Should we renovate our aging home or buy a new construction house?
Renovating an aging home requires throwing $100,000 to $150,000 at major updates like damaged flooring, cabinets, and shower inserts without gaining extra space or a better layout. This leaves homeowners torn between sinking massive costs into a dated property or taking on the financial risk of buying a new build while trying to protect their retirement savings.
What the numbers show
Counted from the threads quoted below. How we count
- This comes up 11.3× more often in r/personalfinance than across the site as a whole.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Staying in the current home and paying cash to update floors, cabinets, counters, and bathroomsDid this help you?
- 2Making extra monthly principal payments to pay off the remaining mortgage quicklyDid this help you?
- 3Using existing investment funds to pay cash for the new house instead of taking out a mortgageDid this help you?
- 4Use a rent vs buy calculatorDid this help you?
- 5Rent for the first 6-12 months before deciding to buyDid this help you?
- 6Sell one of the existing income properties to finance a purchase laterDid this help you?
- 7continuing to rent for an additional year while saving moneyDid this help you?
- 8Staying put and trying to find things to appreciate about the current houseDid this help you?
- 9Doing major home renovations in stagesDid this help you?
- 10Using money saved from staying to fund private school tuition instead of moving for school districtsDid this help you?
- 11Taking out a HELOC or home equity loan to fund repairsDid this help you?
- 12taking an education course for first time buyingDid this help you?
- 13continuing to save money for a down payment while rentingDid this help you?
- 14Using online calculators like the New York Times buy versus rent calculatorDid this help you?
- 15Running financial comparisons in Excel based on estimated timeframes and total cost of ownershipDid this help you?
- 16Choosing to continue renting until absolutely certain about staying long-termDid this help you?
- 17waiting another year to save more money instead of borrowingDid this help you?
- 18leaving a list of project ideas sitting on the fridge indefinitelyDid this help you?
- 19Consulting with an architect to see how to renovate a split level homeDid this help you?
- 20Checking out the market with a realtor to see if a better house can be foundDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“My husband (55) and I (48) make about 160k per year ... plan to sell our completely paid off home to buy a new construction home ... Thoughts? Does this seem risky?”source ↗
“The alternative is to stay in our current home and throw $100k-$150k at updates ... and not have more space or improved layout BUT overall save some money...”source ↗
“I am trying to purchase my first home currently and I just wanna know if I have enough.”source ↗
“Should I do it or should I just rent for a year and keep saving?”source ↗
“What would be the best option for me in terms of putting money on rent or mortgage?”source ↗
“We need to do one or another. Our current home is aging quickly and requires updates to the damaged flooring, cabinets and shower inserts...”source ↗
“I bought a house for 450k. Paid 2800 a month for over a year now. And paid 5k total towards principle. Also within one year ac needed to replace and roof had 2 major leaks. 😅 Take that information and determine for yourself”source ↗
“Here’s where we disagree: I would rather rent a place in NC for around $2,600/month and invest the $1,000/month difference compared with what we’re currently paying. He would rather buy a house for around $300K and take $60K from our savings/investments for the down payment.”source ↗
“We can afford to buy, but we're not sure we'll stay here longer than 4–5 years.”source ↗
“Between mortgage interest, taxes, insurance, maintenance, closing/selling costs, and the opportunity cost of a down payment, I'm not sure whether buying is the right move financially.”source ↗
“i bought my place a few years ago and there are a bunch of things i'd like to update, but every time i get estimates the numbers are higher than i expect.”source ↗
“the problem is that every time i think about financing it, i start wondering if i should just wait another year and save more instead.”source ↗
“has anyone else been stuck in that spot where the work needs to get done, but pulling the trigger never feels like the right move????”source ↗
“Although we love our home, there are a few things I’m not super crazy about - it’s a split level so noise travels throughout the house easily, the kitchen is small and one of the kids’ bedrooms is small.”source ↗
“I would much prefer a cottage-style home but the location of our home is amazing, we can’t get better for the kids…”source ↗
“I ran through so many scenarios and I just don’t know what to do.”source ↗
“To get a new house w another bed/bath, my mortgage would increase $1000. It’s going to hurt”source ↗
“We have the money to spend for renovations but the question is if it’s worth spending it on current to make it slightly/med better.”source ↗
“Started looking at new houses and now getting tired of my house. I would want considerable renovations if I stay. My current rate is 4%. What would yall do?”source ↗
“As stated, getting tired/bored of my house as it’s so small. Did some renovations but would need a considerable amount more for it to be comfortable.”source ↗
Where this came up
People with this problem also raised
- 4Should I finish an unfinished garage before selling my house?
- 9Is a luxury home upgrade worth giving up financial flexibility?
- 2Is paying for a home reappraisal worth it if you aren't selling?
- 6Is buying a cheap mobile home better than renting a house?
- 6Should I buy a house with conflicting roof damage reports?
- 10How to stop renovating and just enjoy a new house