Should I Renovate or Move, Making The Right Choice
Each year we undertake a variety of projects, these include simple room makeovers in a den or living room; kitchen and bathroom renovations; the creation of outdoor living space whether it be a deck, patio or sunrooms, garages; additions and on through to complete home restorations; and a few basement renovations and conversion to secondary suites thrown in for good measure.
As contractors a question we are often asked whether it be a simple deck, an apartment renovation or a complete home makeover is, “Do you think we should renovate or should we just move to a larger house?”
Every situation is a little different
Every situation is a little different but if the following apply this should give you a few reasons to seriously consider a renovation:
We love the neighbourhood
The location is perfect
The neighbours are awesome
Kids are settled in school
Family and friends live close by
It is convenient for stores and work
There are also a few financial reasons that make a renovation the sensible option:
The actual cost of selling the existing home
Real estate fees approx. 3 – 4% of selling price for an average $1.8m home approx. $72,000.00
Lawyer or notary $450 – $600
Discharge or early repayment of mortgage
Repairs to the existing home
Also, the cost of purchasing the new home includes:
The additional mortgage payment
Appraisal fees $250 – $600
Title insurance $1500 – $2000
Lawyer or Notary Fees $900 – $1400
Survey Certificate $2000 – $3000
Home inspector $500 – $900 for an average home
GST @ 5% if it is a new home
Property transfer tax of between 1% & 5% so for a $1.8m home approx. $34,000.00
Moving trucks and supplies
The cost of making the home yours, repainting or other improvements
In addition to the financial considerations of renovating your current home there are other intangible benefits, the kids get to stay in their current school, you cut out the stress and work of moving, and you don’t have to work the extra hours to pay for the move so this makes for less stress and more time to enjoy your improvements be it a new outdoor deck or a relaxing soak in your new Jacuzzi.
Many improvements especially if you add a new feature like a garage, deck or additional living space may actually add additional value to your home and could be considered an investment for the future.
So basically, apart from the financial savings if you are happy with your current home, you like the neighbourhood and it is convenient for your needs then maybe now is the time to consider adding that new deck, building a new master bedroom with a luxury en-suite bathroom or simply renovating the basement for a kids entertainment room that gives you some space and quiet time from the kids.