Kiki Interiors - Decor and Staging

Friday, May 24, 2013

Renovate? Relocate? What you need to know...

It's a tough decision with many factors to consider such as cost, future, equity, opportunity, expansion, etc...

Take the Jones' Family for instance.  They have a growing family with a young child and a second on the way.  They live in a three bedroom single family home . Julie and Mike are both self-employed and work from separate home offices.

Before their daughter's arrival, they renovated their kitchen and installed new windows throughout. Julie also converted her office into a nursery. When she returned to work, she set up shop in a corner of the living room, but it was too cramped. She needed an office. Mike and Julie also wanted a family room that would double as a playroom for their growing family. They wondered if they should finish the basement with a bathroom, small office and family room, or move to a bigger house.

“If we renovate now, we want to make the money back if we sell the house in five years,” says Julie, who thinks they'll eventually move to be closer to a good school.

Here's a few things to consider :

- Your debt level, can you afford to upgrade? a bigger mortgage? a renovation?  If the answer is , no.  Stay put and wait it out.  Your living quarters should be a part of your long term goal, a little short term pain can be OK but not if it is going to cripple you financially.

- How long do you plan to stay where you are currently?  If you aren't planning on being in your current home more than  years keep updates very minimal especially if you are hoping to turn a big profit once you sell.  Upgrades like stone counter tops, stainless steel appliances and expensive designer tiles will help you sell faster but no necessarily make you more money.  A basement reno

- If you are going to renovate and at some point sell where should you spend your money? Kitchens, Bathrooms, Windows, Flooring and paint are where you will make the most money.  A basement reno might help the home sell faster but you won't see a huge return in terms of profit once you've sold it.  But take a look at the comparibles from your agent to see what homes with the same features as yours are selling for.

Before you make your decision be sure to weigh your options and get your numbers.  so all the reno costs involved (such as blueprints, materials, and always leave about 10 to 15% extra for unforseen changes or issues).  When selling keep in mind the sellers pay the commission to the buyer's agent.  Another very important factor is stress level, with a new baby on the way and already one young child plus working from home - is it easier to move and have a few weeks of chaos, or months of messiness? 

So make the right renovate or relocate decision for you.....

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