There will always be something you want to change about your house, but is it always worth the renovation? Most of the time, you won’t get as much value out of your house as you put into a renovation, but maybe you don’t care as long as it is yours. Here are a few tips to help you decide if it would be worth renovating or if you should just move to a house that fits more of your requirements..
Ten things to consider
Though you may not have an answer on whether or not to move just yet, the St. Louis Post-Dispatch has a few things for you to consider.
1.Location: You need to figure out if this is where you want to stay forever or not. Do you like your neighbors, the schools, the parks nearby? Do you like your distance from work?
2.Structure of the existing home: If you don’t already like the layout, there’s not a whole lot you can do to change it.
3.Lifestyle impact: A renovation typically requires cash on hand. That means you may have to cut back on your lifestyle to renovate and find another place to live.
4.Return on investment: Is it worth it to renovate a home in your area? Or will you end up being a little overdone compared to the rest of the houses? This could seriously impact how much you think you’ll get out of your home value.
5.Financial impact: Renovating means paying out of pocket, whereas a new home will just mean one loan paid over 30 years. Can you really afford to pay for significant changes in the house?
6.Cost comparisons: How much more will it cost you to buy a new home vs remodeling this one or will it be the same? Look at everything, including gas for a longer commute time, extra utility expenses in a larger home, and even the cost of water for a bigger lawn.
7.Future outlook: Are you planning to stay here forever? If not, it may not be worth the renovation. You’ll want to consider whether or not you could realistically live in the house while your children are growing up and after they leave the home.
8.Time impact: If you buy a new house, you’ll need the time to look and sign all the loan documents. If you are remodeling, it will take significantly more time to make design decisions, hire contractors, and monitor the progress.
9.Long term vs short-term expenses: Moving usually means a ton of money all at once, whereas a renovation can be done by doing a little here and a little there.
10.Potential price breaks: Can you get a deal on new cabinets? Or a deal on a new mortgage interest rate? Figure out where you can score the best deals based on who you know.
If you think about these questions, you should have a much better idea of whether it is better for you to just move to to renovate the house you are in now.