Prices on the housing market are still rising. Due to the high house prices you may wonder what is more sensible to do: renovate or move? Read more in this blog about why it is smarter to renovate than to relocate.
Renovate or move?
Are you actually satisfied with the home that you have now? But does your home need a makeover? Or do you live to your liking but do you miss space in your house because family expansion is on the way? In both cases, a renovation can offer a solution. For example by placing a dormer window, an extension of your living room or a new kitchen. Or maybe your bathroom needs a renovation. Whatever your housing requirements are, make a good inventory of the costs in advance so that you can make an informed decision: renovate or move.
The costs of a dormer window, new bathroom or kitchen may be lower than a move. Don’t forget that extra costs are also involved in a move. Often the new home needs to be painted and new curtains have to be added. It is very important that many other costs are involved in a relocation: think of transfer tax, notary and closing costs (costs buyer). In addition, you will also have to deal with the new tax legislation regarding the limitation of mortgage interest deduction.
And if you have to sell the old home at a loss, moving becomes an expensive affair. It is also possible that it takes a long time to sell your old home and that you are therefore temporarily dealing with two homes and therefore with double housing costs.
Existing owner-occupied homes have become 7.2 percent more expensive in May this year than a year earlier, reports the Central Bureau of Statistics (CBS). All the more reason to consider a renovation to save money.
Renovate bathroom or kitchen
Rebuilding your bathroom or kitchen is a smart option. A new bathroom or kitchen is often a big expense. Therefore, first determine your budget in advance. Request a quote from different contractors to get a good idea of the costs. You can then compare the costs of a new bathroom or kitchen with each other and thus make a good choice as to which party you wish to work with in order to have your renovation realized.
Home improvement? Take unexpected costs into account
Always keep an amount separate for unforeseen costs when renovating your house. If you take a new bathroom or kitchen, for example, damage can come up after demolition. Such a repair costs extra money. Nibud advises to keep 5% of the quotation price at bay for unforeseen expenses.
A renovation is a major investment. Do you have insufficient savings? Then a renovation loan is a good option.
The National Credit Checker offers a suitable loan to pay for your renovation. At ABC you borrow money for a renovation on clear terms and with the best interest.