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Let’s say Jane bought a starting house 10 years ago and it’s not growing yet. Because his mortgage on the house was so cheap, he forced himself to stay in it longer than he expected.
But now the friend has given birth and has no place. And when he saw houses in various towns in the neighborhood where he now lives, there was nothing he wanted to buy or move on financially.
As such, my friend is going through the extension of her current home. It was an expensive and complicated project, but at the moment she wanted more space than a child, and she still had to find a suitable home to offer.
If you are in the same boat that needs more accommodation, you may want to consider a surcharge. But is it reasonable to wear it, or should you buy a new home? Here’s how you can decide.
1. Which option is cheaper?
The decision to build your existing house versus buying a new one can come at a cost.
If necessary, get offers from contractors and architects to see what the cost of the add-on will look like.
Then compare it to what you would spend on a new home. If the number is lower, you will find the answer there. 2. Do I love the place where I live?
You may not feel particularly attached to your neighborhood, so the idea of moving to another may not intimidate you.
On the other hand, if you love the place where you live and have family and friends in the city, you probably won’t want to leave.
Similarly, your children may be enrolled in your local school district and therefore do not want to move to another city. In that case, it makes more sense to move forward with more so you can stay where you are.
2. Does my home have features that are hard to find elsewhere?
Maybe your house has a nice outdoor layout with a multi-level terrace, gazebo, and hot tub.
Or maybe the interior of your house is full of artistic design that you know is almost impossible to find in another house.
If you are worried that you will have to give up the required parts by moving, then building your current home may be a better bet than moving to a new one.
3. Know where you are going
Creating an add-on is not for the faint of heart. In my friend’s case, this meant that he had to leave his house for a few months and live with his family until the job was done.
It also means the risk that the project will run longer than expected or that it will have higher costs than required by its original estimate.
He specifically decided to spend his project on a domestic credit line such as HELOC, so it was much easier to borrow.
However, getting more is the right step for him and it can also be the right choice for you. If you decide to go this route, make sure you know what you are applying for.
Reference Source: The Ascent
