An article published last year mentioned that there was an increase in home improvement projects. This uptick is not surprising because people had a lot of time in their hands. The question is whether DIY can solve all your home repair issues.
The current economic situation makes it an excellent time to invest in real estate. But before you scour the World Wide Web for deals, you must weigh the pros and cons of relocating. You must also check if your house is worth renovating. If it is, would it be more practical for you to stay?
It is a lot to take it. But doing this little homework will save you a lifetime of regret. Let’s get down to business.
It’s all about timing.
It is tempting to settle for what is comfortable. You intimately know your neighborhood – its ins and outs. You understand how it works. But you must push your limits, especially your financial boundaries.
It is an excellent time to take risks. It is the best time to scour the World Wide Web for nearby institutions that offer great deals on mortgages or loans.
Banks are now offering low mortgage rates. You should take advantage of this because the interest rates are at an all-time low.
Before you jump to take that offer, you again need to do a little research. Time published an article stating that location can influence mortgage rates. Although it emphasized that your credit standing is the biggest factor in the interest, it would not hurt to make an extra effort to find the right place.
Let us say that you have found the perfect place. The neighborhood fits the bill. It is near a school and other essential facilities. But you are still financially tied to your current house.
As a rule of thumb, before you take on a new financial responsibility, you must be free of your current one. It will not do any good if you are juggling financial responsibilities.
This scenario will be ok if the new mortgage rate is lower than your current one. You might get excited with the idea of a lower interest rate. But you have to remember that you need to shell out additional cash before you can move into your new home.
On the other side of the spectrum, undertaking the home renovation by yourself may save you money. Of course, you would still need to purchase materials. But if you do the job yourself, you forego labor costs.
Let us continue with the example given earlier. You realized that you need to hire a general contractor to fix your home. After making some computations, you realized that renovation is more or less the same as the relocation expense. What will you do now?
Again, you need to research. Understanding all the factors in play will help you make an intelligent decision.
The Emotional Cost
You must consider the emotional cost of moving. Renovation can also cause some discomforts. When you make the decision, you have to take both of these into account.
If you decided to renovate your home, you have to cover your things in plastic. Doing this will prevent paint splatters on your furniture.
Let us say that your current home was an old house. When you upgrade the place, you will find it riddled with problems. Your home may have an asbestos roof and or lead-based paint. If you do have such a problem, you might have to stay in a hotel for a few days to fix those issues.
This situation is inconvenient. But you can lessen the impact if you prepare for all eventualities.
Relocating may be even more troublesome if you have kids. They will find it harder to cope up with the stress of moving to a new place. You must remember that they are leaving a community that they have grown to love. They have to abandon the comfort of what is familiar.
Of course, they will recover from it. The question here is which inconvenience are you willing to undergo.
Investing in real estate, especially land, can be very rewarding. This asset has a unique quality. Land cannot depreciate.
Whether you purchase a new home or stay in your current location, you have to weigh the different factors. Would the financial gains of a new property outweigh the costs?
Again, a little research will make a big difference in how things will play out. The information will help you prepare.