You may love your current house, but there often comes a time when you would like to make some changes. Those changes may include adding rooms, opening walls, or just an overall fresh look. And while you may love parts of your home and its location, it does not always make sense to stay. These are common dilemmas that prompt many homeowners to make a crucial choice – buy a new home or renovate the current home to meet their needs.
There are no definite answers as to why buying a new house is better than renovating. There are cases when renovation is the right call and when buying a new home is the best option. However, buying a new house does often work out better than renovating due to the following reasons:
The Easiest Path
It is much less of a hassle to purchase a new home. You will know exactly what you are purchasing. There won’t be a worry about hidden issues such as termite damage, leaks and foundation problems. And if there are problems that arise, a new home comes with a warranty from the builder. A new home includes the peace-of-mind that major components like HVAC and kitchen appliances are all new and under warranty. It is also easier to finance a new home. Renovations are usually paid for through a second mortgage on the house. These need a higher credit score for approval and have shorter payoff terms. Getting a loan for a new house is usually easier.
Cost
While it may seem cheaper than a new purchase, you should consider a few things that come with renovation. To begin with, do you have the time and propensity to deal with contractors and manage renovation costs? The majority of home renovation projects bring unexpected complications, budget overruns, and stress. With a new house, you will know the exact cost and be able to move right in and continue on with life.
Value
A home renovation can and should add to a home’s value. While one can recoup some or even most costs during a home’s sale, there are still no guarantees. Buyers and markets operate in cycles. And if you are on the down end of a cycle when you go to sell, you may not see that beneficial return on your renovation. Home renovations are usually made to improve lifestyles and living conditions. With that said, emotion becomes a driving factor. And emotion is rarely accurate in a financial situation. You will likely reduce ownership costs and enjoy more improved and modern features of a new home without the difficult renovation experience.
You should now have a better perspective on why buying a new home is the better call. For convenience, practicality, and cost-efficiency, a new home is typically the right path. As one of the major purchases in life, it pays to weigh the pros and cons to decide what is best for you and your family. But in most cases, buying new makes the most sense over time. And who doesn’t love a new house!