To Remodel or Not to Remodel? Home Improvement vs. Buying New
From Lynn on December 31st, 2009 in Remodeling News
In today’s economy, is it better to buy a new house, or stay put and make the best of what you’ve got?
There’s lots of talk about the subject, but the fact is, people just aren’t confident that they’ll make any money if they try to sell their current homes now – they’re not worth what they thought they’d be in the current market. So, logic goes, why take a risk on purchasing another, especially when you factor in all the associated costs of the turnover?
The drastic decline in new-construction homes is evidence of the stick-with-the-devil-you-know trend, as does the marked surge in remodeling jobs. Whether or not the upgrades pay off will remain to be seen, but at least homeowners can appreciate an increase in home satisfaction. Accepting the idea that your house isn’t the moneymaker you hoped it would be is a lot easier to contemplate in a spacious granite and cherry wood kitchen with stainless steel appliances and new fixtures than in a broke-down linoleum-clad ‘70s version.
One obvious question to ask yourself when considering remodeling versus buying is, what would it cost to buy a home with the features you wish your current home had? After some research and soul-searching, if you can’t afford the type of house you want, maybe it’s best to just love the one you’re with.
Photo Credit: Mejia Bros & Fidelity
April 1st, 2010 at 7:31 am
There are quite a few things that factor into the decision of remodeling vs. buying new. For starters, in this economy it’s easier to get a home equity loan–and rates can be even lower than home mortgage rates. Other considerations are realtor fees (up to 6% of the selling price) and moving fees, if you sell. Not to mention the stressful juggle of trying to sell your house while attempting to land a new one.
At the end of the day, if you decide to stay put, make sure the improvements you make offer the most big bang for your buck. For example, re-facing your house with fiber-cement siding delivers the highest ROI of ANY home improvement project, according to the 2009 Remodeling Magazine Cost vs. Value Report. Plus, fiber-cement is low-maintenance and resistant to fire or insect destruction, etc. Not to mention you will feel like you’re in a brand new home—and isn’t that the whole point?
-James Hardie Online Outreach