Do You Need a New House, or Just Renovations?

Do You Need a New House, or Just Renovations? - Source Mortgage Centre - Mortgage Professionals - Featured Image
Do You Need a New House, or Just Renovations?

Your home just isn’t doing it for you anymore. Maybe the kitchen is too small, there aren’t enough bedrooms for your growing family, or you just can’t stand the lack of windows in the living room. It’s perfectly normal for homeowners to feel as if they’ve outgrown their home. After all, the typical amortization period for Canadian homeowners is 25 years, that’s a long time to maintain your needs. Now you face the tough decision: to stay and renovate, or to move onto greener pastures and find a turnkey home. In this week’s article we are going to discuss the pros and cons of both options, plus other factors to consider when making this decision.


Sell Your Current House and Move to Your Dream Home

Pros

  • You get the home you want. No construction zone, no dealing with contractors, no cleaning up the mess. But most importantly – you aren’t limited by the constrictions of your current home.

  • You get to choose a new location. Are your kids all grown up now? Do you really need to live right next to their elementary school anymore? If you’re pining for a change of scenery along with a change in home, moving may be the perfect option for you.

Cons 

  • Moving is expensive. Aside from your down payment and monthly mortgage payments, you will need to consider all of the moving costs you went through the first time around.

  • Certain renovations will need to be done anyway, or else your asking price will take a hit. These include fixing a cracked foundation, a leaking roof, or bringing your electrical system up to code.


Stay in Your Current House and Transform it into Your Dream Home

Pros 

  • You can design your home just for you. Unless you are planning on building, a new house won’t be tailored in quite the same way. Working with a contractor gives you the opportunity to make very specific choices regarding your renovations.

  • You could get your home to pay for the remodelling! Many homeowners can qualify for a home equity loan or HELOC. This type of credit can be put right back into your home, increasing its value and your quality of life simultaneously.

Cons

  • There could be surprises along the way. Surprises in the renovation world usually equate to extra costs. This could be anything from mold in the walls to rewiring.

  • Having your home transformed into a construction site can be stressful. Consider how you would handle contractors and workers filtering in and out of your home. For some people, all the hustle and bustle in their space can take a toll.


Weigh Your Options

Still undecided? Take the time to check the market for your dream home. Search the listings and see what is available out there in your preferred neighbourhood. Consider the cost and factor in the expenses involved in moving as mentioned above. At the same time, write a list of the must-haves you want changed in your current home. Reach out to contractors and get quotes for the work you want done. Always add 10-20% to their estimate in order to account for anything unexpected popping up during the process. See if that number is something you can work with. By fully researching both of your options, you can get a clearer picture of what to expect regardless of what you decide on.


At Source Mortgage, we can help homeowners in Central Alberta weigh out their financial options. Contact us today for a consultation so we can help you achieve your dream home, whatever that looks like!



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Heartwarming Stories

Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013

Chad and Jenelle Richards
Added January 23rd 2013

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