Renovating or purchasing a new house? Which one is better?
I think this is one of the most important topics for me to write about. I have been thinking about purchasing a new house for a few months. I recently completed one of the personal loans that I took for my marriage. I became debt free but looks like I have to do some investments to make sure I have some decent assets with me when I retire. Purchasing a house can be a very good option but still, I already have a house that is inheriting to me from my grandfather to my father and from my father to me.
I have this confusion if I should be renovating my existing house or purchasing a new house as an investment. There are a few things that came to my mind when I thought about renovating the existing house. The cost of renovation is almost the same as purchasing a new house. Some people suggest that it is good to purchase a new house. Probably if not an individual house, a flat. The reason is that if I renovate, I would be spending a lot of money but at the end of the day, I would still have only one house with me.
But otherwise, if I just spend a small amount of money on renovating the existing house and purchase a new house somewhere else, it would become an additional asset for me and I would start generating additional income from another source. This is one of the biggest reasons people suggest purchasing a new asset instead of spending money on the existing house. The current house where we are living is giving us lots of problems. Especially because it is getting old the main reason why I have to immediately spend money on renovation is that every year it is giving challenges and during the rainy season it is getting hard to manage.
If you read this article and when you see that I'm talking back and forth, you would have guessed that I'm still having confusion as to which one would be the best route to go. I want to spend money on our land and create a better house for our living. If I go and purchase a new flat, I would not be able to renovate the existing home and I cannot even earn anything from the current house.
Finally, I will mostly decide and purchase a new asset and at the same time, I would also allocate some funds to do a small renovation to the existing house. This way later when I have more money I can focus on rebuilding the existing house and I would also have another house with me that would be generating some income. I'm glad that we at least have one house with us and I see my friends struggling to take decisions on purchasing their first asset. I'm at least glad that I'm inheriting property from my grandfather.
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