Buying vs. Renovating

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By Anastasia and Michael Tsouroupakis

This morning while we going through our routine of getting everything and everyone ready for the day, I watched a report on one of the morning news programs about the growing trend of people choosing to renovate their homes rather than sell.  This was no news to us, we have noticed this trend in the last few years, since we are a city storage facility a lot of our customers are using our facility to store their belongings during their renovations.  We hear from our customers that it is the most affordable way to stay in the city.    Are you on the fence about selling or renovating?   We put together some of the advantages and disadvantages we think can help you pick a side of the fence—so to speak.

Selling Advantages:

  • A chance for a NEW BEGINNING: Selling your home will offer you the opportunity to start fresh, new home, new community, and new schools (for those with kids).  If you feel this way you have clearly outgrown your present home.
  • Financial Advantage: Selling your home will leave you with a profit, in addition to the fact that securing finance on a new home will be easier for you than a first time buyer.
  • Purge: If you are choosing to downsize this will force you to rid yourself of unnecessary clutter simply by virtue of the fact it will not fit in your new home. If you are moving to a larger home, this is also the time to decide on those thing you want to accompany you to your new home.

Selling Disadvantages:

  • High Cost of Buying: In the GTA the cost of homes is absurdly high.  In fact, if you live in the GTA it is estimated that up to 40% of your income is spent on your mortgage.  If you do realize a profit from the sale of your home , the high cost of buying coupled with any renovations the home may need (and believe me it will), will put you way over your budget.
  • Stress of Moving: Packing up and moving your home is the second biggest stressor next to the death of a loved one.

Renovating Advantages:

  • Costs much less: Meet with your financial consultant and find out if you can tap into the equity of your home for the reno, rather than going through the expense of lawyers, realtors, moving, and then reno’s in your new home.
  • Have It Your Way: This is the opportunity to customize your home to your needs, and those of your family.
  • Most updating and renovations add re-sale value in your home.

Renovating Disadvantages:

  • Not an option if you don’t like where you live, or your home in general.
  • Some renovations do not necessarily add value to your home. If you choose to spend $50 000.00 on a wine cellar in your basement, chances are you will not realize this investment when the time comes to sell your house.
  • Easy to go over budget.

http://www.carnforthselfstorage.ca

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