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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John Cahill
March 7, 2024
Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
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Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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