It always amazes me how many people throw money at their older home, expecting the renovations in increase the value of it significantly. The amount of money that gets put towards renovations or continued maintenance can be saved for a down payment for a new house. Of course there are plenty of reasons why a person wants to stay in their current home: convenience, the area or community, and the nostalgic feeling all make sense. Sometimes it makes more sense to start saving for a new custom home and here are a few reasons.
Many fixes take time and money. As mentioned before there are some people who know how to perform regular maintenance and smaller fixes to a home. Many others do not have those skills or the time, so they call on professional help. Having to pay someone to routinely maintain your home adds up over time. Again, some of these may be necessary to live in the home, but some may not. Generally speaking there are two rules of thumb that homebuyers go by to factor in the budget of the home. The first is the 1% rule, expect about 1% of the price of the home to go into maintenance every year. The second is the square foot rule. You should budget $1 for each square foot of the home and expect that much be needed each year. Both of these rules can be used when purchasing a new home, but the point here is that a lot goes into keeping a house looking young. This article goes into more detail
Two common issues homebuyers have to spend a lot of money on:
- New roof every 20-25 years – If you find yourself wondering if you should replace your roof know that it costs anywhere from $100 to $1,500 per 100 square foot depending on the size and style. It can get very costly.
- Replacing siding – Another cost anywhere from $6,000-$15,000 depending on the size of the home. Keeping the siding and lowering the selling price of the home can help finance the purchase of a new home quicker.
Chance to Relocate
Many people wait until they receive the promotion they have been working years for before they do any major upgrades to their home. What this means is they are living in a place they don’t enjoy for such a long time on a hope that this life “upgrade” happens. We all know life cant be planned, wrenches are thrown into plans when you least expect it. So assuming that pay bump will make it easier to upgrade your home at a later date may not be the best decision. Instead, stay somewhere that is finished and livable that doesn’t need to be remodeled. This way once you hit your career goals you can move to the exact place you want to be in the home of your dreams. Living in the not-so-good part of town for a couple years in order to save some money will help you have the opportunity to move to a much nicer area if that is your goal. Even better, if you have the financial freedom, moving to a new city in your own custom home can be the perfect retirement goal.
You can add an (costly) extension off the house to create a room you want, but you can’t choose the layout. The great thing about a custom home of your own is that it can be completely yours. You get to choose how you want the house to look, what rooms to put where, and the overall style. Being able to have new appliances comes next.
Energy Efficient Appliances
People may replace their refrigerator, oven, television, lightbulbs, furnace, air vents, toilets, all to save money in the long run. Being energy efficient can absolutely save you money, and chances are the appliances from 15-20 years ago are sucking your money through the electricity bill. But with all of the things mentioned above in this article, if waiting out and saving that upfront cash is worth it to you, then waiting to replace appliances can be a huge boost to the upfront cost of purchasing a new home. If your fridge breaks, you obviously need to buy a new one. But instead of buying the top of the line you can purchase an older model that still works well. If you buy an older model there will be plenty of reviews of previous customers to see if these are able to last the length of time until you buy a new home. So by waiting to buy top of the line appliances in your old home you can save a bit of cash to move yourself into the home of your dreams. Look at some of the features the future will hold for your appliances http://texcustomhomes.com/your-future-now/.