Do I move or Do I extend ???
There are definitely a few things to consider before making this choice. I will try my best to give you a complete overview of your choices so you can make the right decision.
Before looking at the facts you need to think about whether this is a head or heart decision and what your end goal is. I will finish up by talking about the end goal but first you need to understand your heart is always looking for the end game. Make sure your head is in control of the decisions … for now.
Max price in the area
Before you look into building on your existing property do a little research in the surrounding area for properties similar to what yours would be if you extended and try to come up with a figure that your “newly extended” home would be worth. Have a look at Rightmoves price comparison report or Zooplas sold prices section for some similar properties. Every area has a max price and your build may put your home above it, This is key because if the cost is higher that the value gained your down a step on the ladder. You have in effect lost equity in your property.
Build cost vs Capital gain
As I have just mentioned do your research before you commit to anything. It is worth inviting a local estate agent to value your property as it is and how it could be. Then compare the growth in the value of your extension. Keep in mind you will require a local architect and planning permission. Which will both add to the cost. Make sure all quotes are detailed and in writing.
What is wrong with where you are
Why do you want to gain more space. If it is because your family just can’t fit anymore then keep reading. You are doing the right thing. Family comes first above time and space. Is it because your two little ones are always fighting and you want more space to separate them well if this is the case and the figure work out get it done. If you want the space for the mother in law to have a room when she stays over … pocket the cash and pay out for a travel lodge when she is over.
Don’t forget it costs to move
Have you come to the conclusion that extending your current home is not going to make your money back if you build and now you need to move to a larger home. Keep in mind that the price you achieve on the sale is not what you have towards a new home. There are solicitor fees, estate agents fees, and moving fees. There are more but I will cover all these costs in another blog. People seem to forget the fees and then really struggle when they move. Look up a cost calculator for moving online or have a look back here in a week when I will blog on the subject and give you a handy PDF to download.
Are you likely to need even more space in the future
Don’t move to the wrong house. There is no feeling worse than moving in to your new home and realising its only slightly bigger than the old place. Compare measurements of each property. If you look at the EPC for each house it gives the total square footage of each property. Only move to the right home. Don’t be pushed to move by Friends,family or your estate agent. This is your choice and its a big one, you don’t want to be moving again in a couple of years.
Are you moving to your forever home
Just writing those words made me nostalgic of when I first started out in estate agency. I worked with a girl who we shall call CS. She was incredible at everything to do with working in an estate agency and now she runs her own branch because of these skills. However one thing she said all the time was “are you looking for your forever home?” if they said yes she was as excited as they were to try and find them that forever home. This was because it was all about heart from this point on. They were looking for the house the kids would be raised in and the house they would grow old in. CS loved being a part of that. So will you when you find “your forever home”
I hope some of this helps and I look forward to seeing you all again in my next blog The costs of moving home.