Spring: typically the time of the year everyone is thinking and talking property. You really need another bedroom, and ideally an extra bathroom as well. Shall we move or shall we renovate? Is a dilemma facing many?

If you sell and upgrade to a bigger house you will typically have to pay agents costs, moving costs, and two lots of legal costs and stamp duty, and often end up with a bigger mortgage. But moving brings with it new challenges, new schools, substantial change and upheaval. Some thrive on this and view it as a chance to clean up, throw out, and renew. Others crumple under the pressure and live with unpacked boxes for 2 years. Logistically it can be stressful. Your bank/mortgage broker will want you to sell first and then buy; this makes the loans very easy and avoids you owning 2 properties at once. Every pore in your body will want to buy first then sell your old place, to avoid being homeless for even a day. But beware if you have bought and then can't sell your old place, you will need to arrange for bridging finance, and not all banks will do this and the ones that do have restrictions on how long you can own both properties for - normally 6 months - before they force you to sell. Get some good legal and loan advice before you jump: you don't want any nasty surprises. www.smartline.com.au

If you stay and renovate, you should be able to add those extra rooms for a similar cost to the sell and buy exercise, only you won't have to move. So you keep the same neighbourhood and schools. You will however, have to live through a renovation for a while and the money for the reno needs to come from somewhere and often you end up with a bigger mortgage. You need to deal effectively with councils, builders, trades people, architects. Plus any structural change to your property must be advised to your bank (they will want to see the council approval, the plans, quotes, insurance and other items) and they must approve before you start. Even if you have the money to pay for the renovation in cash and not borrow, you still must advise your bank that you intend to structurally change the property in anyway. Only the lucky few who have no mortgage at all and own their own property outright do not have to tell the bank what they are doing. One other thing to bear in mind, when planning a renovation, very often you decide to add in more things, a study would be nice, what about a family room, and suddenly the estimate jumps up. Keep your head and keep a tight rein on the chequebook. Seeking some loan advice before you start should help and there is a lot of great info on www.archicentre.com.au for more info.

Think carefully about either option. And with all things property, try to balance out the practical and financial realities with the emotional ones.

Catherine Lezer is a small business owner, property investor and inspirational speaker on the topic of women and money through her Rich Chicks seminars. For more information visit www.richchicks.com.au