Bathroom Remodel Santa Clara: The Solera Group
For your bathroom remodeling in the greater San Jose metro area, please contact us, The Solera Group for a no obligation consultation. We service from San Jose, as far north as Redwood City and Livermore.
Renovating over Moving
Upgrading to a new home can be very expensive. Partly the increasing costs of housing are making buying a new home less affordable, and in California when you’ve owned your current home for several years, buying a new one at today’s market prices might double or even triple your property taxes.
When you need an upgraded home (kitchen, bathroom, or other room) renovating can be MUCH cheaper.
Realtors will almost always point out the things you can not renovate away (lot size for example) because they have an economic interest in you moving.
Remodeling contractors will almost always point out the fairly significant increase in your future mortgage payments and property taxes because they (we) have an economic interest in renovating.
So you do your own math.
You know your current monthly payments for your mortgage, insurance, and property taxes. Create a reasonable scenario for a move and know what your future monthly expenses are likely to be for a move.
The next important question is what is your break even point.
In this example I’ll use ridiculously low numbers for purposes of making a point.
Let’s pretend that today your total monthly outlays are $2K and if you move they will increase to $3K.
Let’s further pretend your total remodel costs will be $45K.
In this scenario your break even is 45 months away.
That is if you spend the $45K today and avoid increasing your monthly expenses by $1K per month you will recoup the initial $45K in just under four years.
Of course there are consideration such as the cost of money and lost interest and such, but I’m trying to use a simple example to illustrate a point.
If you’re planning to stay in your home for 4 years or more, renovation is the better financial option.
Planning your bathroom remodel? Then do yourself a favor and …..