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Should you move or remodel your current home

This is the time of year that everyone starts thinking about all the ways their current house doesn’t fit their needs.  Should you start looking for your next dream home now?  Here are a few questions you should consider before deciding the answer.
First, is there an alternative to moving?
Yes, one option could be remodeling or adding onto your current home to make the changes that you want.  If you like most of what your current house offers but you just want a master bedroom suite or a large family room, you might not have to move.
How do you decide if moving is more cost effective than remodeling?
First, look at how much it would really cost to buy a house with everything you want to change in your current home.  You also have to factor in the cost of selling and buying a home.  Next, get estimates from contractors for all the projects you would like to complete in your current house.  This should give you a great idea of what is most cost effective.
Remodeling might not always be a good answer though even if the numbers work out right?
You also have to determine if your remodeling will make your house out of place in your neighborhood.  For example, if you live in a neighborhood with all 3 bedroom homes and you complete an addition that makes your home a 6 bedroom home, your house might be out of place in the neighborhood.  This could negatively impact the value of your house when you do decide to sell it.
Is there anything else to consider when making this decision?
One consideration is determining if you like your neighborhood and all the other aspects of where you live.  Perhaps you want to get closer to work, or move to a better school district or some other issue that can’t be solved by remodeling.  These are all good reasons to buy instead of remodeling.
If you decide to remodel, what are ways to pay for it?
One the best options is to use a home equity loan to pay for remodeling expenses because you can get lower rates and a longer term to repay the loan, additionally, the interest might even be tax deductible. The bottom line is that the payment will be more budget friendly than other options one might consider.

Posted: 2/23/2015 with 0 comments

Categories: Homeownership, Money Matters

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