Homeownership has often been one of the key components of the “American Dream”—nine of every ten people achieve it in their lifetime. For many, like Jason Hartman, the dream of homeownership extends past the self and into investment opportunities. For others, it means buying a house and then a nicer house and then an even nicer house. A person or family can choose to move for a number of different reasons—increase in income, expansion or reduction of family, need for more space.
The housing market is constantly changing, so we’ve seen individuals reconsider their housing situation in many ways. In times when the market is booming, some people choose to simply relocate. When houses decrease in value, other homeowners choose to remodel their existing house. There’s a case to be made for each.
The Case for Relocating
Moving can often be a fun new opportunity for a family, filled with new adventures involving schools, friends, and jobs. It can provide a new start by allowing you to begin again from scratch. A new area can be a refreshing change or provide excellent new career opportunities for a family.
The other advantage relocating gives is that it offers a traditional and familiar venue for the sale and purchase of a home. The real estate agent handles the sale of the old home and the search for a new one, a mortgage lender coordinated the new purchase, etc. It’s a familiar process with a set order. You’re also likely to get major tax benefits with this option.
The Case for Remodeling
Remodeling can be a great option for individuals or families because it is generally cheaper (on a per-square-foot basis) than buying a new house outright. Remodeling also increases the overall value of a home, should a homeowner choose to later sell. Making improvements to an existing house also offers a level of stability, as you’re in the same neighborhoods, schools, etc. Because moving is high on the list of life events causing the most stress, this can be very beneficial. You’ve also got the upper hand on your new-old house. You know what utilities are and when the furnace needs replaced.
Perhaps the best part of a remodel is the ability to customize a house you already love. Maybe you want hardwood and a wrap-around deck. Maybe a kitchen island or bigger bedroom or walk-in closet. You can make the house you know the house you love with these adjustments.
Both have their advantages and disadvantages—ultimately, its about finding a solution that is exactly right for you. Relocate or remodel, you’ll be happy to live in the house of your dreams.
The Young Wealth Team