Home Buying Vs Home Renovations: Pros and Cons

As families evolve through the years, their needs in a home also change. A studio unit that was once cozy for a couple in their first years of marriage, for example, may not have enough room later on should have kids. If the couple’s now huge family move into a two-storey townhouse, their home may no longer be convenient should should the kids grow up and move out. Mobility also in a two-storey townhouse will be difficult for the couple, once they have reached their twilight years.

Is any of the life stages familiar to you at the moment? Here’s a helpful guide for you to refer if you can’t decide on buying or renovating:

Moving to a new home

Pros

• It’s a new beginning. Moving to a new home is exciting. It symbolizes a new chapter in your life and gives you an opportunity to meet new friends, enjoy a new neighborhood, and start living the life you want.
• You’ll strengthen family bonds. You and the rest of your family will have to rely on each other’s support to get around your new community. Seize this opportunity to explore together and start new family traditions.
• You can expect a cash windfall. The value of your current property might have increased over the years; you could sell it at a profit.
• There are less maintenance headaches. Moving to a brand new home means not having to deal with problems associated with older structures such as fixtures that are out of order.

Cons

• The transaction costs are high. Selling a home and buying a new one involves the payment of agent commissions – one on the sale and one on the purchase. This and appraisal expenses, title search fees, title insurance, and other legal fees will can eat up any profit you’ve gained.
• Admit it: Moving can be stressful. Sorting out the things you need and don’t need and moving these to a new location is a lot of work. It’s not something all of us look forward to, especially when we’ve accumulated years’ worth of possessions.

Renovating the existing one

Pros

• strong> It’s cheaper. Assuming that factors such as lot size and amenities are the same, the cost of renovating an old home is generally lower than the price of buying a new one.
• You’ll remain in your comfort zone. Choosing to stay means your kids won’t have to transfer schools and leave friends they’ve grown to love and trust. You’ll be eating in the same restaurants, shopping at the same stores, and you’ll be around the same neighbors. You won’t have to disrupt current routines.
• You know your home’s history. There’s something reassuring about knowing the ins and outs of your home. You know when the roof needs to be repaired, you know what your average water and electricity consumption is, you know the adjustments that were done over the years.
• You can add personal touches to make it uniquely yours. Only a few people are lucky enough to find everything they want in a house in a single property. Renovating allows you to change features (maybe you’d like hardwood floors instead of wall-to-wall carpeting?) and add amenities (commission a landscaped garden, perhaps?) to transform it into the home you’ve always dreamed of.

Cons

• It’s not practical if you’re considering a major overhaul. Renovating rarely makes sense if you want to make your home smaller than it is. It’s also not worth spending thousands of pesos renovating every single room when you could just move to a brand-new house with all the upgrades you’re looking for.

• It’s difficult to lock in a budget. Homeowners renovating their homes dread hearing this from their contractor:

  Kailangan pa pala natin magdagdag ng ganito…”

• Expenses are sometimes compared to a bottomless pit; one thing leads to another another and it’s easy to go beyond the budget. Moreover, remodeling may require a loan. If you haven’t lived in your home for a long time, it could be difficult to get the loan approved.
• Just like moving out, renovations aren’t fun either. Home renovation has its share of inconveniences, too. Are you ready to wake up to the intense smell of fresh paint, the constant pounding of the hammer, or the rumbling of a saw? Are you ready to see carpenters moving in and out of your house for months? Your home might look like a war zone for quite some time; consider that before jumping in.

Thinking of moving to a new home this year? Check out units here and here.