Outgrowing your space?

Deciding between improving your existing home or purchasing a new one can take 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. It’s essential to consider the two main factors: the financial impact and the potential inconvenience.

FINANCIAL CONSIDERATIONS

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?

CONVENIENCE FACTORS

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?

KNOWING YOUR PROPERTY’S 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.

PLANNING AND EXECUTION

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.

PROPERTY VALUE CAP

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 not translate into a higher value if the local market has many larger properties but fewer three-bedroom houses.

“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.”

LOCAL MARKET KNOWLEDGE

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.

ENJOYMENT FACTOR

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.

STEPS TO DECIDE

• 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.

PLAN THOROUGHLY AND SEEK PROFESSIONAL ADVICE

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.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.