Would You Improve Your Home if You Won the Lottery, Or Invest in Your Dream Property?

Would You Improve Your Home if You Won the Lottery, Or Invest in Your Dream Property?

How many times have you dreamed of what you would do if you won the lottery? The odds of winning, under the National Lottery’s current 59-ball system, stand at just over one in 45 million. Fairly long odds, perhaps, but all it takes is a single lucky ticket and you could be walking away with millions.

So how would you spend a lottery jackpot if you won? One of the first things that people commonly dream about doing is sharing their winnings with friends and family. Based on a hypothetical win of £10 million, Lottoland’s Big Lottery Survey found that most people would give between £1 million and £5 million to family members. Friends are likely to fare much less well, with more respondents (22%) opting to give them nothing at all rather than any other option! Most respondents also felt that charities deserved only a meager 1% of their winnings.

In terms of possessions, property is top of the list for many ‘jackpot dreamers’ but would you opt to move or improve? And which would offer better value?

 

The case for home improvements

Compare the Market explored the idea of adding value through home improvements in some detail recently. Lottery winners looking to make their money go further by adding value to their home would be best to start by adding an extra bedroom. Doing so will add an impressive 8.8% on to the value of the average home. Loft conversions come next, increasing a home’s value by 7.1%, while an extra bathroom adds 6.1%.

Even practical touches can make a surprising difference when it comes to home improvements. Adding wood flooring can add 2.0% to the average home’s value, while creating space for off-street parking adds 5.2%. Throw in a landscaped garden and there’s an extra 3.6% to be had.

Lottery winners thus have plenty of scope to use their money wisely in order to add value to their home. But what about those who dream of something new entirely?

 

The case for buying a new home

Of course, the flaw in the home improvement plan is that you’re stuck in the same location. What if your lottery win dreams encompass a life overseas? It’s commonly said that money doesn’t buy happiness, but you can certainly buy property in the world’s happiest country if you win the lottery.

In 2019, Finland was once again ranked the happiest country by the World Happiness Report. Its generous people, lack of corruption, impressive GDP, free social structure, and stunning scenery seem to provide the perfect setting for a carefree existence.

Buying your dream home is certainly something that former lottery winners have enjoyed doing. Winners Lara and Roger Griffiths spent £670,000 of their £1.8 million win on their dream home, as well as buying two properties to rent out. Denise and Paul Hardware also spent their winnings on property, moving from Wales to their dream home in Somerset, as well as picking up three investment properties along the way.

As a stable, long-term investment, little beats bricks and mortar. So which would you choose if you hit the jackpot – creating your dream home in the property that you already know and love, or upping sticks in the pursuit of happiness in a brand new home?

Author – Mike Mortimer
Image by skeeze from Pixabay