Are you tired of your current home but unsure if you should make a few upgrades or consider selling?
When it comes to your home, knowing when to move and when to renovate can be challenging. Our lives are constantly changing needs. Whether you are looking for more space, trying to increase the market value of your home, or just wanting a change in scenery, it's important to assess your current situation and prioritize what would make the most sense for now and the foreseeable future.
Moving into a new house might reduce the cost associated with renovation. However, it might require a significant shift in lifestyle from different neighbourhoods or schools. If renovation is an option worth pursuing, it's important to consider how much time and money you are willing to invest into transforming your existing space.
Making this call well thought out is important so that whichever path you choose fits your life and optimally serves you. In this blog post, we'll explore the pros and cons of each option to help you decide what's best for you.
Financing First
Whether overhauling an aging home with a sinking foundation or buying bigger in a hot real estate market, those decisions are guided by budget. Although it’s not the fun side of renovating or relocating, it is important to be able to afford the change. Want help restructuring your budget to support your investments? Read these tips to help.
Budgeting begins by gathering information and having some building knowledge. Then, especially when considering such significant investments, have an idea of your household's 5- and 10-year plans. Make sure your investment fits the plan.
Seeking information to help better understand your mortgage? Contact us today.
Consider the Pros and Cons
When considering a decision, weighing the pros and cons of all available options is important. Evaluating each option allows you to make an informed choice based on the possible results of certain decisions.
Tips for Renovating
Do Your Research
Before making any major purchase decisions regarding materials, research all your options and narrow down to what is necessary and within your budget. Before going in, do not underestimate the costs; make sure your budget reflects market research.
Don'tit's Over-Renovate
Many people are convinced the only way to increase their home value is by having high-end finishes and expensive remodels. Yet, people often don't see an equal return on spending. Sometimes, simple remodels end up having the highest returns.
Realistically Budget
This includes getting multiple quotes on projects, not comparing your homes with ones you see on TV, being honest with yourself, and always budgeting for unforeseen costs. Extra costs always arise, and you must expect and plan for them.
Be Patient
Most projects take a long time and require planning and saving up beforehand. Please do not rush this process, as it avoids costly mistakes later.
Tips for Relocating
Start with a Mortgage Pre-Approval
By getting a pre-approved mortgage rate, you will better understand your financing situation to afford the house better.
Choose a Location Early
You'll want to decide where you want to call home and research the location extensively, including its crime rates, transportation connections, quality of education in local schools and universities, jobs in the area and general culture.
View Homes Smartly
It's essential to pay attention to signs of deferred house and property maintenance when visiting potential properties - peeling paint, creaky staircases, guttering etc. It can also be helpful to investigate the house history - i.e., has there been any previous renovation or damage?
Plan for Closing Costs
The relocation process is expensive. When calculating the closing costs, as a rule of thumb, add 1.5% of the cost of the house. This amount covers a professional home inspection, lawyer or notary fee, land transfer tax, property/utility bill adjustments, and property insurance.
Are you overwhelmed by the relocating process? Make sure to read up on other tips for homeowners here and here.
Bottom Line
You should now better understand when it's time to move and when it's time to renovate your home. Remember to get financing first if you decide that relocating is your best option. And if you choose to stay and renovate, there are ways to do so without breaking the bank. Whatever you decide, we wish you the best of luck!
Considering relocating and hung up on your mortgage? We'd be happy to help you through this process every step of the way. Contact us today.
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