance throughout. I highly recommend Tian Liu to anyone in need of a reliable and skilled broker!"
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Tian Liu provided exceptional service throughout the entire process. His professionalism and keen attention to detail were evident from the start. Tian consistently kept us informed and offered insightful advice that made us feel confident in our decisions. He truly cares about his clients and works tirelessly to ensure the best possible outcome. We couldn't be happier with his assistance and highly recommend Tian to anyone looking for a trustworthy and knowledgeable broker.
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For the past three years, it has been an absolute pleasure to work with Mike Parsons. He has consistently helped us navigate commercial property loans with skill and efficiency. Mike’s timely and professional responses to our inquiries have been invaluable. We have built a strong, reliable relationship with him and eagerly anticipate continuing our collaboration in the future. We highly recommend his services.
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August 6, 2024
I am so thankful and grateful to have Scott Wilkinson as my broker. He not only looked after me every step from start to finish he gave me confidence and I was able to trust him and his expertise. My children and I are now happy in our new home and very appreciative of Scott's help. I will definitely be only having Scott as my broker from here onward as there is no mucking around and straightforward answers. Thanks again
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August 5, 2024
I am writing this summary in support of recommending Mike Parsons as a Mortgage Broker. At the time of writing this, I have known Mike for 4 years and he has executed 4 mortgages deals for me (including 2 refinances) over that time. Mike has provided me incredible service as a mortgage broker as follows : - Works painstakingly on getting the scenarios together to provide you options that optimize your position. - Works inordinate hours on the detail necessary to support the scenarios. - Mike keeps you updated on the status and progress of the applications and also helps you work through answering questions and any complexities that may arise. -In my cases, given the complexities and timings of my situations , these application processes would take many weeks to finalize . Mike never gave anything other than utter commitment and focus to getting the job done. Mike acts as a true business partner throughout this whole broker /mortgage journey. I simply would only go to Mike for any future dealings on getting a loan from a bank (and as will my kids in the future !) . There is no way a bank (I have seen anyway) would provide this kind of time nor service to a customer. You can rest assured that once Mike has done the deal, you have ended up with the most optimized position taking into account all the variables/scenarios in play. Scott Hutchinson
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