This is the million dollar question. Hopefully it won’t cost a million to renovate your house!!
Are you outgrowing your space and wondering if you should renovate or a buy a new house? I'll walk you through 6 factors to consider if you renovate your house and 6 factors if you buy a new house.
Let’s take a look at factors to consider for each scenario. First renovate your house:
Timeline: Allow for adequate time for getting designs, permits and renovations completed. This could take up anywhere from a year to a year and a half depending on the extent of the renovations. I am referring to gutting the house, doing an addition, adding a third floor, underpinning the basement….major work and not cosmetic such as redoing a few bathrooms
Budget: Whatever you budget for add another 25-30%. There are always surprises, additional issues to address and changing cost of labour and material
Contractor: I highly, let me say that again, highly recommend you pick the contractor early in the process. You might be asking how if you don’t have designs completed for the contractor to quote. Ask for referrals from friends and family who have done extensive renovations, interview the contractor, search them online and ask for past clients references. It’s important to have the contractor provide input to the design process since they are responsible for doing the renovations. Anything can be designed on paper, however if it’s difficult to build, it will add significant costs
Accommodations: This is something to plan and budget for. If your renovations will take 8-12 months, account for renting another home while renovating your house
Location: You get to stay in the area you have roots in
Long Term Home: The reward of this process is you get to design and build your long term home. The finishes, the features will make this a long term home for your family. A place to entertain, host and live.
Ok let’s look at buying a new house:
Buy & sell: depending on market conditions you will either have to buy first then sell or vice versa. Be prepared to declutter your current home and get it ready for sale
Moving: Decluttering, purging, packing, moving and unpacking with young children can be a challenge. Speaking from personal experience, I find building a house from scratch is a lot easier than moving with young kids but it had to be done
Features & Finishes: It might not be the perfect house in terms of wall colours or choice of tiles, however minor cosmetic changes can be done before you move in or down the line
Finances: Some of the costs to consider are land transfer taxes, legal fees, selling fees, moving fees and any mortgage penalty fees
Neighbourhood: You might buy a house in the desired school catchment area where you want your kids to go to school to
In summary, if you live in a condo which is your first home, buying a house is pretty much your only option since you are outgrowing the space. If you live in a house then either option could work for you. It really depends on what your preference is to love it or sell it.
If you have outgrown your space and are looking to move a bigger family home reach out. I have helped many clients and have personally moved with young kids.