Industry Insight – Buy New or Renovate?
There are many factors that come into play when deciding whether to renovate your current home, or sell it and buy a new one. One of the most overlooked is whether you’ll be able to get all of your money back when you go to sell the property. Even if you believe you’ll stay in this home for many years, remember life is unpredictable and the last thing you want to do is get stuck with a property you can’t sell.
In order to ensure the saleability of your property, it pays to start from the end and work backwards. Consider the following questions:
- Once the renovation is complete, how much will the home sell for?
- Who is going to buy this home?
- What type of renovations do people who live in the area want?
By completing this exercise, you can ensure the money you spend on your home renovation is a good investment and you won’t get stuck with a property you can’t sell if life changes. If you find you’ll lose an unacceptable amount of money on the renovation, consider reducing the budget and/or scope of the renovation. Alternatively, go see what you can buy if you don’t spend the money on the renovation and instead purchase a new home that doesn’t require any renovations.
Selling a home and buying a new one does come with costs that you won’t recover. Sitting down with a Realtor® and going over all the financial aspects of moving will ensure you get the complete picture. Ultimately, the decision to renovate or sell isn’t purely a financial one, but completing these steps will prevent any nasty surprises down the road.
Dave Rhydderch, Realtor ®
Ph: 403-990-1278 www.realtordave.ca