Welcome back! In the previous post, we talked about how there are many advantages and disadvantages to moving. Remodeling or renovating your home is another option when space gets limited and you need new living arrangements. Just as with moving, this choice has its own pros and cons.
Advantages of Remodeling:
- Remodeling allows for ultimate customization. When you choose to remodel, you can plan for everything to be rebuilt or adjusted to your exact needs and tastes. If you buy a home that is already built, you’ll have to make your life fit into that home.
- You may be able to use home equity to pay for the renovation. If your home has gained enough equity, you may be eligible to apply for a home equity loan that would allow you to use your home as collateral to pay for the renovation. Borrowing against your home equity may be more efficient and less expensive than getting a new home mortgage
- Stay in the neighborhood you love. When you remodel, you’ll be able to remain in your area. This is great for people who love their local schools and the neighborhood or the nearby attractions, or people who just really don’t enjoy the moving process.
- Avoid the additional costs of moving and selling your home. Your remodel can be expensive. However, after realtor commissions, moving costs, and the money you’d spend perfecting your new home, moving tends to be even more expensive than remodeling.
Disadvantages of Remodeling:
- You’ll need to plan for surprises. When remodeling an area of your home that hasn’t been touched in some time, unexpected expenses could arise. This is especially true if you’re taking on a larger-scale home project. If this is your chosen solution, be sure to budget well enough to have a cushion for the unknown.
- It can be stressful to undertake. There are a lot of factors to consider when getting your home remodeled. You’ll be dealing with your personal budget, contracts and general contractors, product and materials, and potential delays and unexpected expenses. If your renovation is especially difficult or large and invasive, you may be living in a construction zone for a while. Your family may even have to temporarily live with family or at a hotel.
- Remodeling isn’t ideal for complete overhauls. If your home needs a major makeover, then a remodel probably isn’t the best choice for you. It may not be worth the thousands of dollars it would cost to update all of the rooms in your home when you could buy a new house that has everything you need and want. Renovations usually work best when you only need to adjust a few rooms in your current home.
How do you choose what’s best for you?
First, decide what your home goals are within the next 10 years. Is this a permanent solution for your family or do you plan to move soon? Are your children just beginning to grow up or are they almost out of the house? Most importantly, what can you afford? Ask yourself these questions to decide what option is best for your situation.