Owning a home is one of the many accomplishments in life that we take pride of since it comes after years of meticulous planning and rational spending. Having a home that we can call our own not only provides a shelter to self and loved ones, but also secures the future. If you’re buying home for the first time, the task is relatively easy since it does not involve painstaking thoughts.
On the flipside, if you already own one and struck at crossroads in deciding whether you want to renovate the existing unit or buy a new one, the process can be tricky. There are plenty of reasons we scout for additional space, the foremost being the need for expansion as the family grows. A home that you bought as a bachelor may not be sufficient after marriage when you have a family. Space constraint, location, vicinity are some of the factors that we worry about when we decide to buy a new one or go for renovation.
After all, it's not an easy process since it involves tedious planning. If you’re caught between deciding whether to buy a new unit or renovate the existing one, here are some points that can help you to decide.
Buying a New Home
Buying a new home is an experience within itself since it involves tasks that we probably may not go through often. Lets look at some of the pros and cons of buying a new home over renovating an existing unit.
- Buying a home offers a fresh lease of life since it's a new beginning altogether, especially if you’ve been living in the current one for a few years now. You’re moving to a new locality, perhaps to a new city into a new neighborhood. You have a home with the latest facilities and features where you can customize the various aspects as per your liking.
- If you’ve bought one in a prime locality or a suburb, you can look forward to the property prices heading north in the coming years, thus increasing your overall asset value.
- It also transpires into little maintenance issues as you don’t have to deal with older structure or consider replacing fixtures not functioning properly.
- Though exciting, the whole process of buying a home can be painstaking since it involves multiple processes such as arranging for funds, scouting for trusted builders, applying for a loan and so on.
- Monetary feasibility will remain a challenge since buying a home is a costly affair. Other commitments and events in life may be sidelined due to our quest to buy a home versus renovating the existing one.
- It can be sentimentally challenging too if you’re contemplating on moving out of the existing home after living there for a long time. You and your family may find deep attachment to the existing dwelling unit, the vicinity or the neighborhood.
Renovating Existing Home
This mammoth task can be as exciting as buying a home itself since you know in and out of the existing home and thus can meticulously plan the revamp. It is highly feasible since you’re not investing in a new one and can work in your favor. Lets look at some of the most prominent pros and cons of renovation.
- Expect huge savings when compared to buying since the costs involved are more or less within reach. Even if you are planning on building an additional floor or considering a major overhaul, the finances are within reach. Smaller corrections go soft on your wallet.
- Since you’ve lived there for a substantial time, you know the nitty gritties of the home which makes it a lot more easier to chalk out a detailed plan to get the alteration done.
- The overhaul task can create cherishing movements since you’re more or less taking personal interest in renovation, creating times that you can be proud of.
- The time and efforts invested can take a toll on your personal life since renovation work can eat up your personal space, depending on the overhaul planned.
- If you’re considering a major rework, arranging and scouting for resources can be a task within itself, especially if you’re a working professional. You may not be able to invest the required time in carrying out this task.
- If you’re looking for creation of further space and ease up portions of the house, the renovation may not do justice as the success depends on multiple factors. The final outcome may not match the blueprint.
Well, we hope the detailed breakup above would help you in your endeavor to increase the living space or scout for a new property.
The Need for Housing Loan
More often than not, renovation or purchasing a new house is not easy financially and easily fulfilled by means of borrowing. In such cases, a housing loan comes into picture. It offers to meet the costs upfront and lets you payback in monthly amortizations at affordable rates. Banks and financial institutions in the Philippines offer financial assistance for a variety of housing needs such as purchasing a house or a lot, acquiring a condo unit and for renovation works as well. If you’re under tight budget with limited liquidity, it makes sense to get a loan and payback in monthly amortizations as per convenience.
If you’re mulling over the idea of getting a loan, be sure to compare various products offered by banks in the Philippines as its paramount to get the right deal. Since paying off a home loan is a long term commitment, being judicious at the time of availment does the trick.