Wednesday, 01 April 2020

Is It Wiser to Renovate or Buy a New House?

Written by Victor Whittle Posted On Sunday, 29 December 2019 05:30

In every household, there comes a point when they have to decide whether to renovate their home or move to another one. New kids, job change, and many other reasons come into play. 

While it makes sense to renovate a home to save money, in some cases, a family may choose to just relocate.

If you’re in the fence between renovating or buying a new house, it’s always important to weigh the pros and cons of each decision and consider your personal circumstances.

When is it wiser to renovate?

When you need a little more space for your growing kids or perhaps a new addition to the family, or when it seems like your home no longer makes you feel comfortable (like it’s supposed to), remodeling is a great solution.

Many families choose to remodel than to buy a new home because first and foremost - it’s cheaper. A 1,000 square-foot home, for example, will cost an average of $18,347 to renovate. Whereas if you buy a new house, you can expect to pay $200,000 for the same size. 

Staying in the same old house would also mean less adjustment for you and your kids. You’ll have the same neighborhood and your children won’t have to say goodbye to their friends (which can be stressful and emotionally painful for them). 

A lot has changed in the home improvement industry. New technologies, design concepts, and approaches have made it possible for homeowners to achieve a living space that meets their needs, despite the location or size of their home. If you’re considering remodeling your home, make sure to plan carefully. It’s recommended that you start with areas that needed repair or improvement before proceeding to the aesthetics of your home.

When is it better to move?

Sometimes, relocating and buying a new home is inevitable. Getting a better job offer or perhaps, avoiding toxic relationships with neighbors or relatives can signal the need to move. However, it also makes sense to invest in a new home if you feel like your family structure has greatly changed that you would need a much bigger or smaller home. For example, maybe you’re expecting and you and your partner are currently living in a tiny home. Or maybe you’ve reached the retirement age and your kids are all grownups and owning a big home is no longer practical. 

Moving marks a ‘fresh new start’ in life. Meeting new people, making new friends, and having a whole new different experiences are all exciting.

Making the Decision: Factors to Consider

When deciding whether to renovate your home or buy a new one, you should always consider several things. 

Reason

Are you downsizing? Upgrading? Changing jobs? If you’re simply want to have a stylish and more comfortable space, a renovation might be enough. But if you’re looking to have a “fresh new start” in life, then home buying is the way to go.

Financing

Next, see if you have the budget. Remember that it’s easier to finance a new home than a renovation project although you will likely end up spending more on buying a house. Usually, home remodeling is financed through a homeowner’s loan from a commercial bank. This requires a good credit rating and a higher interest rate.

Timeline

Needless to say, home remodeling takes time. It’s messy, stressful, and inconvenient too. If you’re contemplating a home renovation, it’s best to set your expectations right. Moving can be stressful too. Finding the right home is never easy. It’s best to hire a real estate agent who has local knowledge, background, and experience to help you.


Victor WhittleVictor Whittle is an acquisitions assistant for Prospect Group company. He has over three years of experience in the company. Victor currently settles California, and loves starting his day with a shot of espresso and cycling through his neighborhood.

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