Should you improve your existing home or purchase a new one?
Deciding between improving your existing home or purchasing a new one can take considerable time and effort. If your family is expanding, your workspace is spilling onto the kitchen table, or your bathroom feels more like a closet, it might be time to upgrade your living arrangements.
But should you renovate your existing home or pack up and move to a new one? This is a significant decision that requires careful thought.
Here are some factors to help you navigate this important life choice.
Financial considerations
It’s essential to consider the two main factors: the financial impact and the potential inconvenience. Ask yourself these questions: Will the value of my home increase at least as much as the cost of improvements? Will buying another property cost more or less than any renovations?
Consider the disruption that renovations can cause. Can you live in the property while work is being done? Would it be easier to relocate to a home that meets your needs?
Evaluating property worth
To make an informed decision, estimate your home’s worth after the planned renovations. Be aware of your area’s property ‘ceiling’, i.e., the highest price properties like yours can reach. For example, if adding bedrooms and living spaces could align your home with larger, more expensive properties in your neighbourhood, it might be a sound investment.
Detailed planning for renovations
Renovations involve detailed planning, including cost estimates, obtaining planning permission, meeting building regulations, and hiring reliable contractors. This process can be time-consuming and may entail unexpected expenses.
Even with high-quality renovations, there may be a limit to how much someone will pay for your property based on its location and comparison to neighbouring homes. Adding more rooms might translate into a lower value if the local market has many larger properties but fewer three-bedroom houses.
Experienced expert insights
An experienced local estate agent can provide insights into your residential area’s average values and price ceilings. They can also help you understand whether selling your current home would be more cost-effective and finding a new one that suits your future needs.
If you choose to move and buy an improved home, you can avoid the stress of renovation work. You can enjoy your new space, especially if it’s a newly built property.
Comparing costs and needs
Identify all the changes your home needs. Do they require planning permission, or are they minor changes? Compare the costs of making these changes to the costs of moving. Look at the cost of properties that meet your needs in your preferred area. Consider whether any available new builds offer energy efficiency and lower running costs.
Final decision making
The decision to renovate or relocate largely depends on your circumstances, budget, and tolerance for disruption. Whatever path you choose, plan thoroughly and seek professional advice to make the process as smooth as possible.
Need expert advice to make your mortgage journey smoother?
Whether you’re on the cusp of making a home purchase, considering a move, or looking to enhance your living space, it can be a daunting experience. Don’t worry. We’ll provide expert advice to make your mortgage journey smoother. Speak to our team today!
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
