Should You Renovate or Move? That is the Big Question.
Should You Renovate or Should You Move?
Many buyers' expectations for a home have shifted in the last 18 months. The AIA Home Design Trends Survey results for Q3 2021 were recently announced by the American Institute of Architects. The results of the poll are as follows:
More outside living space is desired by 70% of respondents.
A home office is desired by 69 percent of respondents (48 percent wanted multiple offices)
A multi-purpose room/flexible area is desired by 46% of respondents.
An au pair/in-law suite is desired by 42% of respondents.
A fitness center/yoga studio is desired by 39% of respondents.
You have two alternatives if you're a homeowner who wishes to add any of the above: renovate your current situation
If you're a homeowner looking to add any of the above, you have two choices: remodel your present home or purchase a property that already contains the areas you want. Factors such as these may influence your decision:
A potential desire to move
The cost difference between a refurbishment and a purchase
Finding an existing home or building a new home with precisely what you want (rather than attempting to rearrange the plan of your present home) In either scenario, you'll need capital: money for the renovation or a down payment on a new home. The good news is that you probably already have the money you need in the form of equity in your present house.
As a homeowner, you may have access to the funds you need to buy the perfect home or modify your present one. However, delaying your choice might raise the expense of accessing that equity.
You'll need to refinance (or take out an equity loan) to access the equity if you decide to renovate. You'll still need to borrow the difference between the down payment and the cost of your new property if you opt to relocate instead and utilize your equity as a down payment.
Over the next year, mortgage rates are expected to rise. If you wait to leverage your equity, you'll almost certainly end up paying more. According to the Federal Housing Finance Agency's most recent statistics,
First, figure out how to calculate home equity
If you're ready to either renovate your present home or discover an existing or newly constructed property that meets all of your needs, the first step is to figure out how much equity you have in your current residence. You'll need two items to accomplish this: