Over time, you may realize that you have outgrown your current home. You may need a little more space, are missing several features, and there is a long list of necessary repairs that need to be completed. While you can always renovate your current property to meet these needs, sometimes it may be best to simply start over and buy a new house.
Let's take a look at the pros and cons of renovating your current property and purchasing a new house.
There are certainly many benefits to updating your current property rather than buying a new home. These benefits include:
Increases your property value – Many of the updates you make will greatly increase your home's property value. This means that if you plan to sell your home in the future, you will make significantly more than if you were to sell the home now. Plus, many projects such as kitchen remodels and home additions have a high ROI.
You don't have to leave your current location – If you live in a neighbourhood that you love, you won't have to leave. When you renovate, you can still enjoy the area but it becomes much better with the new and updated features on your renovated property.
However, renovating and making major updates to your homes certain has a few drawbacks as well. These drawbacks include:
Renovations can be expensive – Home renovations can have high upfront costs. You will need to be ready to make these purchases and give yourself a little wiggle room in case unexpected expenses arise that cause you to go over budget.
Inconvenient – One of the major disadvantages of a home remodel is the inconvenience it causes in your daily life. For major home remodels, you may have to leave your home for some time until projects are completed.
Financing can be a hassle – Obtaining the financing to complete major remodels can be a pain and a challenge to obtain. Often, applying for a mortgage makes more sense and is less stressful than trying to receive a loan for projects around your house.
There are many pros to buying a new home.
You can find what you want – If the list of projects you need to complete is long, you can find yourself a new home that meets these specifications and you don't have to deal with construction projects.
You can start over – Moving gives you a chance to start over in a new neighbourhood. If you don't love the area you are currently in, this gives you a chance to move to the neighbourhood you've been eying.
However, while moving sounds ideal, there are a few disadvantages to consider as well.
It is a lot of work – When buying new, you will have a lot of work to complete. You will need to prepare your current home to sell, go through the selling process, search for the perfect house, close on the property, and unpack. It can take several months until you finally feel settled in your new home.
You may spend more money – You may find that you spend more money in the long-run when purchasing a new home. You may need to make certain repairs on your current house to get it ready to sell. Plus, there may be those smaller projects to complete on your new property before it is move-in ready.
Buying or renovating a home is a major decision with many factors and pros & cons to consider. You will want to carefully think through the decision and determine which is best for you, your current financial situation, and your family's lifestyle.
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