When you first moved in, your house was a perfect fit. Then, life happened. Things changed. Now, your home isn’t as suitable for your needs as it once was, and you’re left asking an important question: Should I build a new house or renovate my existing one?
Should I Build a New House or Renovate?
Has a growing family left you longing for more elbow room? Are you thinking about what you need to do to age in place? Have the needs of a home-based business, changes in your preferred style, or your devotion to a new hobby altered your priorities? Whatever your reason for pondering the possibilities of reshaping your living situation, both building and renovating have pros and cons. To decide which option is best for your needs, ask yourself a few questions . . .
How Strong Is My Attachment to My Home?
Are you reluctant to leave your existing home because you still love it and cherish the memories made within its walls? Is your neighborhood a place where you feel welcomed and safe? While it’s impossible to assign a number value to emotional attachment, those feelings should be a factor in your decision, according to the EcoVision Sustainable Living Center. If you love your home and can reshape it into a place that matches your renovation needs, renovating might be your best option. Similarly, if there are no empty lots in your neighborhood, and building would require you to leave a community that your love, renovation might be best. However, if renovations aren’t practical, and there’s an appealing lot just down the street, then building a new house could be the better path forward.
Which Is More Affordable?
Is renovation or building the more affordable way to achieve your housing goals? Again, there’s no clear, one-size-fits-all answer. Some experts say that remodeling is cheaper; others insist that building comes with a lower cost in the long run. With the wide range of possibilities in terms of the scope and scale of either a renovation project or a new construction project, it’s tough to get a clear answer, and that’s before you entertain topics like energy-efficiency, warranties, character, and quality. However, The Spruce does point to one definitive difference: Renovations can be done in phases, as you’re able to afford them. In contrast, building a new home means starting from scratch and figuring out how to finance everything immediately.
Of course, before you decide which option is more affordable, you may want to talk to a loan expert. Discovering the possibilities offered by refinancing, renovation loans, and mortgage products is crucial to making informed decisions about what you can afford.
How Will Renovating Impact My Property’s Value?
Consider how renovations will impact your home’s value if you’re trying to answer the question, “Should I buy a new house or renovate?” Smart renovations can improve your property’s value and help you build equity. As U.S. News & World Reports notes, selling to start fresh when you don’t have much equity can mean walking away empty-handed, but making strategic renovations can help you build equity and give your financial situation a boost. However, it’s important to avoid over-renovating. If your desired renovations will far exceed the home’s resale value or create a situation where your home has outpaced the rest of the neighborhood, building might make more sense.
Will Zoning and Legal Limitations Pose a Problem?
Owning a home offers a great deal of freedom, but it doesn’t allow you to do whatever you want. You still have to abide by zoning laws and building codes. As The Nest indicates, these legal limitations may pose a problem if you hope to remodel, especially if you’re eager to expand beyond your home’s current footprint or are hoping to offset some of your costs by incorporating a rental property. Before you commit to renovations, check that you’ll be allowed to proceed with your plans. If not, building a new house is probably the better option.
Should I build a new house or renovate? Ultimately, the decision is yours. But whether you’re buying a new home, building your dream home, trying your hand at buying and renovating a fixer-upper, or looking for the best way to finance renovations at your existing home, turn to PrimeLending of Kansas City. Contact us today to discover how we can help you achieve your housing goals.