Hire a Contractor to Remodel or Start Over?
This is a question that most homeowners are usually faced with at one time or another.
You will realize that once you renovate your home, it will look more beautiful and attractive. This is the reason why most homeowners remodel their homes from time to time. However, you are likely to incur some costs when you decide to renovate your house. You need to hire a professional to do the job for you who is licensed and has a contractor bond in place. Depending on where you live your contractor may need a specific type of bond in addition to their standard license bond, such as the LLC emplyee worker bond in California. This means that you have to be prepared financially to complete this project. However, you can still buy a new home and save a lot of time that you could have spent on remodeling.
There are several things that you should consider before you make a right decision.
1. Your budget.
Home remodeling can be a costly undertaking. If you have several places that require remodeling, you might spend a lot of money. If the cost of renovating your home is high, you can consider buying a new home. You will realize that a new home will look more beautiful and attractive. You might spend a lot of money on it, but it is worth it.
2. Location of your home.
One of those things that affect the value of a house is its location. If it near an urban area, it is likely to cost higher than those homes in remote areas. If your home is near an urban area, you can consider renovating it and later sell it. You will realize that if you live in a desirable neighborhood and the property values are on the rise, you can consider remodeling it. You might later sell it at a higher price and buy a better home.
3. Whether you need a loan to remodel or not.
You will realize that if you do not have enough money for remodeling, you will need to secure a loan to complete this project. Most lending institutions will be looking for a home equity line of credit loan. You will realize that the interest rate you pay on the average home equity loan is usually lower than a credit card or other non-secured debt. However, the interest rate is not as low as you can get on a conventional home loan. The interest on home equity loans in normally tax deductible just as a standard home loan.
If you do not have enough equity in your home to secure a loan, you can apply for an FHA home improvement loan. These are several institutions that offset this type of loan. They normally carry low-interest rates. You can readily apply for this loan as a homeowner. The eligibility is not restrictive as most mortgage loans.
Those are some of the factors that you should consider before coming up with the decision whether to buy a new home or remodel your current home. Everybody would like to have a beautiful home. If you do decide to stay in your home be sure that your remodeling contractor has a bond with a licensed bonding agency. This will protect against and difficulties if they are to arise in the future. Doing your fair share of due-diligence early is well worth the time and effort to ensure things are done properly.