The decision of whether to buy a new home or renovate the existing one is never as simple as it appears on the surface. It often involves so many considerations that most homeowners feel confused between the two choices. Since both the options have their unique sets of pros and cons, it makes sense to carefully consider all the factors to make the decision justified.
In general, renovation can always be a good option when a homeowner is happy with the current location and neighbourhood but just wants to make slight modifications to the house to meet their unique style and preferences. However, renovations can be challenging with plenty of unexpected issues and hassles along the way, sometimes making it drag on for months, literally.
On the other hand, buying a new home is not only less challenging and stressful, but also feels like the right option when the goal is to move to a new location and get access to modern amenities and warranties. A new home however costs more than renovation but it also involves the hassles of selling the existing one.
Ultimately, whether to remodel or relocate is a decision that will depend on individual lifestyle, needs, budget and future plans. For homeowners, the right strategy is to first analyze the decision on all factors and then consult professionals before making a decision.
In this blog, we will explore the various pros and cons with renovating vs buying a new home.
Let’s get started then…
Key questions to consider before making the decision
Whether to move out to a new home or plan a renovation is a decision that needs a careful consideration of various factors. Before committing to either, a homeowner should first answer all the questions to themselves as it can give clarity.
Here are some of those questions –
- Is the current location too good to leave? In that case, renovation is the best option as it will allow the owner to enjoy all the benefits of the neighbourhood.
- Has the budget been a concern? When the budget is an issue, buying a new property for sale may not be feasible and renovating can be the ideal decision.
- How about renovating without changing the structural elements? This option can be a good fit for homeowners who want to remodel but have a tight budget.
- Will a remodel add to the home’s value? Strategic remodels and changes can increase a home’s value in the market, and can also ensure a higher ROI in the future.
- Does the current home align with the future plan? Relocation can be a good option in cases where the existing home does not align with the owner’s long-term vision.
The pros and cons of renovating a home
- Renovation can help personalize the home to fit the unique styles and preferences of homeowners. Without spending big on a new house, owners can upgrade the existing house at a little cost and make it a more enjoyable place to live.
- Remodelling an existing home is not only less expensive than buying a new one, but it can also be aligned to one’s budget. Renovation can be carried out on a room-to-room basis to economize the expenditure.
- Renovating can improve the functionality and the energy efficiency level of the home, making it more comfortable to live and lowering the utility bills.
- Renovations can be costly if significant changes are done to the home. Costs can go up considerably if proper planning is not there.
- When a renovation project is undertaken, it makes the home uninhabitable for a long period of time. This can disrupt the normal routine of life.
- Doing extensive renovation may involve seeking permits from local authority which can add to the costs and sometimes may also take a lot of time.
- Project delays are common with home remodelling as unexpected issues often pop up with the home, which often adds to the cost.
The pros and cons of buying a new home
- Buying a new house gives the freedom to choose the features, layout and finishes that meet the style and needs of homeowners.
- New homes for sale come with less maintenance worries since everything will be new and under warranty with no immediate need of upgrade. They will come with a warranty that covers any construction issues or defects arising in the early years of ownership.
- Investing in a new home gives the buyers the opportunity to access modern amenities such as high-efficiency appliances, advanced home tech apparatus and updated building codes.
- Buying a new home is always more expensive than remodeling an existing one and this cost barrier is the major reason why potential buyers sometimes delay buying and go with the renovation instead.
- While a new home heralds a new beginning, it may also come with unknown community dynamics and buyers may not be sure who their neighbours will be, how the area will grow etc.
- Moving to a new home means a homeowner first needs to sell the existing home, go through the entire process, hire real estate professionals and pay for their service. All this can be a bit overwhelming to some people and they may rather prefer simple upgrades to buying a new house.
Deciding whether to relocate or renovate is always a tough decision with long-term consequences. To ensure the best result, it is important to consult with a real estate agent and a home contractor, carefully calculate the financial implications of each option, and then make the decision.