Renovate or Relocate? Answering These Questions Can Help
When it comes to deciding whether to tackle a large-scale renovation or opting to just move to a new home altogether, there is a lot to consider. Both options have the potential for substantial financial and personal benefits.
As is often the case with big questions, the answer may lie in how you respond to smaller questions. Below are six questions you should ask yourself as you’re weighing the options between renovating your current home or moving to a new one. While they’re not the only questions, these will help put that big picture into focus.
- Is there an urgent reason you’re considering leaving?
Whether the reason is new job or to help support a family member, sometimes you just need to do what you need to do.
- Have you been in your current home for more or less time than originally planned?
Always good to remember what your original plans were and think about if and how they’ve changed.
- Is the estimated cost to renovate greater than the equity you have built in your home?
If you’ve built up enough of it, your home equity is a phenomenal asset to tackle renovation projects.
- Is the living situation flexible enough to handle a renovation?
A major renovation can put a lot of strain on everyone in the home, so be aware of what life would look (and feel) while that work is happening.
- Will the renovation make the home a long-term solution?
You might not have thought it was a “forever” home, but the right reno could change your mind. Go through your must-haves list again – you might already be living in your dream home!
- How will each option impact your monthly payments?
The bottom line! How would your estimated new mortgage compare to the total cost of your current mortgage plus the renovation costs? Remember that those costs will change over time, so factor that in as well.
There’s no one answer for everyone on this because every situation is different. But if you break that big question down into smaller pieces, you’ll be in good shape to put the puzzle together.