Should I stay or should I go? It’s a common dilemma for homeowners looking to upgrade their living space. On one hand, you could sell up and move to somewhere better, or alternatively spend the money improving your existing house. Should I sell my home and move into the one that best suits my needs, or shall I just improve the home I am in and turn it into my dream home? It really is a tricky one and not least because there are pros and cons on both sides. You need to consider a huge range of questions before making this choice and the answer may still not be clear.
The question has been even further complicated by the recent vote in the UK to leave the EU and its somewhat unknown effect on house prices. The Nationwide reported recently that house prices saw a slight rise of 0.5% in July 2016, but that they felt that the EU decision could reduce demand overall. This rise compares to more than 5% in the previous year. If house prices were to fall this could seriously affect your choice about whether to sell or improve.
The pros and cons of selling
- If house prices are falling, you may be able to get the house you want at a cheaper price. If you are downsizing this might work in your favour. But of course you will receive less for your home
- You will be able to choose the exact home that suits your needs, but there may be a lower supply as house prices will be depressed
- The costs of selling (fees, solicitors etc) may be less than the costs of extending
- Banks have become very averse to offering mortgages – so getting an increased one may be tricky
- The work is already done and you won’t need to live with the mess and disruption of home improvement work
- You may find it hard to sell your home in an uncertain market
The pros and cons of improving
- You already know your home, the area and your neighbours – those things won’t change if you stay put
- The costs of improving may outweigh the increased value of your home – especially if Brexit really takes hold of property prices
- You may not be able to afford to improve your home to the extent you would like
- Getting a loan may be cheaper than ever due to very low interest rates – so improvement may actually be easier than increasing your mortgage
- You get to improve your home to suit you – not the previous owner
Whether Brexit has influenced your decision or not, this is still a hard choice. But if you are fully informed, you can at least be sure you took the right choice for your personal needs.