renovate or relocate

Renovate or Relocate? 3 Key Factors That Determine What Adds the Most Value to Your Property

When it comes to upgrading your home, homeowners often face the ongoing dilemma of, should you renovate your existing property or relocate to a new one, or as Phil and Kirsty would say ‘Love it, or List it?’ (Great program for anyone who hasn’t watched it) But back to the blog now, both options have their advantages and disadvantages, with the right choice depending on your personal circumstances, finances, and what adds the most value to your property in the long run.

The Renovation Advantage

Renovating your home can be a strategic way of increasing its value while also making it suit your current needs. Here's how renovations add value:

  1. Boosting Market Value

Targeted renovations, such as upgrading the kitchen, adding an extra bathroom, or improving curb appeal, can hugely increase your home's resale value. According to estate agent experts, new kitchen and bathrooms typically hold the highest return on investment, often recouping a massive 70-80% of their costs.

  1. Customisation to Fit Your Lifestyle

Renovating allows you to stay in the neighbourhood you love while changing your home to fit your lifestyle. For instance:

  • Growing families might want to add extra bedrooms by converting loft areas or why not convert an unused garage space into an all-important play area.
  • Remote workers may want to create dedicated home offices.
  • Energy-conscious homeowners could invest in eco-friendly upgrades like solar panels or improved insulation.
  1. Cost Efficiency

In a lot of cases, renovating is less expensive than buying a new home, especially when you factor in moving costs, estate agent fees, and stamp duty.

Blog Images 2024 12 10T113441.329

The Case for Relocating

Relocation is often the better choice if your current property has space limitations that mean you can’t convert, or if you don’t have the upfront capital to do renovations. Here's why:

  1. Finding the Perfect Fit

Sometimes, a home’s footprint or location may not accommodate your needs. For example:

  • A small urban lot might lack the space for desired expansions.
  • Proximity to work, schools, or amenities might make relocating a better option.
  1. Better Financial Prospects
  • If your home's market value has peaked, selling and moving to a more promising area could be a smarter investment option. Relocation can also open doors to neighbourhoods with higher long-term appreciation potential.
  • Sometimes renovations are just not an option due to having no upfront capital to renovate.
  1. Avoiding Over-Capitalisation
  • Remember renovations don't always mean an increased property value. Over-capitalising is real, and can often happen if upgrades have cost more than your home is worth. This could end up making you financially worse off. If similar homes in your area aren’t selling at a higher price, moving might be the better option.

Rightmove sold house prices is a great way to check what houses in your local area are selling for.

Blog Images 2024 12 10T114804.898

What Adds the Most Value?

Whether you choose to renovate or relocate, your decision should always focus on maximising the property’s value. Here's how to evaluate it:

For Renovations:

  1. Take the time to understand your local market: Research what buyers in your area are looking for. Upgrades like open-plan layouts or modern appliances are often in demand.
  2. Prioritise high ROI projects: Focus on renovations with a universal appeal -
  • New kitchen
  • New bathroom
  • Landscape garden
  • Energy-efficient upgrades

3. Keep it budget friendly: Stick to renovations that align with your neighbourhood’s average resale value.

For Relocations:

  1. Research new markets: Look for desired areas that have rising property value and strong demand for housing.
  2. Buy smart: Choose properties with the potential for appreciation and features that align with current market trends.
  3. Factor in all costs: Consider all moving expenses including stamp duty costs and possible renovations that you may need to do to your new home.
Blog Images 2024 12 10T114146.665

Key Questions That You Must Ask Yourself

  1. What’s My Budget? Renovations can range from minor updates to huge overhauls. Compare these costs to the expenses involved in selling and buying a new property.
  2. Am I Attached to My Current Location? If you love your neighbourhood and your home has the potential for upgrades, renovating could be the answer. Moving can be a big deal for some, so factor in your mental health too. You wouldn’t want to be left missing your old home.
  3. Will Renovations Yield a Return? Consult with an estate agent to help decide whether renovations will increase your home's value or not.

Final Thoughts

Deciding between renovating or relocating is a deeply personal choice that depends on your goals, financial situation, and long-term plans. Renovations can be a brilliant way to boost your property’s value while improving your quality of life too. However, relocation may be a better option if your current home no longer meets your desires or if the local market shows it isn’t profitable to do the upgrades.

Ultimately, understanding the market properly, planning strategically, and consulting professionals will help to ensure that your decision, whether to renovate or relocate, adds the most value to your property and your life.

image of ocean for blog post about ocean conservation

Ocean Conservation: 3 Urgent Reasons We Need to Protect Our Oceans

Ocean Conservation: 3 Urgent Reasons we Need to Protect Our Oceans Our oceans, covering over 70% of the Earth’s surface, are the lifeblood of our planet. However, their serene beauty hides a crisis. This blog post delves into the urgent need for ocean conservation, exploring the threats our oceans face and the crucial role they…
Read More
healthy eating

Healthy Eating on a Tight Schedule: 10 Tips for Busy Professionals

Healthy Eating on a Tight Schedule: 10 Tips for Busy Professionals When you’re completely bogged down with work, balancing meetings, deadlines, and an annoying constant flow of emails, prioritising healthy eating often feels impossible. Grabbing fast food or skipping meals altogether can seem like the quickest and easiest route, but even during a busy day,…
Read More
curtain walling vs wall cladding

Curtain Walling vs. Wall Cladding: The 5 Important Key Differences

Curtain Walling vs. Wall Cladding: The 5 Important Key Differences When it comes to modern building design, the exterior look of a building plays a huge role in its aesthetics, functionality, and durability. Two common methods for not only a beautiful finish but also to protect the exterior are curtain walling and wall cladding. While…
Read More
hygge

Creating a Cosy and Welcoming Home: 5 Great Tips for Hygge-Inspired Interior Design

Creating a Cosy and Welcoming Home: 5 Great Tips for Hygge-Inspired Interior Design The Danish concept of hygge (pronounced “hoo-gah”) has recently become a beloved design philosophy for creating a cozy, warm, and welcoming home. With comfort and contentment in mind, hygge-inspired design emphasizes spaces that feel safe, serene, and inviting. You could be looking…
Read More

...perfect to modernise windows and fit blinds or fly screens.