“Keeping up with the Joneses” can lead to extravagant and wanton spending, ultimately causing financial strain and stress. In today’s consumer-driven society, it is easy to fall into the trap of comparing our lifestyles with those of others and feeling the need to match or exceed them. In this blog, we will discuss the importance of breaking free from the cycle of one-upping others and embracing a more humble lifestyle. Additionally, we will provide practical tips for scaling back on unnecessary spending and achieving better financial management. Keeping Up With the Joneses The term “keeping up with the Joneses” has its origins in a comic strip of the same name that ran from 1913 to 1940, detailing the life of a family constantly envious of their neighbours – the Joneses, who have all the most avant-garde things money can buy. Australia’s position as a major economic power and its high standard of living, though, may have amped up that notion to a new level. A June 2022 study by RBA lead analyst/economist Kim Nguyen revealed that based on the latest HILDA survey, Australian households often took on more debt to at least match their lifestyle with others – even when there’s much income inequality in their general region. The loans taken were found to have been invested in “non-residential assets” such as new vehicles or stocks. To underline that problem of wanton spending, the Australia Institute’s Wasteful Consumption in Australia study noted that Aussies spend as much as $10.5 billion every year on goods or services with little or no beneficial value, but may tend to regret it later. The ABS‘ Australian National Accounts: Finance and Wealth study from September 2023 identified Aussie households as having amassed $75.5 billion in financial assets but still have $18.4 billion in liabilities, $14 billion of which were through loans. It is possible that some of the money from the loans were used for extravagant purchases. The Downside of Keeping Up With the Joneses Some people may find spending on one-upmanship stimulating, but it only benefits the sellers making money off you. In terms of financial strain, one-upping others in terms of possessions, vacations, or experiences can lead to excessive spending beyond one’s means. This reckless behaviour can quickly result in credit card debt, loans, and financial instability. They will also generate a big deal of stress and anxiety, in terms of pressure to match or exceed others’ lifestyles. The pressure to maintain appearances and live up to societal expectations can be emotionally draining, you may have seen it in other people who have been known to appear in classy parties when onlookers have discovered behind the scenes they have financial problems. Focusing on material possessions and external appearances can erode the quality of personal relationships. Genuine connections with others should be based on shared values and interests rather than material possessions. The pursuit of always having more can lead to a lack of contentment with one’s own life. Emphasising material gains over personal growth and happiness can leave individuals feeling unfulfilled. How to Avoid Keeping Up With the Joneses Scaling Back on Spending First, a well-structured budget is essential for effective financial management. List your income and expenses, including discretionary spending, and allocate specific amounts for different categories. Analyse your expenses to identify areas where you can cut back. Focus on non-essential items and services that don’t align with your values or contribute significantly to your well-being. Some bits of financial advice may include a so-called “One-In, One-Out” rule – for every new item you wish to purchase, get rid of another existing item you have. Whether you have to donate that item or sell it, this approach can help prevent unnecessary accumulation and lead to a more mindful lifestyle.  You can consider adopting a minimalist lifestyle, focusing on quality over quantity. Owning fewer possessions can lead to greater appreciation for the things you do have and a more clutter-free living space. Delayed gratification is also a chance to at least hold off on spending. Give yourself a set period, such as 30 days, to reconsider the purchase. Often, the initial desire fades, leading to wiser spending decisions. Financial Literacy With the need to gradually scale back from one-upping, you can face what to do next. Start by investing time learning about personal finance and money management. Understand how to save, invest, and make informed financial decisions that align with your goals. If you feel overwhelmed by your financial situation, consider seeking advice from a financial advisor. They can provide personalised guidance and help you develop a realistic plan.  If your family is just as burdened as you are with extravagance, they must be included in any serious financial discussions and decisions. Creating a collective understanding of financial goals and responsible spending habits can foster a more supportive environment. Embracing a Humble Lifestyle Take some time to reflect on your personal values and priorities. Understanding what truly matters to you can help shift the focus away from material possessions and societal pressures. You can also start expressing gratitude for what you already have, and accept that others may have been more fortunate to afford what they got .  A humble lifestyle is usually centred on drafting yourself some clear and achievable financial goals, with the end goal of supporting yourself, not on comparing yourself to others. Part of achieving those goals may include avoiding impulse purchases.   If part of your one-upmanship includes social media showcases, consider reducing your exposure to social media platforms that trigger feelings of inadequacy or envy. The social media comparisons are even true of certain people who openly show off what they have and the praise comments range from “you deserve it” to “how to be you?” Conclusion Breaking free from the cycle of one-upping and extravagant spending is crucial for achieving financial stability and personal contentment. Embracing a humble lifestyle based on personal values and priorities can lead to healthier relationships, reduced stress, and a greater sense of

Australia, like many other countries, experiences regular fluctuations in petrol prices. These fluctuations are known as petrol price cycles, and understanding them can help consumers save money on fuel expenses. In this comprehensive guide, we’ll delve into the mechanics of petrol price cycles in Australia and provide you with ten valuable tips to help you save on fuel costs. What is a Petrol Price Cycle? Petrol price cycles are periodic fluctuations in fuel prices that occur in most Australian cities. These cycles are influenced by a range of factors, including changes in crude oil prices, refining costs, and market competition.  Take note of the varying cycle periods in urban centres. According to the Australian Competition and Consumer Commission (ACCC), petrol cycles in Sydney, Melbourne, and Brisbane averaged five weeks to change, while Adelaide’s takes two weeks. If you’re in Perth, you might expect rapid cycling every week. In its new price monitor evaluation for January 2024, the ACCC took note of varying jumps in average prices per litre from any time during the last four months of 2023 to as late as Australia Day weekend 2024. In Sydney, the price peaked to past $2.05 a litre on 20 December 2023 to gradually slip down to $1.76 on 20 January 2024 but has picked up close to $1.95 after the Australia Day weekend. Melbourne bowsers registered an average of $2.10 on Christmas Day 2023 and gradually went down to $1.76 by 22 January then climbed to $1.92 in late January. For Brisbane, the average price stood at $1.80 a litre ten days from Christmas, but mostly went south of that over the holidays, going as low as $1.72 the day after New Year’s Day. The next three weeks saw it climb to as high as $2.10 on 22 January then mellowing to close to $2.05 after the celebrations. In Adelaide, the peak average price originally stood at $2.06 a litre on 17 December but it had a smooth drop to as low as $1.66 on 4 January then had a major spike over the next four days to $2.05, followed by a slightly fast dip to $1.67 by January 18 – but spiked again at close to $2 by 23 January. If you’re in Perth, you might expect rapid cycling every week – current data shows a consistent pattern of rapid price increases (from $1.65 to close to two dollars a litre) then a sudden drop and trickle. This rise and dip occurred at least six times from before Christmas to the Australia Day weekend. The Phases of a Petrol Price Cycle Petrol price cycles typically consist of three phases: Understanding these phases is crucial for consumers looking to save on fuel expenses in Australia. Now, let’s explore some tips that can help you make the most of these cycles. Petrol-Saving Tips Monitor Fuel Price Trends Stay informed about the current phase of the petrol price cycle in your area. There are various apps and websites that provide real-time information on petrol prices, allowing you to plan your refuelling strategically. Fill Up During the Low Point When prices are at their lowest, make sure to fill up your tank, to ensure possible fuel savings over time. It may be possible to invest in jerry cans that enable you to stock up on more petrol plus stabilisers to ensure they do not grow contaminated while being secured in cool locations. Use Loyalty Programmes Many petrol stations offer loyalty programmes that provide discounts or rewards for frequent customers. Take advantage of these programmes to maximise your savings. Consider Alternative Fuels Explore alternative fuel options like ethanol, LPG, or electric vehicles if they are suitable for your needs. These options can be more cost-effective in the long run. Maintain Your Vehicle Regular vehicle maintenance, including proper tire inflation, clean air filters, and regular servicing, can improve fuel efficiency and save you money on petrol. Carpool and Share Rides Consider carpooling or ride-sharing with friends, family, or colleagues to split fuel costs and reduce your individual expenses. Plan Your Routes Efficient route planning can help you avoid unnecessary detours and reduce your fuel consumption. Consider using GPS apps that provide real-time traffic updates to choose the quickest routes. Drive Smoothly Avoid aggressive driving behaviour like rapid acceleration and hard braking, as they can significantly decrease your fuel efficiency. Practise defensive driving strategies and use the vehicle’s cruise control capability if it has one to maintain constant speed, especially on the highway – even if the road has very few vehicles, do not get tempted with flooring the pedal due to the presence of speed cameras.   Reduce Idling If you are parked or waiting for an extended period of time, do not keep the engine on idle. Idling consumes fuel unnecessarily and contributes to higher expenses. Combine Errands Minimise the number of trips you make by combining multiple errands into one outing. This reduces the distance you need to travel and, consequently, your fuel consumption. Petrol Supplies in Australia Apart from understanding petrol price cycles and employing fuel-saving strategies, it’s essential to have an overview of fuel supplies in Australia. Australia relies primarily on imported fuel, making it susceptible to international market fluctuations. As a result, fuel prices are directly influenced by global events such as changes in oil production, geopolitical tensions, and weather-related disruptions. To ensure a stable fuel supply, the Australian government is moving to build a strategic reserve of petroleum products under the Fuel Security Act 2021, and is pushing ahead with the Boosting Australia’s Diesel Storage Program to stockpile more diesel. Additionally, Australia is improving its already stringent fuel quality standards to reduce environmental impact and maintain engine performance. The Refinery Upgrades Program aims to increase refinery efficiency for limiting sulphur content to ten parts per million (PPM) of sulphur across all fuel classes – current standards have it at 150 PPM in regular unleaded petrol, and 50 PPM in premium unleaded petrol. These standards help ensure that the fuel you purchase

Elopement, once associated with spontaneous and secretive ceremonies, has evolved into a popular choice for couples seeking an intimate and cost-effective way to tie the knot. It is even more prominent in the post-pandemic climate when the danger of infection underlines the need for more private rites. In this article, we’ll explore the financial benefits of eloping, the rationale for proper budgeting when preparing to settle down, and provide insights into planning a memorable elopement ceremony. Financial Planning for a Debt-Free Wedding As you embark on the journey to settle down with your partner, financial planning becomes a critical aspect of the process. Weddings, while joyous occasions, can be expensive endeavours that impact your financial stability. Proper budgeting for your wedding is an essential step in ensuring that your transition to married life is smooth and debt-free. Starting Your Marriage on Solid Ground By budgeting wisely, you’re setting the foundation for a strong financial partnership. Open communication about money matters and aligning your financial goals can reduce stress and contribute to a harmonious marriage. Avoiding Debt Overspending on a wedding can lead to unnecessary debt, which can strain your finances and hinder your ability to achieve other goals, such as buying a home or starting a family. Data from federal finance portal MoneySmart notes that weddings in Australia can cost at least $36,000 on average, wildly varying by state/territory (according to ABIA data), and 82 per cent of couples even spent part of their savings for the entire undertaking. The 2024 Australian Wedding Industry Report by Easy Weddings also noted that 79 per cent of respondent couples had to fix their wedding budgets due to cost of living issues.  Investing in Your Future Money saved on wedding expenses can be redirected towards important life milestones, such as purchasing a home, building an emergency fund, or investing in retirement accounts. Focusing on What Truly Matters An elopement allows you to focus on the essence of your commitment rather than getting lost in the complexities of a large-scale wedding. Financial Benefits of Elopement Eloping, once thought of as an unconventional choice, offers a range of financial benefits that can resonate with couples looking to prioritise their long-term financial well-being. Savings The most evident benefit of eloping is the significant cost savings. Traditional weddings often come with hefty expenses related to venues, catering, decor, and entertainment. Eloping slashes these costs dramatically, allowing you to reallocate funds to other financial goals. A sample expense list drawn up by Wedlockers detailed that among others, the venue and accommodation might cost $1,500, $450 for a celebrant, $400 for the rings, and even $500 for the attire, plus transportation expenses especially for exotic locales.      Intimate Setting Elopements offer an intimate and personal setting, allowing you to focus on your partner and the commitment you’re making, rather than managing a large guest list. Reduced Stress Planning a big wedding can be stressful and time-consuming. Eloping simplifies the process, minimising the need for intricate planning, vendor coordination, and potential family tensions.  Flexibility in Location Elopements provide the freedom to choose any location that holds meaning for you as a couple, whether it’s a beach, a mountaintop, a city rooftop, or a quiet forest. Minimalism and Authenticity With fewer details to manage, elopements encourage a focus on authenticity. You can prioritise the exchange of vows and meaningful moments without the distractions of a grand event.  Planning Your Memorable Elopement Ceremony While elopements offer financial benefits, they are by no means a compromise on romance or significance. Here are some cardinal elements to help you plan a memorable elopement ceremony: Location Select a location that holds personal significance for both of you. Whether it’s where you first met, a place you love to visit, or a destination you’ve always dreamed of, your choice will add sentiment to your ceremony. Papers Under Australian law, eloping couples must present signed documents to an authorised civil celebrant, such as Notice of Intended Marriage (NOIM) and statutory declaration, and formal papers attesting the couple are single, over-18 people not biologically related who have consented to get married. NOIMs can only be issued at least one month away from the elopement date.  Witnesses In Australia, you need two witnesses to make your marriage legal. Choose close friends or family members who can share in your special moment. Their presence can make the occasion even more meaningful. One case of how an elopement ceremony can be a powerful sign for your new relationship is the elopement of Townsville couple Molly Jackson and William Hampton, as noted by ABC North Queensland in February 2023. With licensed celebrant Abbey Chivers as officiant, the couple made their vows with Jackson’s two daughters as the only witnesses.  Capture the Moment Just because your elopement is intimate does not mean you cannot capture beautiful memories. Hire a photographer or videographer with experience in elopement coverage to document your ceremony and create lasting keepsakes. Personalised Vows Write personal vows that reflect your journey and commitment. Sharing your promises with each other adds a heartfelt touch to the ceremony. Celebrate Later If you want to involve your loved ones in your celebration, consider hosting a casual gathering or dinner after your elopement. This way, you can share your joy with family and friends without the pressure of a large-scale event. Embrace Minimalist Decor Since elopements are often characterised by their simplicity, embrace minimalist decor that complements the natural beauty of your chosen location. Stay True to Yourselves The beauty of elopements lies in their authenticity. Create a ceremony that resonates with your personality and the love you share. Conclusion Eloping offers a refreshing alternative to traditional weddings, with financial benefits that align with prudent financial planning for your future. By embracing the simplicity and intimacy of an elopement, you can prioritise your commitment, create lasting memories, and make a leap towards a financially secure life together. As you embark on this journey, remember that love and connection are at the heart of any meaningful

Navigating finances during maternity leave is crucial for Australian moms. Discover tips to manage this transformative time effectively. Welcoming a new addition to the family is an exhilarating journey, but it comes with its own set of challenges, particularly in terms of finances. For new mothers in Australia, managing finances during maternity leave is a critical aspect of preparing for parenthood. In this article, we will delve into the financial realities that arise during maternity leave and provide practical tips on how to effectively manage your finances during this transformative period. Maternity Leave in Australia: Financial Realities Maternity leave in Australia typically extends for up to 12 months, during which new mothers are eligible for various government benefits and employer-provided leave. Services Australia, in particular, mandates that starting for births or adoptions after 1 July 2023, the Parental Leave Pay (PLP) gross payout stands at $176.55 a day, or $882.75 a work week. A parent in a couple can receive it for up to 90 days. However, benefits like PLP might not fully replace your regular income, leading to a potential financial strain. This abrupt reduction in earnings can create a challenge, especially when coupled with the additional costs associated with caring for a newborn. Managing the Costs of Parenthood The journey into parenthood introduces an array of new expenses that need to be incorporated into your budget. Medical Expenses From prenatal checkups to postnatal care, medical costs can accumulate rapidly. Make sure you are aware of any out-of-pocket expenses and factor them into your budget. Baby Essentials Diapers, clothing, baby gear, and nursery items are essential expenditures. Consider budget-friendly alternatives, such as buying second-hand items, to alleviate costs. When it comes to nappies, Raising Children AU recommends using cloth nappies over disposables to prevent rubbish buildup and make cleaning easier.  Childcare If your plan involves returning to work after maternity leave, childcare costs will become a significant factor. Research and budget for various childcare options to determine the most feasible solution for your family. Income Reduction The decrease in income during maternity leave can be daunting, especially if the mother has a partner who might be the sole income-earner for their household. Preparing for this drop in earnings is crucial for maintaining financial stability. Strategies for Effective Budgeting During Maternity Leave Maternity leave can be a tedious time for a new mum, in many aspects, but they can be managed to alleviate stress and the purse. Anticipate and Prepare Ideally, initiate financial planning for maternity leave well in advance of your due date. Evaluate your current financial situation, calculate your expected maternity leave benefits, and ascertain the extent of the potential financial gap. Develop a Comprehensive Budget Establish a thorough budget that encompasses all your expenditures, including essential bills, groceries, transportation, and existing debts. This will provide you with a clear overview of your financial commitments. Emergency Fund Maintaining an emergency fund is imperative, particularly during maternity leave. This fund acts as a safety net for unexpected expenses or emergencies that might arise. Review Your Insurance Confirm that you have adequate health and life insurance coverage to safeguard both you and your growing family against unforeseen medical costs or circumstances. The federal government’s MoneySmart portal states that if you decide to have all pregnancy and natal costs covered under private insurance, be aware that the waiting list might go as long as 12 months.    Prioritise Spending Distinguish between needs and wants. Focus on covering essential expenses and consider reducing discretionary spending to manage your finances more effectively. Leverage Government Benefits Review all of the government-mandated benefits available to Australian mothers, such as Parental Leave Pay, the Pharmaceutical Benefits Scheme, and the Family Tax Benefit. These benefits can offer supplementary financial support during this period. You must consult Services Australia and the Department of Health and Aged Care to determine which assistance benefits apply to you. Open Dialogue with Creditors If you have existing debts, like credit card balances or loans, consider engaging in discussions with creditors to establish more manageable repayment terms during your maternity leave. Save During Pregnancy If possible, allocate a portion of your income during your pregnancy to create a financial cushion for the months of reduced income. In that aspect, that saving can be angled into some investment for the child: writing for Money Magazine, Michelle Ives said if there’s some disposable cash, you can build an investment portfolio with your child as the trustee, then turn it over to them when they turn 18.  Stay Informed Keep yourself informed about your workplace rights, including entitlements to maternity leave, flexible work arrangements, and options for gradually resuming work. Explore Flexible Work Options If your skillset permits, explore opportunities for freelance work or remote employment during your maternity leave. This could supplement your income while allowing you to spend quality time with your baby. According to current rules in Australia, employed mothers can even arrange work-from-home for up to 52 weeks’ unpaid leave or 20 weeks’ PLP. Conclusion Maternity leave is a precious time to bond with your newborn, but it also presents financial challenges. By understanding your benefits, devising a budget, and planning for the financial adjustments that parenthood brings, you can ensure a smoother transition into this new phase of life. Remember, maintaining open communication with your partner and seeking financial advice if necessary can provide additional support and guidance throughout this journey. With thoughtful planning and adept financial management, you can navigate maternity leave while providing the best for your growing family. DISCLAIMER:  This article is for informational purposes only. 2 Ezi has no relationships with any government agency or individual mentioned.

In today’s competitive academic scene, parents opt for private tutoring for kids to secure their academic success. Discover why it’s gaining popularity. When it comes to today’s competitive academic landscape, parents constantly seek ways to provide the best possible opportunities for their children’s classroom success. As a result, the private tutoring industry in Australia has witnessed remarkable growth over the years. Many parents are choosing to invest in private tutoring to ensure their children’s academic advancement and overall learning experience. In this article, we will explore the reasons why parents are turning to private tutors, the benefits they offer, as well as the potential drawbacks of hiring a private tutor for your child. Private Tutoring Private tutoring is a booming industry in Australia, driven by the desire to excel academically and secure a brighter future for children. The modern education system often comes with its challenges – from larger class sizes to a diverse range of learning abilities within a single classroom. These challenges can hinder a student’s progress, making it difficult for teachers to provide personalised attention to each student. As a hint of the size of the Aussie tutoring industry, figures compiled by GitNux noted that as of 2020, the industry was worth $1.2 billion a year – some observers peg that size at $1.3 billion. Australian Tutoring Association CEO Mohan Dhall said to the Australian Financial Review’s Theo Friedman that there’s an estimated 4,000 tutoring companies in the country, with over 70,000 full-time and part-time tutors on the rolls.  However, some of that market might be utilised abroad in some form or fashion. British-Aussie Jerome Barty-Taylor, for example, has used his ANU and Oxford education to run a tutoring business in Hong Kong, catering to upper-class families whose children are aiming to study at top universities in America. A May 2023 story on SBS Online covered how China’s crackdown on after-school tutoring providers forced them to pivot to mentoring students abroad to remain in business, with one company offering online mathematics classes to Aussie Year 1-8 students. Hiring a Private Tutor Below are several reasons why parents opt for private tutors in Australia. Personalised Learning Private tutors offer individualised attention to students, tailoring their teaching methods to match the student’s learning style, strengths, and weaknesses. This personalised approach can lead to more effective learning and faster progress. Addressing Knowledge Gaps Private tutors can identify and address specific knowledge gaps that students may have missed in their regular classroom setting. This targeted approach can help students build a solid foundation in their subjects. Exam Preparation Private tutors offer tailored instruction and preparation specifically designed to support students aiming for crucial exams, such as the Higher School Certificate (HSC) and the Australian Tertiary Admission Rank (ATAR). This can significantly enhance a student’s chances of performing well in these critical assessments. Some tutor firms in Australia are even geared towards offering HSC and ATAR sessions. Boosting Confidence Individualised attention and focused support from a private tutor can boost a student’s confidence and self-esteem. As they see improvement in their academic performance, they become more motivated to learn and excel. Some tutors may even go as far as impart valuable study skills and strategies that can benefit them throughout their academic journey. Flexible Learning Private tutoring offers flexibility in terms of scheduling. Tutors can adapt to a student’s timetable, making it easier to balance academics with extracurricular activities. Targeted Learning Goals Private tutors can work with students to set specific learning goals and track their progress over time. This goal-oriented approach ensures that students stay on track and experience a sense of achievement. Drawbacks? Enlisting a private tutor for your child may offer a panoply of advantages in preparing them for higher schooling, but you might ask, are there factors against hiring one? Cost Private tutoring can be expensive, adding to the already significant expenses associated with education in Australia. Dhall notes that on average, part-time tutors can earn up to $30 an hour and certain tutors catering to wealthy families might even command $200 an hour. Demographics can even apply to the cost: the team at TutorNova estimated that the rates of medium-level tutors with modest qualifications working in urban centres may be premium rates in regional Australia. For example, a tutor of that calibre working in Kalgoorlie, WA may charge $65 an hour when at best, they could only fetch $50 for clients in the Sydney CBD. Dependency Students might become overly reliant on their tutors, hindering their ability to develop independent study skills. Pressure Intense focus on academic improvement can sometimes lead to excessive stress and pressure on students to perform exceptionally well. Lack of Compatibility Not all tutors may be a good match for a student’s learning style or personality, leading to potential conflicts and ineffective lessons. At the same time, if a parent in Australia opts to enlist a tutoring service abroad, questions about the quality of the lessons may arise; commenting on the above SBS story, UTS Assoc Prof Christina Ho said international tutors might have lesson plans that are all but incompatible with the Australian Curriculum. Time Management Balancing school, extracurricular activities, and tutoring sessions can lead to a packed schedule, potentially affecting the student’s overall well-being. Conclusion Investing in private tutoring is a significant decision that requires careful consideration. Parents should assess their child’s specific needs, learning style, and goals before opting for private tutelage. It’s essential to research potential tutors thoroughly, considering their qualifications, teaching approach, and compatibility with the student. While private tutoring can provide numerous benefits, it’s equally important to strike a balance and avoid overwhelming the student. Encouraging them to take ownership of their learning journey while leveraging the support of a tutor can lead to a more well-rounded educational experience. In conclusion, the private tutoring industry in Australia offers a valuable solution for parents seeking to provide their children with personalised support and academic advancement. While there are both advantages and disadvantages to hiring a private tutor, a

Property ownership is a significant investment; what if it becomes necessary to renovate or rebuild? Some property experts say that to consider a knockdown and rebuild (KDR) requires a bit of due diligence. For starters, you must consult your local council’s construction planning laws to verify the status of your property. If the place has any historic significance and is properly listed on a register, it cannot be torn down and only a renovation may be carried out. A sewer/drainage plan listed in the original purchase contract for the property, plus council records, may also determine its age.  A council evaluation of your property’s block will also add more information. For instance, knockdowns and rebuilds of houses on flat blocks are easier to accomplish than those on sloped blocks. If there’s vegetation or trees that must be displaced for the project, that will require a separate permit, in addition to contractor fees for tree removal. Account for the property’s boundaries and other factors such as orientation when planning your chosen project with a contractor.    Your due diligence for either a renovation or rebuilding must account for the market conditions in your area to determine the average property value; associated information for this can be gleaned through a property agent who is licensed to operate in the area. If for example, your existing suburb has lower property values, a renovation of modest value may be an attractive option. If you are planning to renovate or rebuild, the following are some points to consider. Renovation Pros A home renovation can increase the property value, especially in the case of the kitchen and bathroom, which several property appraisers attest as reaping the most value for the place. Renovating the property gives you a chance to style it according to your preferences, given much thought in the interior design. The property can also deserve an upgrade in aesthetics. A renovation may work when you’re looking for lifestyle changes, such as downsizing or your family is growing in size. If the budget is properly managed and the project is completed on schedule, the final cost may be cheaper than buying a new property. Some studies estimate the average cost of a property renovation in Australia to range between $2,500 per square metre to as high as $4,000.  Cons The biggest setback to a renovation is the danger of overcapitalising. In this sense, you may spend a lot more money on the project, but a subsequent assessment reveals that the property value may not change – at worst, it may even go down. If you spent too much money on a renovation, some experts contend that it may help render the property unattractive to buyers. For example, a house with a one-of-a-kind renovated bathroom or kitchen made for a high cost might clash with the other areas of the property, let alone other houses in your neighbourhood.  For health and safety purposes, you may be forced to live elsewhere for the duration of the project, whether to move in with relatives or settle in a rental property. If you know some friends who also had their entire properties renovated, they may suggest the same thing, as sawdust or paint fumes are health hazards. Depending on the project timetable, you need to properly manage the assignment of tradespeople. Rebuild Pros A knockdown and rebuild project is often seen as a chance to start over on the property, especially if the existing house has been evaluated and determined that it is structurally unsound, due to factors such as age and condition. Given the possibly decrepit shape of the property, a full rebuild may save you time and money that would have been otherwise spent on a potentially unsuccessful renovation. It may also give you the opportunity to have the resultant house designed according to your specifications, even more if you closely consult with a noted architect and contractor on the project. In an age of environmental sustainability, a KDR property built with modern, “green” materials may be attractive to property investors looking for more comfortable living.  Building a new house on the lot can help bring up the property resale value. It may also ease up your maintenance expenses; some homeowners who now live in rebuilt properties claim they had a smoother time with maintenance as opposed to tedious work in their original properties.  For certain people, knocking down a property can be seen as a way to remove unpleasant memories, with the demolition of Jenny Curran’s old house depicted in the classic movie Forrest Gump as a sad example. On a bright side, some families consider KDRs as a way to reaffirm their ties to the local community, even more if they have lived in the area for years and have no plans to resettle elsewhere.  Cons A knockdown and rebuild can only be successful if the architect and homebuilder overseeing the project is of impeccable reputation and strong workmanship. A verified Master Builders licence in your state or territory is also critical; the absence of which may reflect in the final output of the project.  Any knockdown/build-up project should have the final approval of your local council. However, building up the documentation and submitting it to the council for clearance may take some time. A reputable homebuilder may help you navigate the process.  If you have committed to a knockdown and rebuild, one consequence of it is you have to resettle elsewhere, such as renting another property or to ask friends or family to take you in for the meantime. You must also plan to keep revisiting the property to check on the progress. Knockdown and rebuilds are usually known to be carried out between eight months to a year, so map out your timetable accordingly. Conclusion Whether you want to pursue a renovation or to start something new, the end result will be worth it. All you need is thorough funding and preparation.