Nitin Puri

The lack of space often leads people to buy a bigger home for their family. However, renovating the existing home might be a better and, more importantly, economically wiser alternative.

The choice between buying a bigger home and renovating your existing home can be tough. You must assess the pros and cons of both choices and your own requirements to arrive at the correct decision. Remember that there are many things to be considered and reviewed such as market situation, quality of lifestyle as well as financial feasibility.

Leena Bajaj, Promoter and CEO, Umang Homes, Navi Mumbai says, “The number of years of the building construction plays an important role in deciding whether to buy a new home or renovate the existing home. A new home would be replete with modern amenities and necessities. However, if the existing home can have a cost-effective renovation, one should go for it.”

Although renovating your existing home may sound boring to some people, it is clearly the more economical choice out of the two options, say experts. Here are some key parameters that can help you make a wise decision:

Know thy requirements: The first thing is to understand your own requirements. Is it only more space you are seeking or do you want a modern-looking home with state-of-the-art amenities? At times, remodelling the house with initiatives such as a modular kitchen, stylish bathroom or a simple whitewash and new wallpaper can do wonders. However, if there is a lot of space that you need or you anticipate the need for more rooms in near future, seeking a new home is the better choice. Again, it is advisable to look for a new home in case of seepage problem in the current home, says Bajaj.
Calculate your finances: The next criteria, of course, is your budget. An extensive renovation can cost about Rs 5-7 lakh. This can include things like remodelling the kitchen, buying a new sofa and doing new flooring. On the other hand, if you have a higher budget of about Rs 40-60 lakh, buying a new, bigger home could well be on your mind. You must remember, however, that buying and selling a property would also involve commissions, taxes and the headache of moving all belongings from one place to the other.
Analyse the market: Buying a new home can be advantageous at a time when the property prices are coming down. In slow market conditions, buyers also stand a chance of negotiating prices with sellers. The reduction in home loan interest rates is also beneficial for buyers. In such circumstances, buying a new home can be considered.
Study the location: Staying in the current location could prove to be advantageous if the area’s civic and social infrastructure are in place. Talk to real estate brokers and study price trends in the area in last few years. Do you foresee a hint of price appreciation? If yes, stay put. Again, if the present location has good connectivity or infrastructure projects are in the pipeline, remodelling the house might be a better idea.
Understand the time required: Renovating a home is a long, time-consuming process. A remodelling assignment can last for three to six months depending on the kind of changes planned. With dust flying in all corners of the house, labourers moving in and out and constant sound of tools and machines, it could be a testing period for the family members.

While there could be a number of other factors to consider in addition to the above, your requirements and finances are the two factors that matter most. An honest review of your own requirements should help you make a wise choice between buying and renovating.