Whether you’re expecting a new addition to the family, welcoming one of your children back into the family home, or simply wanting to extend your living space, the first thought that often springs to mind is, “should I sell, rent and move or extend my property to accommodate the demands of my lifestyle and family?”
Whatever the reason, any change in circumstances in the home can open up a can of worms when it comes to deciding the best option, both financially and practically for you and your family – whether that’s renovating, selling or renting.
But what’s the best way to maximise a return on investment whilst accommodating the growing needs of your family?
Sometimes moving or renting out your existing property in order to purchase a new one might seem a little extreme. The good news is that there is another option available. Renovation will allow you to gain extra space, without having to sell up or move. After all, the costs involved in moving or renting out your property can run into the thousands once you take into account solicitors fees, estate agents and surveyors.
Renovating a property can be both exciting and daunting, but it can also return a healthy profit and that much-needed extra space. Here’s a list of things to think about if you’re considering renovating your home.
Renovation projects require thorough planning, a good eye for detail and a cash fund that will deliver your vision without leaving you out of pocket.
Employ the right people for the job
If you are considering any major renovation project, it’s highly likely that you will have to employ the services of specialist builders that are able to help with fitting, plumbing and electrics, as well as a number of other services that require specialist skills.
Before embarking on any refurbishment project, it’s worthwhile carrying out extensive research to ensure that you employ the right people for the job – check references, ask for examples of previous work and ensure that your tradesmen have the appropriate certification.
As your renovation project progresses, it’s very easy to quickly lose hold of your budget, this is a common mistake that many people make, and the well-known saying, “it cost twice as much as I’d thought it would,” often rings true.
The key to making a profit is setting a budget (one that you can afford) and sticking to it. So, many people limit their potential profit due to failing to plan and prepare. Don’t be vague and pluck figures out of the air, it’s important to have fixed estimates that cover every stage of the renovation process from the materials you need, to the day rates of the builders you employ, it’s important to plan for every unforeseen eventuality.
Although taking on credit can be a scary prospect, with massive projects such as this, it is often unavoidable. Once you’ve have set and allocated your budget, cross check this against what you can afford. You might need to look at options such as loans, credit or re-mortgaging (if this is the case, it’s wise to check your Experian Credit Report or similar).
Understand what is involved in the job
At first glance a property might not seem like it requires substantial work to accommodate your change in circumstances. It’s not until you begin the work that you might find that you are out of your depth, and most of the time it’s your finances that are causing the greatest concern.
Lack of experience and understanding of the building industry often leave people shocked by the level of work involved. Basically, sometimes it’s easier and cheaper to move or rent your property – you need to carefully plan and consider the level of work involved before making any major decisions.
In terms of budget you need to consider, how much work will be involved? Will you have to employ the help of specialist tradesmen, experts or industry professionals, and have you explored your budget to ensure that it accommodates the project as a whole? Will the work leave you out of pocket?
But most importantly, you shouldn’t be put off from embarking on home renovation projects, they can be far more economical and practical than deciding to sell your existing property.