Off-Topic To renovate or not to renovate, that is the question.

[DoctorKrazey]

This question has been racking my brain for the better part of a year now, and I just wanted to get some opinions from the folks here. Little backdrop: House was built in 1990, is completely paid off, but is in serious need of updating/renovations. I have about 300k in savings so I could fully fund the renovation but I was planning on keeping that in savings so me and the wife could hopefully retire a few years sooner. I thought about selling the house “as is” and find something brand new of equal or lesser value to avoid all of those renovation headaches. Do I really want to deal with the headaches involved in moving all that stuff into a new home though? Another factor to take into account is I plan on leaving the house to the kids eventually so this would save them the hassle of having to renovate it themselves down the road. Lastly, I could just put a bandaid on the house and just do very minor fixes until we eventually leave it to the kids.

Just curious what everyone thinks and where do they stand on this issue. Thanks!

 

[NPBCANE4]

This question has been racking my brain for the better part of a year now, and I just wanted to get some opinions from the folks here. Little backdrop: House was built in 1990, is completely paid off, but is in serious need of updating/renovations. I have about 300k in savings so I could fully fund the renovation but I was planning on keeping that in savings so me and the wife could hopefully retire a few years sooner. I thought about selling the house “as is” and find something brand new of equal or lesser value to avoid all of those renovation headaches. Do I really want to deal with the headaches involved in moving all that stuff into a new home though? Another factor to take into account is I plan on leaving the house to the kids eventually so this would save them the hassle of having to renovate it themselves down the road. Lastly, I could just put a bandaid on the house and just do very minor fixes until we eventually leave it to the kids.

Just curious what everyone thinks and where do they stand on this issue. Thanks!

Congrats on house being paid off. I would say the decision comes down to quality of life you prefer. Youre in a great spot with the house being paid off and high amount of savings. Only move if you love the new location and house itself. How much renovating do you need? Roof, AC, Windows, Bathroom, Kitchen, Floors?

 

[JD08]

This question has been racking my brain for the better part of a year now, and I just wanted to get some opinions from the folks here. Little backdrop: House was built in 1990, is completely paid off, but is in serious need of updating/renovations. I have about 300k in savings so I could fully fund the renovation but I was planning on keeping that in savings so me and the wife could hopefully retire a few years sooner. I thought about selling the house “as is” and find something brand new of equal or lesser value to avoid all of those renovation headaches. Do I really want to deal with the headaches involved in moving all that stuff into a new home though? Another factor to take into account is I plan on leaving the house to the kids eventually so this would save them the hassle of having to renovate it themselves down the road. Lastly, I could just put a bandaid on the house and just do very minor fixes until we eventually leave it to the kids.

Just curious what everyone thinks and where do they stand on this issue. Thanks!

People seem more interested in cosmetic than practical. I've watched older CBS homes with new roofs and impact windows sell for less than stick houses with 18 yr old roofs and metal shutters simply because the kitchen and baths looked updated. I guess buyers from NY don't understand that the CBS home will out them a fraction of the other for hone insurance and the insurance companies will require a new roo every 20 years.

 

[90scane]

This question has been racking my brain for the better part of a year now, and I just wanted to get some opinions from the folks here. Little backdrop: House was built in 1990, is completely paid off, but is in serious need of updating/renovations. I have about 300k in savings so I could fully fund the renovation but I was planning on keeping that in savings so me and the wife could hopefully retire a few years sooner. I thought about selling the house “as is” and find something brand new of equal or lesser value to avoid all of those renovation headaches. Do I really want to deal with the headaches involved in moving all that stuff into a new home though? Another factor to take into account is I plan on leaving the house to the kids eventually so this would save them the hassle of having to renovate it themselves down the road. Lastly, I could just put a bandaid on the house and just do very minor fixes until we eventually leave it to the kids.

Just curious what everyone thinks and where do they stand on this issue. Thanks!

I’ve renovated around 85-90 houses in the last 10 years. Can you provide more details on the house and repairs needed?

 

[DoctorKrazey]

People seem more interested in cosmetic than practical. I've watched older CBS homes with new roofs and impact windows sell for less than stick houses with 18 yr old roofs and metal shutters simply because the kitchen and baths looked updated. I guess buyers from NY don't understand that the CBS home will out them a fraction of the other for hone insurance and the insurance companies will require a new roo every 20 years.

Yea, luckily I just got the roof done about 8-9 years ago, but I just got my property taxes in the mail the other day and they’ve gone up again! $3200 for the year now…it’s getting ridiculous.

 

[DoctorKrazey]

NBP & 90’scane: This house definitely needs quite a bit of work. I want to tear up all the carpet and put hardwood floors in throughout, the kitchen needs to be completely gutted, updated and redone, both bathrooms need to be redone, the back deck has some wood rot and needs to be replaced. According to my rough guesstimate, I’m thinking that I’m looking at AT LEAST a 100k renovation. It just stressing me out because one day I wake up feeling like I’m going to do it, but then the next day I’ve completely changed my mind. The idea of being able to retire a few years earlier just seems more appealing to me than a fancy house. Or, the third option is to do just the bare necessities(functionality over looks).

 

[JD08]

Yea, luckily I just got the roof done about 8-9 years ago, but I just got my property taxes in the mail the other day and they’ve gone up again! $3200 for the year now…it’s getting ridiculous.

I would have loved a $3200 property tax bill. You must not be in Palm Beach County.

 

[JD08]

NBP & 90’scane: This house definitely needs quite a bit of work. I want to tear up all the carpet and put hardwood floors in throughout, the kitchen needs to be completely gutted, updated and redone, both bathrooms need to be redone, the back deck has some wood rot and needs to be replaced. According to my rough guesstimate, I’m thinking that I’m looking at AT LEAST a 100k renovation. It just stressing me out because one day I wake up feeling like I’m going to do it, but then the next day I’ve completely changed my mind. The idea of being able to retire a few years earlier just seems more appealing to me than a fancy house. Or, the third option is to do just the bare necessities(functionality over looks).

I can tell you that style wins over substance there as well. People loved the remodel of my office with the off the shelf Lowes cabinets and countertop and said nothing about the solid maple cabinetry in the kitchen.

 

[rsa coral gables]

where is the house located.

do some comps in your area within 1/4 mile or 1/2 mile and see what houses are selling for new/renovated versus not new/not renovated. assuming everything else is +/- the same, you'll determine the premium for renovating the house. if that premium is substanitally more than that what that $300,000 is earning and you expect to be selling within a few years, go forward.

for example. in my neighborhood. new/renovated houses are at about $1100 a foot. it would cost me about $400 a foot to add a small addition that I would like. the $700 per foot gain is worth it.

 

[SpikeUM]

where is the house located.

do some comps in your area within 1/4 mile or 1/2 mile and see what houses are selling for new/renovated versus not new/not renovated. assuming everything else is +/- the same, you'll determine the premium for renovating the house. if that premium is substanitally more than that what that $300,000 is earning and you expect to be selling within a few years, go forward.

for example. in my neighborhood. new/renovated houses are at about $1100 a foot. it would cost me about $400 a foot to add a small addition that I would like. the $700 per foot gain is worth it.

I agree purely financially, BUT if @DoctorKrazey is leaving the house to his kids anyway, a better idea might be to only do the necessary repairs (the kids can do what they want when they inherit the property) and invest the cash for growth.

p.s. also review tilting on your property to avoid probate, ESPECIALLY if you are Dade County.

 

[JD08]

I agree purely financially, BUT if @DoctorKrazey is leaving the house to his kids anyway, a better idea might be to only do the necessary repairs (the kids can do what they want when they inherit the property) and invest the cash for growth.

p.s. also review tilting on your property to avoid probate, ESPECIALLY if you are Dade County.

A Ladybird deed is cheap insurance.

 

[rsa coral gables]

A Ladybird deed is cheap insurance.

100% benefits, zero downside

 

[rsa coral gables]

I agree purely financially, BUT if @DoctorKrazey is leaving the house to his kids anyway, a better idea might be to only do the necessary repairs (the kids can do what they want when they inherit the property) and invest the cash for growth.

p.s. also review tilting on your property to avoid probate, ESPECIALLY if you are Dade County.

given that he's going to be using the proceeds from the sale of the house to retire early, it doesn't seem anyone is going to be inheriting it

 

[Okefenokee Cane]

$1100 a foot!

Dang sun I’d pay $1,100 an inch but fer sumthin else. Heeee haawww!

 

[JD08]

Dang sun I’d pay $1,100 an inch but fer sumthin else. Heeee haawww!

 

[UMFarArcher]

This question has been racking my brain for the better part of a year now, and I just wanted to get some opinions from the folks here. Little backdrop: House was built in 1990, is completely paid off, but is in serious need of updating/renovations. I have about 300k in savings so I could fully fund the renovation but I was planning on keeping that in savings so me and the wife could hopefully retire a few years sooner. I thought about selling the house “as is” and find something brand new of equal or lesser value to avoid all of those renovation headaches. Do I really want to deal with the headaches involved in moving all that stuff into a new home though? Another factor to take into account is I plan on leaving the house to the kids eventually so this would save them the hassle of having to renovate it themselves down the road. Lastly, I could just put a bandaid on the house and just do very minor fixes until we eventually leave it to the kids.

Just curious what everyone thinks and where do they stand on this issue. Thanks!

I started remodeling our house six months ago, and the wife and I did most of the work ourselves - and I'm not a builder/skilled carpenter/painter - but I took it one room at a time with the exception of the floors - ripped out all the carpet and replaced with some vinyl plank flooring - and I just hired an installer that worked for flooring companies and saved a bunch of money.

Some upgrades are necessary, but sometimes you can just cleanup, alter, or improve existing parts of the structure without the expense of replacing them.

Retirement funding is important. A hunnit grand for a remodel - that's some money!

Rainy days - they come sometimes when least expected. Maybe you can find a way to scale back the costs and still significantly upgrade at least the appearance.

 

[GladeCane]

Based on your parameters, i'd renovate over time, starting with what bugs you the most. This way you get to enjoy, the fruits of your labor, and then don't saddle your kids with a nightmare.