Would you invest £100k+ on a renovation if you knew you were never going to get it back?

[Procrastinator4]

We are moving house and have chose to move close to family for support with our children amongst many other reasons. The intention is for this to be our 'forever home' and we will not be moving again.

My family do not live in a desirable area, but it certainly isn't the worst. We are planning on spending approx £200k on purchasing the house itself, and then will spend at minimum £100k renovating. The renovation is crucial for me as I want everything new and to a very high standard (Miele appliances, CP Hart bathrooms) etc. I know we will never get this money back when it is I imagine sold by our children in the future.

I'm well aware that whilst this is the plan, things do happen and we may end up having to sell for whatever reason. My ultimate question is, would you invest all that money in your home with the knowledge there is no chance you will ever get it back?

if its definitely your long term home yes I would as you have to live in the house and if you had to compromise on what you want you wouldn't be happy with what you had and your children will reap the benefit when you are gone as house prices will have risen so the house would sell for more than you have paid hopefully my OH and I only bought our house last year a doer up and we are in our 60s, but I know what I want and though we wont gain from any price rise in value my OHs only daughter will when both of us are gone as he owns the house and I will have a life interest in living here

I think if it’s your long term home then do what you like to it. I do however wonder why you’d want to, potentially, spend £30,000 on a bathroom in a £200,000 house.

No. Not on a house that was originally worth £200k.

My house is limited in its maximum value by having no garden and a really shit looking front 😁 I spent more on an extension than the house value went up by. I was happy to do this as I wouldn't want to sell unless I won the lottery. No regrets 5 years on. If you won't want to move, go for it.

yes, if you plan to stay put for quite some time then why not spend the money making the house somewhere you love? We are about to start the process of completely stripping back our house and redoing wiring, electrics, insulation etc and then redecorating afterwards. Not to increase the value but to increase the liveability of a house we intend to stay in long term!

I probably wouldn't unless it was money you have from the sale of your property. If its any kind of loan or mortgage then no; what if death / divorce / redundancy hit you, then you'll be in negative equity

No. I wouldn't. I suppose it depends how much that 100k will stretch you, if you need to borrow to do it, if you will still have money for quality of life things that aren't objects, if it leaves you without any sort of cushion for illness or redundancy.
If you're completely gutting, the labour will be the expensive thing, the fittings less so proportionately. Do you have family in the trade?
What's that saying about it's better to buy the worst house in the best street you can afford, than the best house in the worst street?

I would if it’s your long term home and you can afford it, it’s only houses people expect to get their money back on every penny they spend, no one thinks this way on cars, holidays, clothes etc. I spent a fortune on a car with the full knowledge it will just depreciate in value, but to me it’s worth it because it’s a beautiful car that I love to drive and has given me loads of pleasure, same with some very expensive holidays I have had. At least with a house over a long period of time they do hold their value and generally go up over the years, so in the long term your investment would probably be ok anyway.

Absolutely not no.

If you’re going to spend a long time in the house and you can afford it absolutely. I agree with a previous poster who said nobody thinks that a holiday or car is a waste of money.
I dread to think how much we’ve spent on holidays over the past 10 years and we’ve not given it a second thought. So I’d definitely spend it on house improvement.

Can you afford to?

Will it make you happy?

If yes then yes do it.

No. Cant see the point of putting really high quality fixtures that cost 50% ish of the value of the house.

You're not investing it but spending it, just like you spend money on a flash car or an exotic holiday. If you have the money available and that's how you want to spend it then, why not?

That’s crazy, you say the area’s not the best, why not buy a £300k house ina better area? Ultimately how much happiness is an expensive bath going to bring you?

We did the same and I don't regret it. We live in a flat on the main road. A house of the same size and basic spec would be £100k more.

So we stayed put and bought the dream bathroom and kitchen. And I love it. It's like living in a top hotel.

We are in the middles of doing exactly that. It's not a sound investment financially, but it's our home and I want it to be beautiful so it's a 'quality of life' investment.

Absolutely worth spending money on making somewhere you'll spend the rest of your life beautiful. Miele appliances are worth the cash for sure. CP Hart bathroom stuff is amazingly expensive though - you can get just as good for far less.

If you plan to stay in it long term, then yes I would. If it will add to the quality and enjoyment of your day to day life, then yes. As long as you recognise that you're doing it for that reason and not expecting to get the money back if you should unexpectedly have to sell. I knew a family who spent over a third if the value of the house on a large extension, reconfiguration and many improvements. When they had to sell due to unforseen circs later, they obviously didn't get back what they'd spent but instead recognised that spending that money had made that house work for them as a family as they grew. It's about how you perceive that spend really - enjoyment of home life or the hope of financial recompense/gain.

Hmm. Not if it took the house
Beyond the ceiling for the road. You say your dc will probably sell the house. When? If you are in your 30s that's in 55 years. Even top of the range kitchens and bathrooms start looming tired and dated after about 15 years btw so I'd venture caution. Spend another £50k on a better road and compromise on fittings.

If this is your house for the rest of your life (or at least nearly), then go for it!

I would always spend the money on a better location.

Our local independent bathroom fitting/plumbing shop sells mainly the same brands as CP Hart but for up to 30% less as they don’t have a big fancy showroom.

You would want those fixtures whatever the price if they house and as you are the kind of person who wants ‘everything new and to a very high standard‘ you will almost certainly be ‘needing a new kitchen / bathroom’ in 10 years anyway due to changes in fashion etc.

So don’t look on it as an investment, it isn’t. An extension, re-wiring, a loft conversion is investment, but high spec kitchens and bathrooms are a luxury spend. Spend it if you have the money without compromising pensions etc, and want it.

I'd spend money on improvements. But you need to realise you are not only living with the results but you are also leaving less to your kids. It's a case of which feels right to you. If the kids are already showing signs of being high achievers then crack on and Miele to the Max . If they might need a bit more if a head start re think ?!

If the house is only £200k, buy a better house! Or one in a better location. You have a £300k budget so there must be a more desirable house for you? My house does have Miele and expensive bathrooms but it’s worth over 10x the value of yours.