The question “Should I add to my existing home or buy a replacement home”. comes up often in conversations with home owners. The answer is different for each family and their current situation. With property values sky rocketing, many owners have decided it’s more cost-effective to add the square footage needed than to spend the money on a down payment and higher mortgage.Often, you can decide between upgrading your home or buying a new house simply by considering what you want to change. For example, putting in a new floor in the living room is quite a small project, but adding a new wing to the house would take considerable cash. If you need more space, it might make more sense to buy rather than to take out a home improvement loan, but small changes shouldn’t warrant a move.
How do you feel about the area in which you live?
You can add a second story or retile the kitchen or build an outdoor shed, but you can’t change the community surrounding your home. Whether you should upgrade your home or buy a new house might depend on your feelings about the surrounding area. If crime is up and the school systems are poor, you might want to move and start over in a better community. If you’re comfortable and happy, however, it might pay to stay.
Will zoning ordinances prevent you from building
Extensive renovations to an existing home can be more trouble than they’re worth. You’ll have to get approval from your homeowners’ association, and you’ll have to acquire building permits for any new structures, as well as plumbing and electrical service. You can upgrade your home on the inside without having to worry about this, but if you’re worried about going through the proper channels to build, you might want to just buy a new house.
What does the housing market look like?
Unfortunately, it isn’t always possible to sell a house right away. If you need to sell your current home in order to buy a new house, it might be better to simply upgrade and stay where you are. The real estate market can change overnight, however, so you could be ready to move in just a couple of months. It all depends on your financial situation and how long you’re willing to wait for the house of your dreams.
Do you have the cash to upgrade?
When you buy a new house, you use the proceeds from the sale of your current home to make the down payment, but this isn’t the case when you decide to upgrade. If you don’t have the cash necessary on hand, you can take out a home improvement loan or line of credit, which will act as a second mortgage on your house. This can be financially draining if you’re concerned about job security or other expenses, so make sure to consider your budget before making a decision. Please visit my website http://www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding neighborhoods.