Sell Or Renovate: What Should You Choose?
Ramesh Sinha, a 55-year-old banker, has been living in a home his parents had written in his name. An old construction, the 2BHK apartment, needs renovation as well as the expansion of space, given his son is getting married soon. While Sinha is thinking of renovating the property, his son feels that they should sell this one and invest in a new apartment that is bigger, too.
Living in an old construction, renovation of which is long pending? It is time to take that decision of whether you want to give this property a makeover or buy a new home altogether. If you are also in a fix, MakaaniQ lists factors you must consider before taking a decision.
Estimate cost of buying and selling v/s cost of renovating
This estimation will depend on certain factors and hence, would require you to ask yourself certain questions, like these:
- What all does the property require when you say renovation?
- Does renovation mean a complete upgradation of the standard of the property?
- Can you afford a home loan for a new property or a renovation loan?
If more than 50 per cent of your property needs renovation, selling it to buy a new one would be a viable option. What if the renovation supports the old construction, and the maintenance it would require.
It is suggested you give the property a makeover enough to make it look saleable and put it on the market.
Can you find a better neighbourhood?
This is a concern for those who have been living in the same locality for decades, as in Sinha's case. He had been living in the property since he was a teenager. Know whether or not you will be able to adjust in the new locality; the civic and social infrastructure of localities that you might consider; and even, your connect and relation with the neighbours. In case you can't fathom living somewhere else, renovation is a choice you will have to make.
Know the miscellaneous costs
Not just buying and selling or just renovating the property, in both the scenarios you will witness various miscellaneous costs. For instance, in case of buying and selling, the cost of property visits, the cost of agents, the cost of paperwork and fees to authorities and even the cost of moving out and into the new property, must be listed. On the other hand, a renovation would require you to make various rounds to the markets, select products, deal with wear and tear during the process, pay contractors and the maintenance later. Add these costs to your bigger cost of buying-selling and renovation. Pick what you think is financially viable.