0

Long story short - we got our dream lot at a very affordable price in an otherwise unaffordable area (it is the most desired in our city due to the large lots and wooded areas) - but the house is unlivable.

We have two options (we consulted many professionals):

-Renovate about half of the home for $350k and then live in a half finished home for a year or more before starting to finish the rest (total renovations needed are quoted at $700k).

-Continue to pay both mortgages for awhile (current residence and new house/lot) - which we can do comfortably due to the very reasonable price - and then tear it down and build a new home for about $450k.

Obviously a new build is a scary thought but so is the thought of dumping that much money into this house for renovations and still have many restrictions (the ceilings are too low, the layout is restrictive, there’s a lot of unused land so we don’t have the amount of space we’d like).

Has anyone ever faced something like this before? Any advice?

Note: This is a live in for 20+ years home for us, if not forever.

Len
  • 1

1 Answers1

5

This is simple math except for some unanswered questions here. Why spend 700K on reno when you can tear down and build new for 450K and get exactly what you want? ( New is going to hold valve longer as well)

UNLESS!

The mortgage on the newly purchased property has a call clause that would make the note due if you tear down the old house. Perhaps talk to the lender and reveal your intentions and ask for an amendment to the mortgage to rebuild. They may even convert the loan to a construction/ perm for you and save you some costs.

RMDman
  • 52,615
  • 3
  • 36
  • 113