At some point, most homeowners face the age-old question: Should we stay and upgrade our current home, or move to one that better suits our needs? Whether your family is growing, your lifestyle is shifting, or you simply crave a change, this decision has significant financial and emotional implications.
Claude McKirby, co-Principal of Lew Geffen Sotheby’s International Realty in Cape Town’s southern suburbs, advises: “The choice between renovating and relocating depends on your priorities—whether it’s location, space, or long-term investment potential. Start by identifying what’s driving the change.”
Key Considerations
What’s Driving the Change? Before weighing costs, clarify your motivations. Do you need more space, a better location, or modern amenities?
McKirby notes: “If the issue is purely space or layout, a renovation may suffice. But if it’s about schools, safety, or commute times, moving is often the better choice.”
He says factors to weigh – the pros and cons – of renovating include:
Pros:
- Stay in a familiar suburb
- Avoid moving costs
- Customise your home to your exact needs
- Potential to increase property value
Cons:
- Stress, delays, and budget overruns
- Living through construction disruption
- Possible zoning or structural limitations
McKirby cautions: “Always consult a professional before committing; some homes can’t be expanded due to site constraints.”
Relocating: A Fresh Start
Pros:
- Move into a home that already meets your needs
- Access better schools, amenities, or lifestyle
- No renovation hassles
Cons:
- Transaction costs (agent fees, transfer duties)
- Potential compromises on location or features
- Market conditions may not be ideal
“Relocating makes sense if your current area no longer aligns with your lifestyle,” says McKirby. “But factor in all costs. It’s not just the purchase price.”
Financial and Emotional Factors
Compare renovation expenses (design fees, construction, permits) against moving costs. A R2.5 million property could incur R100 000 to R200 000 in additional costs.
Don’t overlook emotional ties, says McKirby.
“A home isn’t just an investment; it’s where memories are made. Before making any decisions, consider how a move or renovation will impact your family’s daily life.”
The Bottom Line
There’s no universal answer. If your location still works, renovating may be best.
“This can add value to you home for when you contemplate selling in future,” says McKirby.
“If your needs have outgrown your home, moving could be wiser. Weigh the financials, but also think long-term. The right choice is the one that supports your family’s future comforts and wealth creation.”
McKirby’s final words of wisdom? “Whether you renovate or relocate, the goal is the same: a home that truly fits your life, creates value and accrues wealth.”
