The decision to move out of your home or remodel it is not always easy to take. If you decide to relocate, what happens to the work you’ve invested in the property or even more significantly, the relationships you’ve built for many years? Remodeling may allow you to keep friends and your yard, but what about cashing out on your equity and moving to a bigger space to meet the needs of a growing family? While making a decision to buy a new home or opt for renovation, here are some of the most vital factors to consider.
Location is one of the most important aspects to focus on in the relocate vs remodel question. If you love your current neighborhood and you don’t want to part with your neighbors and the great amenities or you are into homesteading, renovation may be your best option. You may also choose to renovate if you have children that are starting school. Moving out to a new neighborhood may disrupt their schooling and make them emotionally unstable due to a loss of friends and the need to adapt to a new environment.
On the other hand, you may be tired of your old neighborhood. Maybe the noise and air pollution have increased because of the recent movement of new companies to the area. You may also be living close to the city center and you need to move out to a quieter suburban area. When you need a fresh start and a new location will be beneficial to the whole family, it is better to relocate to a new home.
Whether you choose to move or renovate your house, you will need a substantial amount of money and financing. Buying a new house will most likely involve getting a home loan. This requires you to give your lender a variety of documents including:
* Credit history
* Tax returns
* Proof of income or pay slips
* Bank account statements
* Renting history
* Personal photo ID
After you provide your lender with these and other documents, the process of pre-approval for your mortgage will start. The amount of money your lender can offer you will affect the type of home you can buy. Mortgage lenders will look at your credit score, monthly disposable income and the amount of savings you have for your down payment before approving a particular amount for you. Additionally, there are numerous helpful resources to understand home loans available for free online, detailing the various options that exist.
Basically, if you have a substantial amount of debt on your current home, you have a poor credit score or history, and you have other major expenses, like paying fees for children in private schools, you should avoid applying for a mortgage. If you have a good amount of equity built up, however, you can apply for a home equity loan to take care of your remodeling project.
Space requirements vary for different homeowners. While couples with growing children will desire extra rooms, older couples with adult children usually want to move to a smaller home with less space. If you are in the second category, selling your larger property with unused space and buying a small one in a new neighborhood may be a wise decision.
However, if your family is in dire need of additional space, adding more rooms to your home could be the most viable alternative. You need to consult your local council to know if you will be allowed to add the extra room that you need. Remember that adding more rooms could eat into your yard space and you will still need to keep a certain amount of space to meet setback requirements.
Buying a new home usually costs more than most home renovation projects. But a new home purchase will seldom require nearly as much personal effort, planning, and attention as a renovation would. You can delegate almost all parts of the home buying process and still get a satisfactory result.
Renovation, on the other hand, is quite stressful. It also brings on a lot of inconvenience to the whole family. Your roof will be taken off, walls and flooring will be broken, dust and particles of mortar will fly into the air. In some cases, the whole family will have to use a tiny fraction of the home for several weeks until the renovation is completed (or alternatively move out during the process). So even if you consider renovation as your best option, be adequately prepared before you start and take steps to reduce any stress or tension the project may cause you and other family members.