Your family might be growing, or you might have other reasons you need some extra space in your home. When this time comes, you generally have two options: you can either move to a bigger home, or you can build an extension on your house.
Moving
If you decide to move, then you get rid of the inconveniences caused by additions. Part of your house won’t be filled with dust, tools and construction materials not to mention people moving in and out of your home.
Moving can be quicker and easier, and may cost less than building onto your home. On top of that, it may be less stressful than a long term building project. A good realtor can help you sell your house and negotiate the price of the house you want to move into.
Pros
- Financing options – when you buy your first home successfully, it’s easier to get financing when you want to buy a second home as compared to when you are buying a home for the first time.
- A new beginning – moving guarantees you and your family a fresh start. Whether you are moving to another neighborhood, street or state, you meet new people, make new friends and settle into a new locality.
- Income tax – after selling your old home, you may end up with more money in your pocket. Depending on where you live, if you sell your home, you may be able to exclude up to $250,000of your capital gain from tax – or up to $500,000 for married couples.
Cons
- Moving – relocating to a new locality can be stressful. The process of moving can take time and energy.
- High costs – Depending on the market, you might have to pay more for the bigger house. How much the new house will cost you may depend on the equity you have in your current home.
Adding On To Your Current Home
An add-on may be less stressful in some ways, but can end up costing you more money and be stressful in other ways. You may have to hire a reliable contractor and get a new design for your add-on project. It’s may be fulfilling since you have a creative new home project you can be proud of, but it requires planning and also takes time.
Pros
- Adds a personal touch to your home. You can change the house to meet your personal desires and expectations. You get to say how your home should look like.
- Costs less. But not all the time. You have to plan and do your math if you want it to cost less. It can be less expensive to do an addition instead of buying a new home.
Cons
- Takes time – an addition can take considerable time to complete.
- Building restrictions. Different neighborhoods have different restrictions. Your idea of addition might not be acceptable in your area and it may break the rules.
- No privacy – for the next one to four weeks, you have to be willing to let go of your privacy. Strangers will be moving in and out of your home. Watch out for theft and messes.
- Costs. You need a contractor and an architect to get the best possible addition which is not cheap. You can choose to spend the few weeks in a hotel until the dust settles, but that means an extra cost for you.
- Not suitable for significant updates. If you have to update every room in the house, it’s generally better to move out and get a bigger house than spend all that time, money and energy doing updates.
