Move or Remodel: 7 Factors to Consider
1. The size of your family has changed. The most common reason people move is because of the size of their current home. Many young couples have purchased a cozy two- or three-bedroom, 1,000-square foot home that suits their situation perfectly. The home has a master bedroom, a guest bedroom, and possibly a home office. A single living area with couches and an entertainment center provides the couple with ample space for the two of them and their visitors. As they start a family, the first child moves into the guest bedroom, and toys soon take over the living area. The perfect house for two becomes too small for three or more.
2. You want better schools. Unless your children attend private school, the location of your home usually dictates which schools your children will attend. This is great when it comes to building a sense of community, as children can walk or bike to school together. Having a school nearby can also cut down on travel time for dropping off and picking up your children.
3. Your commute is a killer. Many people choose to move because they have changed jobs. Be it out of state or in another community, most people will only commute so far. If you want to have a shorter commute, then moving may be your only answer.
4. You don't like remodeling. Remodeling is not for everyone. No matter how it’s accomplished, one thing is unavoidable: the inconvenience. It can be as little as not using your kitchen for a day while it is being painted or as much as moving out for six months while some major work is done. For some, any inconvenience is too much, so a move may be the way to go.
5. You don't like your neighborhood. Each neighborhood has its own characteristics. Some have big yards; some have small. Many have sidewalks and streetlights while others do not. Some neighborhoods have kids playing on the street all day long and friendly neighbors stopping by to chat every day. In other neighborhoods, people keep to themselves and rarely wave as they drive by each other on the way to work. As much as we all would like to change some features of our neighborhood, many are out of our control. If your neighborhood doesn't meet your needs, a move may be the only solution.
6. Your home has a bad floor plan. If you don’t like the layout of your home, then moving could be the right solution. If you’re seeking a kitchen in front and a family room that faces south, but your home has the kitchen in back and the family room facing north, a remodel may be too expensive to be practical. Due to lot size, building codes, or physical barriers, some homes may not lend themselves to remodeling the way you want. Building codes can limit the type and size of additions as well as their appearance.
7. Your yard leaves much to be desired. For many, the yard is an integral part of the house. A yard is land to call your own, whether it’s a place to plant flowers or vegetables, or an expanse of grass that you take pride in keeping green and manicured all summer long. The question is, how big of a yard do you want and is your current one adequate?
If you’d like to explore the topic further, you may want to consider the resource: Remodel or Move™. This independent organization was founded with the mission of empowering consumers to make the best “remodel versus move” decision. The information.
Q&A: Why is Bad News Good?
QUESTION: Why is bad economic news typically good for mortgages…and vice versa?
ANSWER: There's actually a pretty simple explanation for this seemingly strange phenomenon. But, you first need to understand a couple of important financial concepts: 1. Big money managers – who are always in search of higher returns – avoid holding onto cash. So they invest in both Stocks and Bonds.
2. Home loan rates are actually based on the performance of Mortgage Backed Securities (MBS), which are a type of Bond.
When we put those two facts together, we begin to understand the relationship between bad economic news and good home loan rates. Here’s why: Whenever the economy is on fire and there are good economic reports along with positive economic news, investors tend to put more money into Stocks. That’s because Stocks are more risky, but they generally offer higher returns. To do this, however, investors must remove some of their money from less-risky Bonds. This decreased demand in Bonds causes Bond prices to worsen, which causes home loan rates to rise.
Inversely, when the economy is sluggish and economic reports are negative, money managers tend to remove money from higher-risk Stocks and put it into less-risky Bonds. As the demand for Bonds increases, Bond pricing improves and home loan rates decrease.
The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.
As your Trusted Advisor, I always want to make sure you are clear on all details of the home financing process. If you or someone you know are interested in purchasing or refinancing a home, give me a call today!
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