As the economy remains unstable after the unpredictable start to the 2020s, many homeowners are putting off purchasing their next property. With sky-high interest rates and falling house prices, it isn’t a seller’s market.
However, life hasn’t stopped and your needs may have changed. Perhaps you need more space or want a little more luxury in your life. So, the question is whether you should update your house during a recession or wait for things to be more stable.
Are We in a Recession?
Currently, we are not in a global recession but all signs point to that inevitability. Certain benchmarkers of a stable economy are thriving: employment rates are high, there are many jobs and wages are continuing to rise.
On the other hand, rampant inflation and interest rates are making life more expensive and people worse off. If these rates continue to rise, we may see suffering in other areas as companies and governments try to bring down borrowing.
Is it a Good Time to Renovate?
If you’re putting off moving, then renovating your house can be a great idea to get that ‘new house’ feeling in your current abode. Typically, recessions have been good times to renovate as contractors are less in demand and you may be able to pick up cheaper materials.
Unfortunately, Putin’s invasion of Ukraine has had an impact on the cost of building materials, making them more expensive than they might typically be found in a recession. Contractors, however, are still looking for work so there is both a negative and positive to the current climate.
Renovating carries a lot less risk in this current climate than moving and you can keep any fixed-rate mortgages and continue to gain equity in your property until this all blows over. Successful renovations can also increase the value of your property while providing you a more comfortable life.
What Renovations Are a Good Idea?
- Energy use-reducing features: As energy bills still remain unseasonably high, solar panels and wind turbines become attractive assets to your home. You can also opt for new windows and insulation which help to save energy without disrupting the aesthetics of your home.
- Adding an extension: A loft conversion, conservatory or adding space to your house is one of the best ways to increase your home’s value. Although this can be a costly endeavour, so long as it is done properly it will likely pay dividends.
- Update your heating: Underfloor heating can be a great way to add value to your home while creating a more comfortable living environment.
- Painting: A fresh lick of paint can really change a space, without breaking your budget.
- Garden: Working on the garden is a great way to make a house look more attractive and give yourself a space to relax and unwind. If you’re not a big fan of gardening, why not opt for some artificial grass to give yourself a perfect lawn year-round?
A recession can be a wonderful time to renovate your house and a perfect consolation to not being able to purchase a new one.
If you are just making changes to try to get your house to sell better when the time comes, then make sure to research what the most attractive features are to prospective buyers. You may also wish to hold off on certain renovations if they are made entirely to your taste. A fresh paint job, for example, can make a space much more inviting – but if you paint it neon green, you may scare off some buyers.