- Do you really want to move or are you
truly happy with your neighborhood, but just tired
of your home or its design?
Maybe you've outgrown your home... Or maybe you
just need to change it up a little? If it's just
an issue with space or the floorplan of your home,
and you aren't relocating for work or other reasons,
consider this...
- What is your lot size, property set-backs
or HOA regulations regarding building out or up?
You may live in a neighborhood where adding additional
square footage, or an additional floor on your
home is totally acceptable (and you have the room
to do it!)
- Will moving really benefit you, or make
you happy?
Do you really want to go through the moving process...
or do you really just want a change of scenery.
If a change of scenery is all you are after -
a major remodel can accomplish this.
- What are your tax or equity advantages
on a remodel?
If you live in southern CA, you live in an area
with skyrocketing home prices. People all around
your area are doing major remodels and/or adding
square footage to their homes and there's a good
reason for this. For example: If your home is
valued at $450,000, your property tax is probably
based on a price closer to what you paid (usually
30-40% less than your home's appraised value).
If the market in your area supports sales in the
$500K-$700+ zone (which it probably does), you
could rejuvenate your current home and instantly
add $250K-$350K+ in equity without raising
your tax liability much at all. If you
have $100K+ in equity in your home now, it could
be applied to your construction project (for the
short term), then upon completion, you could do
a total refinance and be left with $350K-$450K
in equity and a smaller monthly home payment based
on new (lower) interest rates!
- What are your tax or equity disadvantages
on moving entirely?
If you move in today's market, you are moving
in what's referred to as a 'sellers market'. In
other words, the only person who benefits from
you buying a new home, is the seller... True,
you are a seller too - but as soon as you find
a new home you are at the mercy of southern CA's
inflated property values.
Not only that, the minute you purchase your new
home, the county tax assessor is waiting to hear
what you paid and you will pay new property taxes
based on the 'sale price' of your home (not the
estimated annual increase that is usually assessed
by the county).
If you sell for $500,000 and then buy for $600,000
- $700,000, be prepared to pay twice the property
taxes you pay now for your new home.
Some people are forced to move for whatever reason(s).
For many others though, it boils down to a simple
matter of economics. If your neighborhood will support
higher sales prices then your home has been appraised
at, and you aren't be forced to move, you are a
prime candidate for a remodel and you should give
serious consideration to your options. |
