How can I be happy with my home? I want a new home but don't want a big mortgage?

Question

I own a townhouse that is not attached to any other houses.


It has:
a 2 car garage
1650 square feet
3 bedrooms and 2.5 baths
a small backyard that is the size of a huge patio and I wouldn’t really call it a “backyard”
NO front yard since it’s a hill and plants

I will have the mortgage paid off next year. My house was built 20 years ago so its really dated.

My friends have huge fancy homes. Obviously they have huge mortgages too. I am sometimes bummed out since my home is not as nice as theirs.


Do you think if I did a little remodeling I would feel happier with my home? The home owner’s only allows simple remodeling like updating the kitchen, replacing tile, painting, etc.

I was thinking of gutting out the house and replacing everything with updated stuff since my tile, kitchen and everything else looks very 80’s.


Any ideas? I don’t want to be house poor like my friends because I want a newer home, but I want to be happy with what I have.

Answer 1

What ever makes you happy. Make sure what ever you do is what you want.

Answer 2

My primary home was built in 1952. I have been remodeling for the past 2.5 years. So far we have replaced 1 bathroom, all of the interior drywall as the original wall surfaces were plaster and cracking; we have added a new master bedroom/bath and a 2 car garage. The last item we will tackle will be the kitchen sometime in the next 2 years...

If you like the area where you live and your home is almost paid off I would do some shopping. Get yourself some estimates from a couple of contractors for remodeling as well as just finding out what replacing all of the appliances will run you. After getting these numbers get an idea of what your property may sell for and what the price of a newer home would be and go with whatever option makes the most economic sense.

Keep in mind that if you undertake a large remodeling project you will have to live with the inconvience of dust, dirt, missing flooring. dismantled restrooms/kitchens etc... This can be a huge issue for many homeowners.

Lastly, if you decide to go the remodel route you will need to determine how your going to pay for the work so be ready if you decide to do the remodeling. Many contractors prices will only be valid for 20-30 days from the quote date which allows you some time to determine if you want to sign the contract. If your going to do a home loan for the work remember it can take several weeks for a loan to close and for you to get your funds.

Best of luck in whatever you decide!

Kevin 866-562-6838 x 106
[e-mail]
www.firstratelending.com

Answer 3

You have to analyze the logic and reason behind your emotions and see what makes sense financially. Buying a bigger home to keep up with your friends is not a good idea if it means drowning in debt every month. Neither is remodeling a home when the cause of your emotions is not having a back yard or a bigger place.

If you're interested in knowing your options, you can contact me and we can go over the specifics of your situation and I can show you your best options. Since I am an independant broker with a keen knowledge about real estate investing, I can do more for you at a lower cost. Whether it is a home loan, buying or listing your property. For example, I can list your home for 3% total commission or split my commission with you on any home you buy. I can find you the best loan program that meets your needs and I will actually show you how much money I make from the lender if I charge you a certain rate (I have nothing to hide). If you live in your current property less than 2 years, we can do a 1031 exchange. We can also do a bridge loan so you don't have to wait for your home to sell before buying your new home. We might even determine to keep your existing home and use the equity (if need be) to put down on your new home. There are so many options based on your situation that we can discuss. I personally believe that real estate is not just about buying, selling or acquiring loans; It's about finding the best solution that meets your needs and those of your kids.

Again, contact me if you want to discuss this. My license number is 01737366 and can be verified at www.dre.ca.gov.

Regards

Answer 4

Do you need a bigger home? Have you had kids recently or started a home business that requires more room? If not, then you'd be crazy to run out and get a bigger place that will only require more cleaning, maintenance, and a lot more house payments.

Next year you're going to have a big increase in disposable income. Can you friends say that? You'll be able to take fancy trips, go out to entertainment and meals more, and buy new cars more often, while they're staying home and paying their huge mortgage.

20 years is not really that dated. Sure, go ahead do some remodeling if you wish, but you've got a good thing going. Don't blow it.

Answer 5

Hey here's what you do... If you want a bigger home or you really want to move DON'T do any big remodels!! As an Agent I'm telling you because you are almost done with your mortgage you are ahead of the game. when you remodel only to sell you only get about 1/3 of the amount it cost you to renovate added to the asking price of the home. (Of course this depends on present market value and the condition of the home to begin with.) If you are content with your neighborhood and where it is going(increase in values) REMODEL!! Do whatever you need to do to please your self. Even if you choose to sell years from now EVERYTHING IS SELL-ABLE!!! How? Everyone needs a home. So renovate and put whatever you love into it, just be financially sensible about it.

Answer 6

I'd say it depends on your needs and how comfortable you are with debt. Having your house paid off is huge by today's standards and can give you a greater sense of freedom than your friends might have with their big house and assumed big mortgages. Personally, I'd say you had the bigger advantage.

Instead of spending big bucks on remodeling, you may consider simple inexpensive changes such as painting a room, replacing some furniture, landscaping the front yard or fixing up other areas in need or repair. Bigger isn't necessary better and being content with what we have can be one of life's greatest achievements.

Answer 7

sounds like you need to check with a real estate agent and find something fits you ..