Said It Here

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 people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

  1. 1
    Staying in the current home and paying cash to update floors, cabinets, counters, and bathrooms
  2. 2
    Making extra monthly principal payments to pay off the remaining mortgage quickly
  3. 3
    Using existing investment funds to pay cash for the new house instead of taking out a mortgage
  4. 4
    Use a rent vs buy calculator
  5. 5
    Rent for the first 6-12 months before deciding to buy
  6. 6
    Sell one of the existing income properties to finance a purchase later
  7. 7
    continuing to rent for an additional year while saving money
  8. 8
    Staying put and trying to find things to appreciate about the current house
  9. 9
    Doing major home renovations in stages
  10. 10
    Using money saved from staying to fund private school tuition instead of moving for school districts
  11. 11
    Taking out a HELOC or home equity loan to fund repairs
  12. 12
    taking an education course for first time buying
  13. 13
    continuing to save money for a down payment while renting

In their words

Unedited, most upvoted first, 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 ↗

Kmar78 · r/personalfinance · 38 upvotes

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 ↗

Free_Pickle_5588 · r/personalfinance · 3 upvotes

What would be the best option for me in terms of putting money on rent or mortgage?source ↗

GovernmentIll5718 · r/personalfinance · 2 upvotes

I ran through so many scenarios and I just don’t know what to do.source ↗

Otherwise-Tomato-788 · r/HomeImprovement · 1 upvotes

To get a new house w another bed/bath, my mortgage would increase $1000. It’s going to hurtsource ↗

Otherwise-Tomato-788 · r/HomeImprovement · 1 upvotes

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 ↗

Otherwise-Tomato-788 · r/HomeImprovement · 1 upvotes

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 ↗

Kmar78 · r/personalfinance · 1 upvotes

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 ↗

Otherwise-Tomato-788 · r/HomeImprovement

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 ↗

imtinybuttmighty · r/personalfinance

Where this came up

People with this problem also raised