Houses are a lot like your income – the bigger it is, the more you expand your lifestyle to accommodate it! Perhaps that’s why the tiny house movement is making great strides of popularity in the
UK, as more people embrace a minimalist mentality to match a new-found frugal expenditure!
If your house is feeling a little on the small side to accommodate your needs, your first thought may well be to move to a bigger one. But what are the benefits that could be gained if you chose to consider extending your property?
To a certain extent, this decision is often governed by the state of the housing market at the time. If prices are rising rapidly, it can make sense to capitulate on this trend and relocate to a larger property. You may well make money as you progress up the ladder.
If the housing market is a little stickier, then a longer-term decision to invest in renovation and extension works might be a good choice for you.
The decision to relocate or extend your property should be a considered one, that takes into account the financial benefit of each.
When buying and selling a property, you will have to pay for fees such as stamp duty and legal costs. Check out a handy blog we wrote that gives you a lot more detail about the cost of moving house.
If you decide to extend your home, you’ll save money on things like stamp duty, but you need to make sure the juice is worth the squeeze! For instance, there’s no point spending £30,000 on an extension, only to increase the value of your home by £20,000!
Most extensions pay their way, and many can yield a profit. Results will vary of course from area to area.
Choosing what to extend will largely depend on your requirements of course. It’s worth noting that, by large, adding an additional bedroom onto a house will have the most significantly positive impact on its future sale price.
Nationwide figures suggest that a loft conversion could increase the value of your property by 21 per cent, while adding an extra bedroom through an extension might add 11 per cent. Adding a conservatory might add 10 per cent in value.
The decision to move home is a big one, there are a lot of things to consider. If you love your home and want to buy some more time to stay in it, extending might be the perfect option for you. The chances are, you’ll have added significant value to the property price when you do decide to move on.
On the other hand, with prices in the Midlands faring far better than the national average, now may well be the time to take the plunge and put plans into action to make your next property move. You could well benefit from the relative static of other house prices!