Renovate or relocate?
When renovating makes more financial sense
REMAX Southern Africa has advised homeowners to weigh the real costs and long-term value of renovating or relocating. While upgrading an existing home often makes more sense financially if the property is well-located and the improvements are done strategically, sometimes the home simply can no longer meet the needs of the family.“It is a common question to ask whether it is better to move or make improvements to their current home,” says Adrian Goslett, CEO and Regional Director of REMAX Southern Africa. “In many cases, renovating delivers the lifestyle upgrades people desire without the heavy transaction costs that come with selling and buying. However, this only works when the home is already situated in the right area.”
Relocating can be the right decision when a home is no longer meeting the needs of a family in ways that renovations can’t fix. Whether it is persistent safety concerns, commute strain, or zoning limitations. However, homeowners should go into the decision with a clear view of the full financial picture in mind.
Selling typically involves agent commission, compliance certificates, and moving costs. For buyers, this includes transfer duties, bond registration fees, legal costs, and interest rate changes that can all add up and potentially outweigh the price of a sensible renovation.
Smarter move
Renovating tends to be the financially smarter decision when the home is in a desirable area where demand remains high, and when home improvements will align with what buyers in that neighbourhood are willing to pay for. The downside is that renovations can be stressful and very disruptive to everyday life within the home.
“If you’re already in an area that suits your lifestyle and holds resale appeal, improving the property can be a more cost-effective way to grow your investment over time,” explains Goslett. He further adds that the most value-adding renovations are those that improve functionality and attract broader market appeal.
“Kitchens and bathrooms consistently deliver the strongest return on investment, especially when the finish level matches neighbourhood norms. Additional living space, such as converting underused areas, adding a bedroom, or creating a work-from-home zone, can also lift value if the property remains price-competitive in relation to nearby homes.”
Homeowners are cautioned against overcapitalising. The key is to understand the ceiling price in the area and keep renovation spend proportionate. Goslett recommends starting with a professional comparative market analysis to estimate what the home could realistically sell for after upgrades.
“Ultimately, the best choice depends on your goals, your suburb, and your budget,” says Goslett. “The smartest homeowners are the ones who run the numbers first, get expert advice, and renovate with resale in mind. When done right, upgrading your current home can deliver both a better lifestyle now and a stronger asset for the future.”