There comes a point in many families lives where they’re left with a difficult property decision – should they buy a new home, or renovate? Although buying a new home is often easier, renovating a current property to meet future living requirements can also be more cost-effective.
Sadly, it’s a difficult decision to make. In this article, we’re going to take you through both sides of the question, so you can make the choice that’s right for you.
Renovation boosts your property’s value
One of the key points you need to consider is that, through the renovation process, your property can significantly increase in value. This means that, by the time you come to sell it, you’ll be able to fetch a higher asking price and move significantly further up the property ladder.
Before starting a renovation, be sure to get an independent valuation of your home. You should also set out a budget and plan to give you a clear understanding of how much the renovation work will cost you.
Be aware of changing market value
Many people enter the renovations process assuming they’ll make back their money and cut a nice profit on top. It’s important to remember that this isn’t always the case. Although you should aim to increase your property’s value, you shouldn’t rely on it financially, as you could end up in debt.
Look to the future
If you’ve got a young family, you need to look forward and consider whether a move is really right for you. If you’ve got a job in an area and kids at the local school, you need to consider that uprooting them and moving to a new neighbourhood could do more harm than good. For the meantime at least, a renovation might suit your needs better and save causing unnecessary stress.
Buying at the right time is key
Although it can require uprooting your family and investing a substantial sum, buying a new property can also really pay off. If you do your research and nail the timing, you’ll have the opportunity to buy a brand new home at the optimal price, right before those prices significantly rise.
Make sure not to overbuild
If you choose to buy land and build a property on it, pay close attention to the surrounding area. Research the average prices of the neighbouring houses and plan around that to avoid losing money. If you build a house that’s far more expensive than the rest of the neighbourhood, you could stand to make a heavy loss on the sale price.
Moving can be beneficial
Although you have to think about the negative impact a move could have on your family, it’s also worth considering the benefits. The chance to explore a new area and have a fresh start could actually play out better in the long run. The area you’ve chosen might be closer to local amenities and schools, making your lives far easier.
Regardless of the final decision you make, be sure that it’s the right one for your family and your finances. Some compromises might be required, but if you do your research, you’ll make the right decision.