Purchase New Or Renovate?
Is purchasing a new home better than renovating your current home?
Posted February 6, 2015
Should You Purchase a New Home or Fix Up Your Current Home
When facing this difficult situation, there are many different factors that you need to take into consideration. There are questions that you need to ask yourself. Once you ask yourself these questions, you will have a better idea of what to do. Two main things to look at are your current location and your budget.
Location Location Location!! If you live in a place where you love the neighborhood, then you need to make sure this replacement property offers you the same enjoyment. Depending on what City you live in can determine whether renovating your current home is worth it or too expensive. Sometimes it can be cheaper to purchase a new home. If the homes are less expensive then buying a new home may be more beneficial. If homes are in high demand then it may be better to add on or fix up.
When deciding to renovate, are you keeping the same floor plan or changing it? That can be a huge cost factor. Keeping the same floor plan can make the upgrade much easier and cheaper. The year of your home is the first thing you should look at. If you decide to renovate and your home is out of date you may have unexpected cost to meet new building code requirements. Plus, are these upgrades/ add on's legal? And are you upgrading the whole home or just part of it? You don't want half of the house to look new and the other half to look outdated.
You also have to consider the remodel and the hassles of going through it. It always takes longer than expected and cost more than estimated. Plus it is very un-enjoyable to live around. Also the renovation doesn't exactly mean you will get more for the home than before the renovation. You need to compare your home with those in the neighborhood. You may be putting too much money into your home compared to the neighborhood and your return wont be worth it.
When renovating you may consider financing and you must see how much more this is adding to your mortgage payment. Maybe purchasing a new home can get you a smaller mortgage payment. There is also property taxes to take into consideration. Will the renovation increase your current property taxes?
Ask yourself these questions and it should help you decide which is better for you. I hope this helps.