Let’s say you’ve been living in your home for many years now. You love your house but is no longer enough to cater to your wants or needs. Do you plan on a home improvement project or would it be better to buy a replacement home instead?
Since it is indeed a tough decision to make, we’ve gathered the pros and cons of buying a new purchase versus a home renovation.
Advantages of Home Improvements
- The cost of home remodelling is usually cheaper than a home purchase.
- You can apply for a second mortgage from a Mortgage Lender San Antonio to finance your project.
- You can choose which rooms you wish to renovate to remodel a single room or all of the rooms
- You get to retain the features you love the best, and to only alter the structures you want to improve or add amenities within your budget.
- When you choose to stay, you get to have the same neighbours whom you’ve come to love and develop a friendship with.
- By choosing to stay and to renovate, you know almost everything around the house and which ones are scheduled for repair and maintenance and when.
Disadvantages of Home Improvements
- Most home improvements are impractical since not all projects can increase your home value unless you choose projects with high ROIs.
- Renovating your home is difficult to finance. You’ll usually need to acquire a loan meaning you’ll have to apply and get qualified before you can get the funds. Most will have shorter terms and higher interest rate. If you use a home equity loan, the requirements are stricter, and you’ll need to have enough equity to qualify.
- If you choose to renovate and still stay at your home during the process, the hassles and inconveniences it brings can be overwhelming.
Advantages of Buying a Replacement Home
- You get to have a fresh start on a new home, new neighbourhood, new location with new neighbours.
- Even though you might be wary at first because of the move, you get to focus on your family while familiarizing yourself with the ins and outs of the neighbourhood.
- You can apply for a mortgage to finance your home. Depending on your financial status, your credit score and reports, etc., a Mortgage Lender San Antonio can offer you with a mortgage program that will best suit your needs.
- There are favourable income-tax consequences for homeowners who choose to sell their home and buy a new one. Tax credits are also available depending on the property you decide to buy.
Disadvantages of Buying a Replacement Home
- You’ll need to deal with high transaction costs involved when selling your current home and buying a replacement.
- Moving is time-consuming, not that practical, adds to your expenses and not to mention a tiring task.
- You may end up buying a house that doesn’t have all the features you like. For example, one bedroom being too small, or the kitchen having an outdated design.
- When financing your home purchase, you need to make sure to pay your monthly mortgage fees or face the consequences.