There are many life moments that can trigger the ultimate question: to move or renovate? Milestones such as the arrival of a baby, teens leaving for college; continuous reasons to evaluate the space in your home will present themselves.
Choice 1: Stay and Renovate
Naturally, the first thing to do is to evaluate the layout of your home and decide how this works (or doesn’t) with the present milestone in your life. Things to keep in mind:
- Restrictions on the size of the community and evaluate your block – if you renovated, would your house be up to par or just slightly past the value of most homes surrounding you?
- Yes, there are the costs associated with renovations, but there are far less fees and commissions to pay out.
- Would you be creating a purple elephant? You know, the house that clearly stands out on a block of otherwise regular real estate.
The latter is never a good option; it will leave you in the worst-case scenario of renovating and ending up with a home that’s worth less than what you put into it. However, some benefits to staying are:
- Low mortgage interest rates that you may have already secured and a low balance to repay.
- Access to urban infrastructures such as schools and public transportation.
- Emotional attachment to your home.
- Established friends, clubs, etc.
Choice 2: Start Over and Move
This is not to suggest that moving is the best option for you, as there are costs associated with no return; such as real estate commissions, moving costs, and other unexpected bills. Land appreciates more than your actual house, meaning staying at your current address and improving the home, could present you an opportunity for substantial tax savings.
I’ve broken down a few key benefits when deciding to move:
- Option to buy a place with more space.
- Not having to deal with contractors in your home.
- The ability to choose a new home based on your current tastes.
Have you faced a similar decision? What did you decide? Share your thoughts in the comments below.
This post was written by Andrew Jabbour from Greater Toronto Contractors. Andrew sincerely loves to help people. He strives for any challenges that may come his way and it brings him great joy knowing that our line of business changes people’s lives daily.