spending money on house while house prices decreasing

[housquestion]

For context: We live in a Victorian terrace cottage on a nice street but in the less-posh part of a midlands town. We could have afforded a bigger house in the suburbs (the naice bit) but I have a disability which means I can't drive so being easy walking distance to the town, station, DS school and a decent secondary seemed ideal. So we got this terrace in a location great for us, planning on spending money on an attic conversion and small side extension. Its probably a 4-5 year house before moving to a forever home.

Anyway, now there is all this talk about a collapse in house prices. I'm still desperate to at least get the attic done have an ensuite and more space (three small boys not fun to share a bathroom with). But I chatted to the estate agent the other day who said there is a lot of uncertainty and we might not get our money back when selling.

Any advice?

I wouldn't for a 4-5 year house tbh!

I am in the middle of a £100k plus extension project on a house I bought last year. There is no way I would be doing this if I was planning. On moving in the next decade!!

house prices have risen in my area since I bought - but I know they are about to fall.

I am investing in my forever home and hopefully I have forty years left here.

I wouldn’t for a short term house but if you are going to stay longer it’s worth doing.
mMy house needs lots of work and I’ll slowly plod through it but I’m planning on staying out for at least 10 years

In the long term, property always increases in value. Thats why I wouldn't spend money on a 4 year house - because 4 years is nothing really.

you also have to think about the timeline. A lift conversation and side extension will take time to plan and build. I have been in my house for 18 months now. The extension isn’t finished yet and I started the planning process ten months ago.

will you have much time to enjoy the new rooms before you move?

We’re in a similar position. Our kitchen is in dire need of redoing (think mouldy work surfaces etc). Do people think it’s worth putting in a new kitchen to help sell it?

I take a different view to PP, it is your home and you could do with the extra space. Improving my daily life for five years doesn't need to balance the books within reason.

All sorts could happen, you could decide not to move on, the market is guaranteed to be different in five years.

I'd go for it.

I would put in a new kitchen in your circumstances. If I was planning in moving I wouldn’t put in cheaper (but still good) appliances and I wouldn’t go for quartz worktops etc. I am doing my kitchen so hopefully it will last and I am treating myself to little splurges. I would do these if I was selling in the next few years.

when I was selling my last house I replaced the kitchen doors and put in a new tap for example to make it look better. If I was staying I would have ripped the whole thing out!

4-5 years? I doubt you'd get the money back. If the agent says not, they're probably right.

You won't get the costs back in this timeframe, but you will make your house more sellable when the time comes & have a better quality of life in the meantime. That's as long as you can afford the mortgage increases that are coming for the next 5yrs.

Thanks everyone! Food for thought! The quote for the conversion is 40k which is 20% of the house cost.

@thewallisblue I would def do it on a budget.