Friday, January 3, 2014
Owning your own residential property is one of the ways to becoming financially stable. However, as your family grows, you may also need more space. This often begs the question of purchasing a larger home that suits your needs or modifying and adding to your existing residence for a better fit.
Many may be excited about embarking on a renovation project, where you can create a new space just the way you imagine it. However, there are also some financial factors that should be taken into consideration with this decision.
Expanding your home will add value to your property. Adding the right features into your home can make your property desirable when you decide to sell it later on. However, it is important to exercise restraint on home additions. Improving your home may put it at a value that is too high for your location. Selling your property later on may prove to be difficult, especially if it’s the most expensive one around your neighborhood.
Doing a home addition project will most likely be less expensive than acquiring a new home with your desired floor area. If you’re already well settled and attached to your home location, opting to expand your home provides you the best of both worlds. Aside from the financial cost of renovating, it will also entail much of your time and effort to pull off. You should consider whether you can commit to this as well.
When having a renovation project in your home, one thing you will also have to decide is if you’re going to stay at home while the remodeling is taking place. Construction noise and dirt will definitely disrupt your everyday life and there may be health hazards. Construction workers will also be constantly working, coming and going through your home, thus taking away much of your privacy. If you decide to stay out of your home, you may have to factor in rental expenses.
Expanding your home will also inevitably increase your utility bills. Extra space will have extra lighting and air-conditioning, thus affecting your electricity bill. It will also be an extra space to clean and maintain. These costs will be carried over the long term, regularly. So consider whether you can afford these regular expenses as well. - Aislinn Kee