It can be challenging to decide whether to buy or renovate a house in Ontario, with the cost of buying a new house sitting above $450,000.
With the way the current price of buying a house is steadily increasing, renovation may be a better idea. With home renovation, you can make changes that’ll leave your house looking incredible, thereby increasing its value.
This article contains tips and information that’ll help you decide if it’s better to buy a new house or renovate it. We’ll also explore whether it’s advisable to buy a house in Ontario due to the current market conditions.
Let’s get right into it!
Is it Cheaper to Buy or Renovate a House in Ontario?
The major determinant for deciding whether to buy or renovate a house is the cost factor. See below for how much it costs to buy a house or to renovate one in Ontario.
Cost of Buying a House in Ontario
In Canada, the cost of buying a house in British Columbia (B.C) and Ontario is higher than the national average. So, with the average cost of buying a home in Canada at $531,000, you may be paying a little higher to buy a house in Ontario.
House Renovation Cost in Ontario
Sometimes, renovating your house may be all you need to discard the thought of buying a new one. Renovating your house puts it back in good shape and makes it more appealing.
Home renovation may either be cosmetic or structural. Cosmetic renovation involves rearranging/ redesigning, flooring, repainting and discarding unnecessary items to give your house a finer look.
A structural renovation has to do with making physical alterations to the structure of your house. For instance, loft conversion, redesigning the entire floor plan, and roof changing are all structural renovations.
A recent study shows that homeowners in Ontario may spend about $13,600 on average for home renovations. In addition, returning your house to a good state involves the purchase of materials and labour charges. Therefore, there may be some hidden charges or miscellaneous expenses.
When you consider the cost of both home improvement options, it’s cheaper to renovate your house. The margin between the cost of renovation and buying a new house is wide.
Renovation vs. Buying a New House: Factors to Consider
Deciding whether to buy or renovate a new house can be very confusing. But if you calmly consider the factors below, you can make a better decision.
When contemplating if you’re to renovate or buy a new house, consider the building’s location. Houses in strategic or advantageous locations have added advantages.
If, for instance, your house is close to the city centre or your place of work, renovation may be a better idea. Unless you have something important taking you out of that area, there’s no need to buy a new house. Instead, you can renovate the house to your taste by adding some contemporary and fancy designs.
An important question you can ask yourself when deciding if you’re to buy or renovate a house is your budget. Your budget is the real deciding factor.
You may want to buy a new house and furnish it with the best furniture. But if you don’t have enough money, you may not actualize it.
So when trying to decide whether to renovate or buy a new house, compare prices. If you stay in a city with expensive homes (like Ontario), renovation is more budget-friendly.
Sometimes, renovation can be quite costly due to the structural changes you intend to make. For instance, renovating your house will cost less if you’re not changing the floor plan.
Depending on the volume or intensity of renovation and the cost, you may feel like it’s better to buy a new house. But, recent updates in home improvement and renovation technology mean contractors can add more value to your home without overhauling the floor plan. This will save you thousands of dollars and makes home renovation the ideal option.
Renovating your house is good, but you need to know if it’ll add to the value of your property. Some renovations add value to the house, while others may be an unwise investment. So, before renovating your house, you may want to seek the advice of home renovators in Ontario to know if it’s worth it.
The best home renovation contractors in Ontario can suggest additions that’ll increase the value of your home. They have the expertise to blend value, functionality and personal preferences. In this case, you can consider home renovations an investment that’ll come good in the future.
If you don’t have plans to stay in a house for an extended time frame, there’s no need to renovate it. For instance, if you’re single, chances are, you’ll move to a bigger house when you get married. Also, the number of kids you plan to have may require an even bigger house.
But, if you feel your current house is okay and suits your plans, then renovation is your best bet. Even if you’re staying alone, consider renovating the house with a contemporary design or touch. It’ll make you appreciate the house better.
You need to compare the mortgage of your current property and the new house you wish to buy. Depending on market positions, you may get the same mortgage plan or lower.
Before you decide whether to buy or renovate a house, seek the counsel of a real estate professional. Realtors will give you options and help you decide on the best deal.
Related Article: Is it Worth Renovating a House?
Is Now a Good Time to Buy a House?
The Canadian residential housing market is going through a period of change due to the introduction of foreign index taxes. With Ontario having one of the most expensive housing markets, now may not be the best time to buy a house.
Another reason you may not want to buy a house in Canada is that it’s an illiquid investment. Many Canadian homeowners take pride in how much equity they have in their homes. Making the final mortgage plan may be incredible, but home equity isn’t a substantial asset.
Recent news also shows the housing market in Canada is unstable. Buying a house now may not be a good idea until the market is stable again.
Why Renovating Your House is a Better Option
Unless you have strong reasons, renovating your house is a better idea than buying a new one. Here’s why:
Enhance the Value of your Property
Home renovators in Ontario can help you renovate your house and make it look more aesthetic and valuable as well. One way you can boost the value of your home when renovating is to upgrade the fixtures in the kitchen, improve the basement’s functionality and upgrade the bathroom.
Reduce Energy Costs
You can seize the opportunity when renovating your house to cut down your electricity bills. You can reduce energy bills by changing the light bulbs and upgrading your appliances.
You can liaise with the home renovator to consider wall insulation in the basement for temperature control. These minute changes can result in lower energy tariffs, causing you to save more in the long run.
Adds More Space
When renovating your house, you can increase the space by working on the basement or adding a new room. You can rent out a recently renovated basement for more income after enlarging the space.
Home renovation contractors in Ontario can help you with the best ways to add space to your house. You can also suggest rooms that need expansion and hear what the contractor has to say.
Change the Existing Pattern or Structure of your House
Home renovation helps you upgrade the pattern of your house if you feel it isn’t modern enough. You can make structural changes to the building by breaking down and rebuilding some parts to give your house a new look.
Talk to the home renovator to help you with other not-so-expensive modern structural upgrades you can add to your house. For example, changing the structure or roofing of your home to a more recent design can increase its value.
Make your House Look Stylish
During home renovation, you can seize the opportunity to make your house look stylish. You can improve the aesthetics of your home by designing it with modern household appliances and fittings.
Renovation is a chance to rebrand your house. And, there are many contemporary bathrooms and kitchen designs you can install in your house to give it a modern look.
Designing your house may not be the primary job of home renovators, but they can give you one or two helpful tips. When you think about the different designs you can give to your house, it’ll help you decide if you’re to move or stay in your home.
Same Place, New Feel
Renovating your house helps you retain the same space you’re already fond of, but with a new and better twist. In addition, renovation helps you to stay in touch with special memories in the house.
Most people don’t like relocating because of the fear of acclimatizing to the new space. But retaining your house will help you keep that personal touch with your space in better conditions.
Costs Lesser than Buying a New House
Houses tend to need renovation after a long while. Whenever a house starts losing integrity, the debate of whether to buy a new house or renovate it comes up. With money being one of the most important factors, renovation is a cheaper option.
When renovating, you can install whatever designs, furniture, and fitting you wish to see in a new house. Renovating your house offers you almost the same features as buying a new one, only that it’s the same space.
Related Article: How Kitchen Renovations Increase the Value of Your Home
The debate of whether to buy or renovate a house can be very tough at times. But renovating your house is a great way to save money. Home renovation is the cost-effective option to make your home look great while maintaining the same space.
But you need to hire home renovators in Ontario to give you the best renovation designs and packages available. Here at Basement Finishing Company, we can give you the best value for money.
Contact us today to learn more about how we can upgrade your current house to the home of your dreams — at the best value!