When your home stops working for you, it’s natural to think about ways to improve it. So which would work better for you: house renovation for a bigger home, or moving to something new entirely?
We’ve put together a guide for the pros and cons of each, to help you understand the best plan of action:
- The pros of moving house
- The cons of moving house
- The pros of house renovation
- The cons of house renovation
Moving house
The pros
What could be better than a completely empty house, ready for you to put your mark on it? If you need more space, buying a new house can help. You’ll gain extra bedrooms and bathrooms. Alternatively, downsizing to a smaller property can help you de-clutter. This could be useful if you need an extra bit of cash flow.
It could also be easier to make small renovations in a new environment. Finally, moving house means you’ll be in a new area. It’s your chance to get closer to your job, find a better neighbourhood, or get in the catchment area for the best local school.
The cons
Whether you’re moving up the property ladder or downsizing, moving costs money. There's mortgage and deposit costs to consider. There are also estate agent’s fees, stamp duty and lots of other associated costs.
You should also consider whether you want to leave your neighbourhood. You may not want to leave the comforts you’re used to and may find it difficult to settle into a new town.
There are other potential pitfalls of new home ownership. You may still have to do work to make everything exactly the way you want it. New homes sometimes need more renovation than you expect.
It’s important you let your insurer know of any change in address before you move. With AXA Home Insurance you can change the details of your policy to your new home address in your AXA Account1. If you change your details online, you won't pay an admin fee.
House renovation
The pros
Renovating your current home can be an easy way to get what you want. De-cluttering can open up lots of space. More extensive work, like putting up partitions or knocking down walls can change the feel of your home. Although it could be pricey, a renovation isn’t as expensive as moving. You can also leave your perfect family bathroom or the period fireplace in your living room in place.
Any changes you make to your home now can add value to the property in the future. Renovating now could increase the value of your home in 10 or 20 years’ time, when you’re more ready to move.
The cons
Renovations can be limiting. Planning permission for large extensions or basements are sometimes hard to obtain. You also only have the size of your plot to work with. If there isn’t room to expand, you won’t be able to grow.
Renovation work can be messy too. There will be disruptions, even from doing something as mundane as painting a room. Working on the kitchen makes cooking impossible. Building a new bedroom could leave people sharing rooms until the work is done. You’ll also need to notify your neighbours, as loud construction noises can affect them too.
If you do plan to make any major structural changes, remember to advise your home insurer. Your insurer can then let you know if these changes will affect your home insurance. Adding in new bedrooms, bathrooms and other rooms may result in your premiums increasing, or your policy being cancelled. The type of material used in these renovations may also impact your home insurance.
1 Changes to your policy home address will be subject to eligibility.
