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Renovate or sell?

(15 Posts)
sellorrenovate Sun 19-Oct-08 09:08:25

The dilema is to renovate or sell. We have a victorian mid terrace in the SE. Bought in 1993 for 120K, current value?? who knows but houses on same street have gone for over 500k (fully renovated)in the peak.
The problem is we either need to spend 100K on completely renovating it i.e. new kitchen extension, open up loft to create 3rd bedroom, rewiring, replumbing etc, etc. It would be a case of moving out for 6 months to do the job properly & most efficiently.
However we ideally want to move to a bigger house with more outside space etc. We can afford to spend the money for the refurb and we don't need to move financially (but never intended this to be our family home) likewise if we could sell we could afford to upgrade considerably.
Would you go through the hassel of the refurb even though this is not "the" family house that we want to end up in, or accept a lower price (good renovation project for someone in current market) and spend that 100K on next house?

SqueakyPop Sun 19-Oct-08 09:10:46

You lose loads of money in a move (stamp duty, solicitor and estate agent fees, moving, doing up your new place). It's almost always more economical to stay put.

sellorrenovate Sun 19-Oct-08 09:26:09

I know but this renovation would have to include 6 months renting locally, therefore 2 moves and all the upheaval that comes with it.

SqueakyPop Sun 19-Oct-08 10:04:48

You have to list the details of each option, and the costs associated with them. Only you can really do that.

You also need to consider whether you have to do a complete renovation or whether it can be done in stages.

When we had our loft conversion done, we didn't move out. They do most of the work from the outside, and only break into the house to put in the stairs and connect up the supplies.

We had additional work done at the time that was disruptive to us, but we soldiered on. The work took about 6 weeks.

If you do move out, it's not the same as two complete moves, as much of your stuff gets packed and stored, not packed and unpacked twice.

lalalonglegs Sun 19-Oct-08 11:35:03

Loft extension and side return don't require moving out in themselves - depends if whole house needs rewiring/replumbing/new central heating etc as well.

The trouble with renovation projects at the moment is that few people want them since you have to factor in the price you pay for the property PLUS the price you will pay to do the work against the end value of the property. At the moment nobody knows what the value will be in six months or a year and, since renovation budgets are notoriously fluid anyway, you end up trying to add value in a market that is falling so fast you might end up spending more than the house is worth. It is also very difficult to get banks to lend against this sort of work at the moment so, unless you had a cash buyer or someone who only needed a very small budget, then I am guessing it would be hard to shift especially as, from the sound of it, it is quite small and more likely to appeal to childless couple or someone with one small child rather than a family wanting "forever home".

Since selling it is likely to be tricky, I would be tempted to renovate (btw, why haven't you done this before in 15 years [nosy emoticon]?) and that way, the house may meet your needs if you want to stay there or will be more sellable if you decide to move.

sellorrenovate Sun 19-Oct-08 12:45:43

Sensible thoughts lalalonglegs. Yes it does need a complete rewire, plubling, plastering etc.
We haven't renovated it earlier as we have probably only lived it in for a total of 2 years in the last 10, its' been rented out and we have been abroad.
Ah, decisions, decisions

bodycolder Sun 19-Oct-08 13:00:53

Why don't you just sell as is and attract a buyer who will want to do the work themselves then grab a bargain in your purchase rather than all the hassle of extensions and rental when in 6 months prices will be even lower?

sellorrenovate Sun 19-Oct-08 14:44:46

I tend to agree bodycolder - I guess that's why I've posted, in that I'm not convinced about renovating. I just can't get excited about it.

sellorrenovate Sun 19-Oct-08 14:45:28

I tend to agree bodycolder - I guess that's why I've posted, in that I'm not convinced about renovating. I just can't get excited about it.

lalalonglegs Sun 19-Oct-08 16:11:32

Oh well, if you don't get excited about renovations then there's little point doing them (I love changing things about). The problem is that, unless it is on a great street or has some fabulous school on doorstep, it might end up hanging about. Good luck with it. smile

bodycolder Sun 19-Oct-08 22:30:12

renovation atm is not profitable in any way.Just reduce the price get rid and move on!That is the only way atm.I have just bought a doer upper and it was 110k less than a 'renovated' house in the same road which is still for sale

sellorrenovate Mon 20-Oct-08 07:10:28

Thanks bodycolder, also our house is in a "good" road. Isn't there an adage that says buy the worst house in the best road if you can afford it?

KatieDD Mon 20-Oct-08 09:47:28

Yes you are right, worse house in the best street rather than the other way round.
I'd get rid personally. If you don't enjoy and have a really good eye for renovation then you could loose a fortune.
Just don't look back once it's gone.

missingtheaction Mon 20-Oct-08 10:19:54

my vote goes with get rid of it too - no point in going through all that hassle if you end up with something that's not really what you want.

also goodish time to upgrade as although you may get rubbish price for your house you may pick up a bargain from someone desperate (sorry)

sellorrenovate Mon 20-Oct-08 10:37:10

Right, off to chat with my "tame" estate agent this morning......

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