Friday, February 11, 2005

Buy or Extend?

Renovate or Buy Again?

Your family is growing and your current home is slowly starting to seem smaller and smaller. Or maybe you would like to have a room dedicated to a work out center, an office or a playroom for the children. This problem is a common situation. Ultimately the decision will need to be made whether you accept your current situation or whether to move out and buy a larger house or to extend your current home. Which decision is the best? There is no right answer but the decision you make should take into account the benefits and disadvantages of both options. The following is a brief outline of the pros ands cons of moving as well as extending.

Moving into a New Home

One of your options is to sell your current house and buy a bigger one. Moving into a new home can be an exciting event but it can also be stressful to the entire family. Moving often involves uprooting your family from their home, neighborhood and friends.

This option will certainly also add a lot of additional work in the form of listing and selling your current home as well as finding a new one. Your costs will include real estate agency fees, closing costs, as well as moving expenses. If the new home is larger it also may be more expensive and consequently come with a larger monthly payment. All of these issues should be considered before deciding whether or not to move into a new larger home.

Adding an Extension to your Current House

There are also many benefits to building on an extension to your current home. You are already established in your current neighborhood and staying means you will not disrupt other aspects of your family’s life.

Like moving to a new home, extending your home can have significant unforeseen costs as well. These costs include having the architectural plans designed, obtaining the necessary building permits as well as approval from your council and your homeowners association. Additional costs include furnishing the new extension with carpeting, appliances and furniture depending on the purpose of the extension. Extending your home will also mean that a portion of your house will be unusable during the period of construction. When the construction of your new extension is complete there may be clean up costs as well as landscaping expenses.

There is no right or wrong decision when it comes to whether to move into a bigger house or extend your current home. Consider your options and weight the pros and cons of either decision. It could also be helpful to discuss your options with your local real estate agent as well as a builder in the area.

Need a Renovation Loan?