Pros and cons of home renovation
Making a list of pros and cons can be a good starting point to help you decide if a house renovation is right for you. Let’s take a look at how a renovation can be a good or bad choice, depending on your circumstances.
Pros of a home renovation
- It can increase the value of your property: This is great news for people planning on selling their house. With the right renovation ideas, you could significantly increase the price of your house. And for property investors it can generate a significant profit.
- It’s more budget-friendly than buying a new house: A house renovation can be more affordable than moving to a new and bigger home which may mean you need to take out a new loan or refinance.
- It allows you to add your personal touch: With your renovation ideas, you can add your own personal touch, expectations and desires to your existing home as compared to relocating to a new house that only has a few features that you want.
- You can expand your space: Other than adding your personal touches, a renovation can also allow you to create more space. This is ideal for growing families.
- Improve and update your house: Your old house may seem like it’s stuck in olden times but a renovation can update it to meet your needs.
Cons of a home renovation
- There’s a possibility you may overcapitalise: This is the most common mistake when doing a house renovation where the cost of renovations outweighs the amount of value added to the property.
- There’s no guarantee you’ll get your money back: Wrong renovation ideas can really put a seller off come sale day. Over spending or going over budget can be a waste of time and effort.
- You may need to move out or rent through the renovation process: A house renovation means your home will be a construction zone for a number of weeks or even months. You may need to move out and live with family or friends, or rent a place. This can be a stressful inconvenience where you also need to shell out money.
Whatever your reason for a home renovation, weighing the pros and cons methodically will help you with the decision. Make sure that you get your paper work and finances in order including applying for a construction loan if needed.