Buying a House or Remodeling the Old One: Pros and Cons of Both Approaches
There’s at least one point in our lives where we have to make the crucial decision of buying a new house or remodeling the old one. There are pros and cons for each approach, depending on the situation. Moving into a new home means spending a much larger budget than a renovation. At the same time, a new home means a fresh start in a new neighborhood.
It’s vital to weigh the options carefully based on your desires and plans for the future. A good piece of advice is to write down both options’ advantages and disadvantages based on your preferences. Don’t try to be objective like a teacher or a team of essay writers because they aren’t the ones spending the next few years in that house – you are. So, be as subjective as possible and figure out your real preference. Draw a line in the middle on a piece of paper, and let’s get started!
Undecided folk should start asking themselves some fundamental questions and see if there are any deal-breakers. For instance:
Q: What’s your budget like?
A: A new house costs hundreds of thousands of dollars. A complete renovation’s around $50,000. If you’re changing the floor, be prepared to add 50% more to your renovation plan to cover it up.
Q: How does your home value change after renovations?
A. Check with a remodeling expert to see how much value does renovating add to your property
Q: Do you like the neighborhood you’re in?
A: Compare the districts and see where you would like to live.
Q: Are you planning on having a family?
A: A family with kids needs a larger space.
Q: What’s your mortgage plan after you move?
A: Evaluate how your mortgage is going to change if you move.
Q: How are your taxes going to look in the new location?
A: Get with a real estate agent and calculate the taxes, especially if moving into a new county.
Pros and Cons of Both Approaches
We’ve covered some basic questions about remodeling as opposed to buying a house, but maybe you’re still undecided. Let’s get into some details about each option.
Buying a house
Purchasing a new home can be quite an adventure. It can also be stressful and challenging, but the final satisfaction should be well worth it.
It doesn’t matter if you’re moving down the block or across state lines. A new house is a new beginning. You’ll pack your bags and change location; this means new neighbors, different stores, distinct landscapes, and so on.
You and your agent will have to decide on purchase options, insurances, and taxes. Nobody likes paperwork, but planning out a brand-new financing plan will give you a clear outlook for the future.
Selling your home can score you substantial money through capital gains exemptions. Married taxpayers can get $250,000 - $500,000 without added taxes, depending on state laws. Furthermore, there are also ecology-related credits given for houses that qualify. Check your tax filer to see if you’re eligible.
Buying a house is expensive. There are also extra fees along the way. Ensure you have the financial power and the willingness to go through a relatively long and complicated process.
Packing your bags isn’t as simple as it appears. You’ll have to sort things out, transport heavy items, sell the things you don’t need anymore, etc.
Remodeling a home
Renovation can mean more spaces, smarter adaptations, and an overall better house for your needs. To get the result you desire, you’ll have to be fully committed.
Renovating means you can change most of the things you didn’t like about your house. You’ll be involved in the decision-making process and add attractive features to your current home.
In theory, a comprehensive renovation costs less than the vast majority of new houses on the market. The budget can fluctuate a bit, but there are ways to save money.
Not worth it
Structural remodeling may not be worth the expense and risk if you live in an undesirable area. Take into consideration the social end environmental aspects of the district you’re in.
Similarly, a full esthetic overhaul isn’t the best way to go if you’re unsatisfied with how the house looks. The cost may exceed the property’s value, in which case, it’s better to buy new.
Not paying cash means you’ll have to sign up for a family loan. Also, the budget can increase due to unforeseen necessities. Home equity could also mean issues.
Most likely, remodeling means that you’ll have to find a temporary place to live while constructors are reshaping your house. Hotels can be quite expensive, and staying with friends or family can be inconvenient.
There isn’t a right or wrong answer between buying new or remodeling old. It depends on your situation and wishes for the future. Both options aren’t something you can idle your way through. Make sure you pay attention to the process and get involved.
Leon Collier is a British senior editor at college essay help. He’s also a writer at Australian assignment help. Leon has over five years of experience working for some of the best writing services and local newspapers. In his free time, he plays tabletop games, watches documentaries, and reads a history book. Follow him on Twitter @LeonCollier12