Redecorate or Move to a new home...That is the Question

Redecorate or Move….That is the question

The last 18 months have been a long and trying time for buyers. Recently, the American Institute of Architects has released their AIA Home Design Trends Survey results that reveal what many people are looking to buy in 2021: 

-A house with an open floor plan or layout instead of closed off rooms such as bedrooms

80% of respondents want at least three different types of rooms in their home, including an office and/or yoga area. Additionally, 46 percent preferred multiple functions for each room so they can be versatile enough to host guests or accommodate changing needs on the fly - like having dinner party one evening while hosting friends over with family another time;

  If you're looking to get any of the above, there are two options: renovate your current home or buy one that has what you want. The decision will depend on factors like location and cost-revision versus purchase price as well as if an existing property would work better than designing from scratch (depending on layout).

 In either case, you'll need access to capital: the funds for renovation or down payment on your next home. Luckily the money is probably already in your current house as equity!

 In the last two years, home prices have gone up again and homeowners are seeing their equity increase. This time around though it's more than just appreciation that has improved- interest rates on mortgages remain low so buyers can take advantage of these record highs while still getting loans with affordable payments! The graph below shows how much money you would've made betting against real estate back in 2006: 
 
 

Odeta Kushi, Deputy Chief Economist at First American,quantifies the amount of equity homeowners gained recently:

“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

Homeowners should tap into their equity as soon as possible because the longer you wait, the higher cost it will be. You may need to refinance or take out an equity loan and that could add up in fees if your current rate isn't great already!
 
There are two options for homeowners who want access to money from investing some of these assets: mortgages on homes which they own outright with no mortgage insurance requirement; or tapping into what’s available through refinancing old loans at lower interest rates plus adding additional funds by taking out new ones again not only cash-strapped but also riskier investments since house prices might fall anytime after you make them - so consider wisely before diving right in.
The best way to keep your mortgage rates low is by doing it now. A cash-out refinance or buy more expensive home without significantly increasing monthly payments can help you get back on track with the changing economy and still afford car payment, student loans etcetera.
 
Next, you'll need to find out how much equity is left in your home. This will help determine if it's time for a redesign or an upgrade with new construction projects!  To do that, you’ll need two things:
 
  1. The current mortgage balance on your home
  2. The current value of your home
It's easy to find the balance of your monthly mortgage payment, but how do you know what it should be worth? If this is a question for which there isn't an answer right away or in any near future then keep reading. A professional appraisal will cost between $100-$500 depending upon size and location; however if none are available locally than contacting someone like myself can present one at no charge!
 
Bottom Line
If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home.
 
  

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