There comes a time in many families lives when they realize their First Home no longer fits their needs. Maybe more space is required for a growing family or a pay raise allows you to upgrade to something a little nicer. Before deciding whether to renovate your current home or move into a new one, there are a lot of things to consider.
First, you have to think about finances and your future plans. What is your current home worth? What would your new home budget be and would it provide you with a significant improvement in the current market? What is you dream home? Could renovations even make this possible within your budget? These are all things to consider very seriously when making your decision.
After you ponder these things and determine that both options are possibilities, there are some more specific pros and cons to each choice.
♦ Fresh Start – Moving allows you to start fresh with a new house in a different location. Whether you go across the street or across the country, it is a very exciting change.
♦ Taxes – In some cases, moving can qualify you for certain tax breaks and your new location may have cheaper taxes. Keep in mind, however, it may be more expensive as well. Be sure to ask your realtor about all of this when looking.
♦ Getting A Mortgage – A new home can allow you to go into the mortgage process with more experience and maybe more money than you had before.
♦ Moving – Moving is a brutal process. With packing and shipping and unpacking, it is an extremely stressful process that many people would like to avoid if possible.
♦ Cost – There are a lot of fees associated with moving. Aside from house price, paying for movers and realtor fees alone can seem overwhelming. These are the major two, but other costs can sneak up on you as well.
♦ Your Design – When looking at a new home, you often have to accept that there will be one or two features in every house that you are not in love with. When renovating, you can make sure everything is designed and carried out to your exact specifications.
♦ Keep Your House – Renovating allows you to have an updated version of the house you originally fell in love with. This allows you to keep your community connections and be in the same neighborhood.
♦ Unpredictable Expenses – Often times when doing renovations, issues will be found under the surface that can cost extra time and money. This can force you to exceed your budget or have to cut out some of the changes you would have liked to make.
♦ Huge Mess – While your renovations are taking place, your home will be a mess and in some stages, may be unlivable. If you can stay, it will be loud and stressful. If you have to leave, hotels and other expenses add up quickly.
While these tips can help you decide whether to renovate or move, sometimes there is a third option, both. If you have an ideal home in mind that can’t be created out of your current house, it can be hard to find it on the market as well. Buying a house that has the space you need and many good characteristics, but could use work, can be a great option. Houses that require some work can be bought cheaply and renovated into the home of your dreams. Products like the Norcom Dream Home LoanTM even make it possible to finance your new mortgage and renovations together, all in one loan.
Whether deciding to move, remodel, or both, it is hard to go wrong. The most important thing is to make sure the decision is well researched and that the entire family is on board. Accomplish that, and you will be sure to make the right choice.