To Renovate or Move - That Is the Question!
You've outgrown your home for one reason or another and are wondering whether you should be renovating or moving out altogether. If you're adding up the finances of both options, here are a few things to ponder.
Financially speaking it usually works out to be cheaper to renovate your home than to upgrade it once all of the fees have been taken into account. You will have to factor in higher mortgage payments, land transfer and legal costs on top of the move itself. When you look at the cost of the renovation only versus a new home purchase, it usually works out cheaper to renovate. This, however, also depends on the extent of the work involved, of course.
Cheaper isn't always better
While you may save some money by renovating, there are a lot of other costs to consider and they don't all involve money. If a larger project is going to be undertaken, chances are good that you will have to leave the house during the renovations until they are done. In some cases this can mean months of relocating, which can be quite disturbing and unsettling especially if you have children.
Many people that have to relocate are not happy during this long period and are just living their life waiting for the construction to be completed. If you've ever worked with construction and renovating companies before you know firsthand how things can get backlogged and how the waiting game can get extended beyond the date estimated for completion. It can become pretty frustrating having to deal with this situation.
You'll also have to consider the fact that renovation budgets are not written in stone. It's always a good idea to factor in approximately 25% extra to the renovation budget to cover any extra costs that may come up.
Keeping this in mind, are you prepared to take on 2 separate moves? One out of the house and one back into your newly renovated home? This can sure be a lot of work especially if the two moves occur within a few months of each other.
Take a good clear look at all of the different costs involved with purchasing a new home or renovating. There may be some things that you haven't taken into account on both sides of the coin. Sometimes renovating is the best solution while at other times finding a completely new home is the right answer for everybody involved.Posted by on