A new home is the beginning of an exciting adventure—but what about renovating vs moving out and selling your current home? We’re weighing up the pros and cons of what might be your best option.
Outgrowing your home is common. Your family may have grown, or your requirements and tastes may have changed. So, should you start the process of finding a new home, or should you turn your current home into a dream house?
In this blog, we’re looking at the ins and outs of both options. Let’s get straight into it!
What are the benefits of renovating?
Every property gets old. No matter how much you love your home, it ages and can become outdated or rundown.
Most properties go through changes and renovations over the years to keep them in great condition and to ensure they remain modern.
Your house may have suited your needs when you were starting out, but it won’t stay that way forever. Maybe you’ve gotten married, had children, or your house is simply outdated. That one-bedroom apartment might feel a little too crowded with little ones on the way!
Rather than selling, many homeowners decide to renovate instead. This can be super fun—you handle all decisions and can craft your dream home right down to the tiles!
Many believe that renovations are far too expensive, but a well-planned and well-budgeted renovation can help you add that extra bedroom or bathroom without costing a fortune and keep you in your neighbourhood.
One thing to keep in mind, though, is to avoid overcapitalising. You don’t want to end up with the most expensive house in your area because you’ve overspent. This could mean making a loss when it’s time to sell.
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Key benefits of renovating vs moving
- Improve the comfort of your home
- Improve the functionality of your home
- Lower energy costs by upgrading to more efficient appliances
- Increase the value of your home
What are the risks of renovating?
Overcapitalisation
As mentioned above, one of the biggest risks when renovating vs moving and selling your home is overcapitalisation. A beautiful and fancy house is the dream, but if you can’t sell it for what it’s worth one day, it could turn into a financial nightmare.
Overcapitalisation happens when you spend more on renovations than the value they add to your property. If your house’s value increases too much compared to others in the area, you risk not getting a return on that investment.
Time
Another major risk is time. Renovations often take longer than expected. This could be due to busy tradesmen or delayed appliance deliveries.
If you need to move out during a structural renovation, time delays can increase your costs significantly—you may need to pay rent elsewhere on top of your bond repayments.
The most successful renovators plan carefully. They create detailed budgets (with contingencies), stick to them, and hire professionals to ensure work is done efficiently and to a high standard.
Tips for renovating to add value and avoid overcapitalisation:
- Set a budget—and try your best not to go over it.
- Focus on low-cost improvements, like light fittings, paint, tap fittings, or changing kitchen cupboard colours.
- Connect with agents to find out what home buyers are looking for in your area.
- Prioritise space and functionality—changes should make sense. For example, opening up your kitchen and lounge or adding more storage.
- Understand what adds value and what doesn’t.
One of the most cost-effective renovation tricks? Painting! A simple coat of paint can completely transform a home—and the best part? You can do it yourself.
What are the benefits of moving house?
Now that we’ve looked at renovating, let’s explore the adventure of finding a new home.
For many people, renovating just isn’t an option—either the property isn’t suitable, or they just don’t want to live in a construction zone.
One major benefit of selling is capitalising on your property’s increased value. If your home is worth more than when you bought it, you can sell and upgrade to something better suited to your needs.
You can also find a new home that meets your current and future needs. A 5-10 year plan is helpful when house-hunting.
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What are the cons of selling and moving house?
Moving to a new house, though exciting, is often considered one of the most stressful life experiences. It’s also when you discover just how much stuff you really own!
You may also feel emotional about leaving the home you’ve loved and raised a family in. Even if the new home suits your functional needs better, you may love your current neighbourhood or live near your children’s school.
So, what should you do?
The question of whether to renovate or sell is a personal one. You need to weigh all the pros and cons outlined above—and your own list too.
Renovating vs moving can both be exciting, and renovating can increase your home’s value, but it takes time, effort, and discipline to stay within budget.
Selling and moving can be the right choice if it helps you upgrade and move to a better neighbourhood, but it’s a stressful and costly process and may disrupt your family.
Before deciding, ask yourself:
- How much work does your current house need to suit your needs?
- Can you afford to move or renovate? How will you budget for it?
- How much have you already invested in your current home?
- How will your decision affect your family (schools, friends, routine)?
- What’s the current state of the property market? Is it a buyer’s or seller’s market? Will selling and buying benefit you financially?
There’s a lot to consider, but no matter what you choose when looking at renovating vs moving, Oneplan is here for you, your belongings, and your property every step of the way.
Yours in comprehensive home insurance,
Oneplan
