It seems like tearing down my house and rebuilding it just destroys the value in the structure. That's value that I could put into 'trading up' for a new place. But can't I afford much more house if I have it built myself? E.g., if I have a mortgage for 100,000 left in my mortgage (hypothetically) and can tear-down and rebuild for 400,000, then I owe 500,000 total. The kinds of homes I can get around here for that low are either townhomes, or very old, or both... (I don't know what my house is worth)
I appreciate any input!
2007-02-11 04:05:24 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In my opinion it is justified if you have a small mortgage and the price of construction is cheaper than purchasing another home. It most likely will. In my neighborhood brand new constructions range from 650k+. It costs about 250k to construct a new home (modular and you cannot tell the difference). So to put things in perspective if you have a 100k mortgage plus the costs of construction of 250k that would be a total of 350k for a brand new house. If new homes are selling for less than the costs of construction plus your mortgage amount then you should buy a new home, if it is less than you construct your own home. Do not get a construction loan from your bank; it is a complete headache with the money. You should get a home equity loan, line of credit or refinance and take cash out.
2007-02-11 05:00:54 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
If you read your mortgage contract you cannot legally tear down the home while you still owe on the mortgage. If the building is structurally sound there is no reason to tear it down, you can put on an addition.
2007-02-11 04:13:10 · answer #2 · answered by Mike M. 5 · 0⤊ 0⤋
it seems such as you're pleased with your lot and that looking yet another could be confusing. you be conscious of what they are asserting approximately region, region, region! so as that type of removes shifting & development sparkling. that leaves redesigning or tearing down and rebuilding on contemporary sight. appears like there could be quite some contemporary problems with contemporary abode. in simple terms via analyzing your question, i'm leaning in the direction of rebuilding on contemporary sight. i might get some contractor in to grant you some estimates and probable a house inspector. they are in a position that may additionally assist you come back to a call whether you will desire to redecorate or rebuild there. i might ask myself a million) do you intend on staying right here for an prolonged time? if so, then why don't you get precisely what you elect on your place. i think of you will desire to try this with the two redesigning or rebuilding. 2) do you like the present format of your place? or might you somewhat have significant differences made? 3) do you have babies to think of roughly? our final one is going to college this year and that differences issues lots. we are certainly interior the technique of merchandising our abode on the city the place we lived via fact it became handy with babies. we bought land interior the country and a development a sparkling abode. this could be our third abode in 21 years, and all of us be conscious of what we want, if there are some definate issues you elect on your place which you won't be able to get on your contemporary abode, i might rebuild. 4) if there are issues that would desire to be as much as date like electical, plumbing, and so on... ? which could be costly. this is the place a house inspector can help you to return to a call whether it could be greater particularly-priced to redecorate or rebuild. 5) in case you come back to a call to redecorate, are you able to get the greater area you elect via changing some issues around or will you like an addition? lower back, what's greater particularly-priced. i'm nonetheless leaning in the direction of rebuilding. one downfall to that's being "homeless" for the period of the rebuild. redesigning could be a messy, stressful technique (been there, executed that), although; you could actually stay there on a similar time because it is being executed. i'm getting long winded, yet there is a lot to think of roughly. i'm hoping i've got helped a sprint
2016-12-17 07:26:06 · answer #3 · answered by ? 4 · 0⤊ 0⤋