To Move or to Renovate…That is the Question!

With the new tax credits and the ever fluctuating real estate market in BC, many people are weighing their home-ownership options.  Am I better off moving into a new home, or renovating my current home?  The answer lies with the circumstances of the question.  What needs have changed that are not satisfied by your current home?If you are considering moving, here are a few items that may help you make your decision:

• Renovate if…you love the neighborhood, your house can be renovated to meet your needs, you can’t afford to buy the house you want or need,
• Move if… the neighborhood no longer satisfies your needs, your home cannot be renovated to suit your needs, you are not willing to live through a renovation or you do not have access to people who can renovate it

Most decisions in life have in some form or another financial ties.  In this situation the question becomes, how do I finance my decision?  If you choose to renovate, there are many home construction and renovation loans that are available to help you do this.  Another option is a home line of credit that affords you the flexibility of a line of credit that can be paid off very quickly or in an extended length of time.

If you choose to buy, you would most likely be needing a new mortgage for your new home, if you cannot port your existing mortgage to your new home.  In this instance you will be presented with many options that may suit your needs ranging from fixed rate products to variable rate products with a range of terms and amortization periods.

The bottom line is: look at your finances to see what you can afford, perhaps consult your mortgage advisor to help you figure out what your options look like on paper.  The next step, depending on your financial situation, is to evaluate your answers to the questions above to determine whether you would like to renovate or move.  Once you have completed these two steps, you are on your way to upgrading your home, either by renovating or moving!