Location is one of the oldest clichés in the industry, but it is also one of the most important considerations when buying property.

Many people face the choice of either buying a new home or renovating an older property in an ideal location.

When making this choice, there are three things to consider:

How much will it cost to renovate?

If you added the purchase cost of the property with the expected costs for the renovation, what would the property owe you? Would the value fall above the costs – ie would it be profitable for you?

This can be one of the biggest mistakes made by renovators, where they undertake a capital improvement like building a pool for $50,000, yet the pool may only add only $20 to $30,000 to the value of the property.

Do the surrounds of the property have considerable character that can't be replicated?

With any improvements you make, it is imperative to keep them in line with the character of the area. Many extensions and upgrades are undertaken on older properties with a modern feel.

If you fail to update other areas of the home to the same standard, it can be unappealing in the market.

What would the new house look like and what would it achieve?

A new property offers the benefits of having all the modern conveniences, without the hassle of having to replace any items which may be coming to the end of their life in an older property.

Often the lustre of a new property can heighten the emotional experience, but this can be short-lived if the location is inconvenient for the lifestyle of the purchasers.

New properties may have larger open-plan living spaces which are uncommon in older style properties.

No matter which decision you make, be sure to think of the lifestyle benefits the property will provide to you. Should you need to sell, will the property be attractive to buyers in the market place?

At the end of the day, it is your property, and the lifestyle benefits that it offers can far out way the costs of an incorrect decision.