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Forum
-> Household Management
-> Finances
amother
OP
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Wed, Jan 01 2020, 9:28 am
BH we are in the market for a bigger home. Just curious if anyone has had a similar situation. Is it better to make an addition to our current home which would be perfect for our family regarding size etc but never make our money back and lose a significant amount if we were to every try and resell it, versus buying something which is a bit dated, smaller (although bigger lot size) but it will most definitely go up in value over time and we will most likely make a nice profit if we were to sell it in a few years.
Right now we think that we will stay long term in whichever house we decide to go with but I feel like one never knows where life will take them.
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ssspectacular
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Wed, Jan 01 2020, 9:42 am
It depends on your attitude. Will you be happy if you move? Don't make decision solely on basis of profit. But if you will be ok in the new place, then why not?
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nchr
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Wed, Jan 01 2020, 9:46 am
A primary residence is not a business investment. You should do what is most appropriate for your personal needs, within a budget you can reasonably now and in future afford.
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Amarante
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Wed, Jan 01 2020, 9:53 am
House additions are much more expensive than purchasing an equivalent sized home.
Why are you moving to a smaller home if you need a bigger home? I don't understand how that makes sense. Why not find a home that meets your family's current needs.
But as posted by nchr, ultimately your family home should be geared to the comfort and taste of your family and not viewed as an investment. If you have the money to renovate your existing home so that it will be perfect for your family and moving to an existing home that is suitable is not an option for some reason, why not?
It's actually a fallacy by home improvement shows on HGTV that home renovations provide a return on your investment. Actually generally you don't make money on any kind of home improvement - I.e. if you spend $30,000 to renovate your bathroom, the sales price of your home won't go up by $30,000. Unless of course there are unusual circumstances like people doing a lot of DIY.
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amother
Red
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Wed, Jan 01 2020, 9:54 am
amother [ OP ] wrote: | BH we are in the market for a bigger home. Just curious if anyone has had a similar situation. Is it better to make an addition to our current home which would be perfect for our family regarding size etc but never make our money back and lose a significant amount if we were to every try and resell it, versus buying something which is a bit dated, smaller (although bigger lot size) but it will most definitely go up in value over time and we will most likely make a nice profit if we were to sell it in a few years.
Right now we think that we will stay long term in whichever house we decide to go with but I feel like one never knows where life will take them. |
I went with the first option and I regret it now.
We went with a house that was big and cheap and not in the most desirable location. We put in a lot of money to make improvements that benefit us but not necessarily increase resale value.
I regret it now bc then I thought we'd live here permanently but now my husband wants to move to a different area and we can't afford it bc we'd lose money on the sale.
ETA: Sorry, OP, I missed the part that your option was to make renovations to your current home vs buying another . I'd definitely choose to do that and save myself the hassle and cost of moving.
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amother
OP
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Wed, Jan 01 2020, 10:03 am
Amarante wrote: | House additions are much more expensive than purchasing an equivalent sized home.
Why are you moving to a smaller home if you need a bigger home? I don't understand how that makes sense. Why not find a home that meets your family's current needs.
But as posted by nchr, ultimately your family home should be geared to the comfort and taste of your family and not viewed as an investment. If you have the money to renovate your existing home so that it will be perfect for your family and moving to an existing home that is suitable is not an option for some reason, why not?
It's actually a fallacy by home improvement shows on HGTV that home renovations provide a return on your investment. Actually generally you don't make money on any kind of home improvement - I.e. if you spend $30,000 to renovate your bathroom, the sales price of your home won't go up by $30,000. Unless of course there are unusual circumstances like people doing a lot of DIY. |
Thanks for responding. I agree with what you said regarding not making money off improvements.
In this situation, the final price will be less for doing our addition than purchasing a new house. The end product would be similar in size to the potential house that we want to buy but the set up, and number of bedrooms etc would work better for us if we added onto our current home.
I do view a home as an investment. Older ppl often sell their home to move into an apt or assisted living or a smaller home and live off the proceeds from the sale of their house.
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amother
Forestgreen
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Wed, Jan 01 2020, 10:04 am
amother [ OP ] wrote: | Thanks for responding. I agree with what you said regarding not making money off improvements.
In this situation, the final price will be less for doing our addition than purchasing a new house. The end product would be similar in size to the potential house that we want to buy but the set up, and number of bedrooms etc would work better for us if we added onto our current home.
I do view a home as an investment. Older ppl often sell their home to move into an apt or assisted living or a smaller home and live off the proceeds from the sale of their house. |
If you are concerned about a retirement, please look into some financial planning.
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amother
Crimson
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Wed, Jan 01 2020, 10:05 am
interesting...
we added a second floor on our house, sold it a few years later and definitely made a profit but we also went with a cheaper contractor that we weren't thrilled with so I can see how if we had gone with the more expensive one that wouldn't have been the case.
while moving is a hassle so is construction, a big one. Where will you be living while you do the construction?
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amother
Vermilion
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Wed, Jan 01 2020, 12:04 pm
Can you wait a little while longer, maybe other houses will go up for sale that make more sense in the way it is set up for your family?
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