Moving Vs. Renovating – Which Is Right For You?
Moving Vs. Renovating – Which Is Right For You?
So you’ve moved into your dream home, and at first, everything was perfect. But as time went by, you started a family, which has now quickly grown in size. What once was the ideal house, now seems small, and even at times claustrophobic. Sound familiar?
You’re not alone. Each year thousands of families make the difficult decision of moving vs. renovating for a variety of different reasons.
Which one is right for you and your family? Let’s take a look at the advantages and disadvantages of each.
The Advantages of Renovating:
- You can remodel your home exactly as you like
This lets you have full control over how everything is created and looks, to suit your exact tastes and living requirements. If you were to sell your home and move to another, it is one which has been designed for someone else, not for you.
- Use home equity to pay for the renovation
Instead of taking out a new home mortgage, you may instead be able to use your home as collateral and to borrow against it to fund the cost of the renovation. This can be a lot easier, and cheaper than a new mortgage.
- Stay in a neighborhood you love
If you already love where you live, renovating lets you stay there. This is a major bonus if you enjoy the area, as well as the local schools, and don’t wish to uproot your family’s lives.
- Save money
Renovating isn’t cheap, but it lets you save on other costs such as real estate commissions, moving costs, and any additional touchups you would inevitably make once you move into a new home. Generally, the cost you invest in a remodel versus the return is between 60-80% of the total price.
If you plan to DIY any of the renovation work yourself, then you should consider the following health and safety tips while working on your property.
The Disadvantages of Renovating
- Unexpected expenses usually occur
When taking on an extensive remodeling project, it almost always leads to some unexpected problems which you did not factor into the time or cost. In large-scale renovations which include knocking down walls, shifting plumbing, and adding extra gas lines these unforeseen expenses can cause you to go over your budget quickly.
- Remodeling is inconvenient
The home improvement process can be highly stressful and time-consuming. You have to deal with budgets, contractors and contracts, choosing products, and also possible delays.
Also, depending on the extent of the renovations, you may find yourself living in the middle of a construction zone for months on end. During the worst of the construction, you may need to even stay with friends or family, or in a hotel.
- The renovation may not provide a return on investment
Renovating your home is more cost-effective than buying a new one. However it is rare for the home value to increase by the amount you spent on the renovations.
The Advantages of Moving
- You can choose your location
While you can decide to move into a bigger home or downsize to a more cozy space based on your needs, another advantage is that you can choose the physical location of your home. Do you want to move to a better neighbourhood? Or perhaps you want to move from the city to the suburbs, or even to the country. Also, do you want to live closer to better schools for the kids?
All of these options are only available when you move to a new home instead of renovating.
- Say goodbye to a construction zone
If you are going to remodel your kitchen or bathroom, then moving can save you from having to live as part of an invasive project surrounded by mess, and with stress levels quickly rising.
Overhauling a kitchen can take months, which would mean you have nowhere to prepare your own food. Not only is this inconvenient, but the costs can also add up fast.
- Avoid dealing with contractors
Remodeling your home may seem like the best option, but having to deal with contractors rarely is without problems. There is always some unexpected issues which arise during building or renovating a home. Ask yourself if you want to deal with any unexpected expenses or problems.
- Enjoy a 100% Turnkey Home
When you move to a new home, you have the option to find one which has already been upgraded and renovated exactly to your specifications. This means you get to enjoy the home, without having to do any of the work yourself. Just pack your belongings, and you can move right in.
The Disadvantages of Moving
- You may not find a home you love
In the current housing environment, there is an undersupply of inventory available. This means that there may not be many options available in your preferred neighborhood. You may find a home which provides some of your must-have features, but not all of them. This may lead to you needing to compromise on your wishlist a little.
- Leaving an area you love
If you already love the neighborhood you live in, and you can’t find a home which suits your requirements, you may need to move to another area to find what you are looking for. This can be a considerable disadvantage. While you may love your new house, what will happen if you don’t enjoy the area you moved to, or if your kids hate their new school?
- Moving to a new home is time-consuming
The time it takes to research and find a new home, obtain financing, as well as selling your current home, can be a major inconvenience. Not only is it time-consuming, but it is one of the most stressful situations you will experience in your life. Trying to plan too move into your new home to align with the date you need to move out of your old home can be a nightmare.
- Moving home is expensive
While you may find a bargain on the home you plan to buy and find yourself under budget; you also need to factor in all the additional costs.
You will need to pay real estate agent commission when you sell your current home. There may also be additional closing costs for both homes. You also need to factor in moving costs, and the costs of any upgrades you wish to make to your home such as new carpet, paint etc.
Should You Move or Should You Renovate?
Trying to decide whether you should move to a new home or renovate your existing home is often a difficult decision.
While there is no easy way to determine what you should do, by asking yourself the following questions it makes the process easier:
– What are your home goals within the next 5 or 10 years?
Do you like your home, and is it in a good location for your family and job? Then it makes sense to renovate.
– Do you have plans to move in a few years anyway?
Then perhaps you should stay in your current home without remodeling. It doesn’t make sense to remodel financially, as you won’t get all of your money back.
– What is your lifestyle, currently and in the future?
Have your kids moved out of the nest, graduated college and are starting their own families? If so, then you don’t need a larger home, and perhaps a remodel will work best.
– Is your family quickly growing?
If so, remodeling a smaller space may give you temporary extra space, but you may find yourself in the same situation in future. A move makes more sense in this situation.
– What are your finances like?
Moving can become very expensive. Remodeling also can. Make sure whatever you decide, you can afford to repay what you borrow.
Whether you decide to renovate or move to a new home – you should pick the option which will give you your dream home, both now and for the future.