When you’ve outgrown your house, should you move or renovate? It’s a real-life Love It or List It scenario – and a tough decision, with pros and cons on both sides. A renovation can be long and stressful, although it’ll give you a home that’s exactly what you want. Moving can get you into a bigger home fast, but may mean leaving a neighbourhood you love.
Here are a few questions to ask if you’re trying to decide:
Are you in love with your area?
If you’re not willing to leave your neighbourhood, a reno is probably the way to go. If it’s a great community, homes may not come up for sale very often. So, unless the perfect house pops up down the street- I’d say stay and put up with the hassles of renovations.
One of my clients had a small house right on the lake in south Etobicoke – lakefront properties almost never come up. So, he renovated because he never could have found a comparable property for what it cost him to rebuild his house. He added a big extension, changed the layout to take advantage of the amazing view, and now has a one-of-a-kind home he loves.
On the other hand, I worked with another couple who lived in a great area. They were considering a reno, but then a small infill development went it, and they immediately jumped on it. Opportunities like that don’t come up often, but they do happen from time to time.
Are you prepared to live through a reno?
Renovating will always take more time, more money – and more hassle – than you think. If you stay in your house while it’s under construction, you’ll have to cope with dirt and dust, a muddy yard, holes in the walls, and tradespeople coming and going at all hours.
If you don’t stay in your house, you’ll have to find a place to live short-term. That means two moves to contend with, a mortgage and rent, storage costs, not to mention constant decisions about tiles, toilets, pot lights, etc.
Alternatively, you can move into a new house and be done. Last year, after going through this exact debate, I had one client who decided they couldn’t go through the hassle and expense of a reno. So, they sold their East York bungalow (probably to someone prepared to build something much bigger on the lot), and moved into a 3000+ square foot custom build nearby. They love their new place and don’t regret their decision.
Can you afford a reno?
It’s easy to determine if you can finance a new house. There’s the cost of the house, land transfer tax, a few other pre-determined expenses, and that’s it. Figuring out how much a reno is going to cost, on the other hand, is a whole different ballgame.
Yes, your contractor will give you a quote – but that’s not a fixed price, nor will it be your only expense. For example, if you decide you want a higher grade of flooring than the quote includes, it will cost more. If you run into electrical issues that need to be addressed, that’s another unexpected expense. Then there are architectural drawings, permits, lighting fixtures, and any “oh, since you’re already here, could you…” expenses – that add up fast.
Even if you can afford it, does a reno make financial sense?
In Toronto, a full teardown/new build will run you about $300-400 per square foot. So, a 2,500 square foot house would be $750K to a million. What would a comparable house in the area go for? If it’s a lot less than that, it may not make sense to make that kind of investment.
Do you want a custom home?
Renovating gives you complete control – your only limits are your budget and your imagination. You can get the two-person shower or the extra-large kitchen island, no problem. Buying an existing home – or even a new build with some custom options – doesn’t give you that kind of flexibility.
Still don’t know if a reno or a move is right for you? Get in touch – my team will be happy to give you the information you need to make an informed decision.
Want more Reno 411? Stay tuned for a guest post from mortgage broker Deren Hasip, who will talk about the ins and outs of financing a renovation.
