Should I stay or should I go?
In my previous article we took a look at the question ?Should I buy a property or should I rent a property?? We came to the conclusion that to rent a property is far easier as there are no risks involved and to find that house to rent might also be easier. To buy a property on the other hand becomes risky as it affects every aspect of your financial situation but if you have done your homework buying a property will enhanced your investment portfolio.
You may tell me that you are already a home owner but that you are unhappy with your current house and would like to ask me, ?What now?? In your case we need to take a closer look at the question ?Should I buy or should I go?? Your answer on this question will also have a risk factor attached to it so it is important to way up all options before you give your answer.
We all need changes in life also homeowners. You wake up one morning, look around you and all of a sudden our house looks dull. You see the cracks in the wall that you wanted to fix so many times. You see the paint peeling from the bathroom ceiling, the kitchen looks old-fashioned, the house just feels too small and you find many reasons for selling your house and to buy a new one.
The first reason might be location. You want to be closer to the office. You want to be closer to a school for the sake of your children. You might even want to move because you want to be closer to a parent.
The second reason might be that ?nice to have?. You think about the new house your friend has just bought, the one with the double garage, the swimming pool and the entertainment area, just to name a few and you now want the same and even better.
And the third reason is the financial reason. You now came to the realization that with that yearly increase in remuneration you can now afford a bigger and better house.
What ever your reason might be for wanting to buy a new house you must think carefully because of the risk factor. Ask yourself the question what was the reason for the buying the house in the first place. Was it for the location or was it for that ?nice to have?? Once you have your answer you now need to explore the housing market and answer on the next question. Can I find another house with the same features in a better area at the same price?
If your answer is no and you are happy with your location and the reason for buying the house in the first place you will find out that it is easy to turn your existing house into that dream house you've always wanted. Put those changes into action by fixing those cracks in the wall, by painting that ceiling in the bathroom, by turning that old kitchen into a fashionable kitchen and lastly by adding that new room if your house is too small. You might even find that you have enough money available to build that swimming pool and add that entertainment area.
If your answer is yes it is back to the drawing board. Take a good look at your financial situation, start planning, speak to an advisor and reassessed your asset allocation.
You and you only know how your feel about your house, your neighborhood, your financial situation and the changes that you are willing to make. If you still love your house, love the area that it is in, you think you may have a sound investment and you hate drastic changes in your life your answer is to ?stay?. Look at remodeling your house.
If you are tired of your house, feels that by remodeling your house won't get the return that you would like on your investment your answer is to ?go?. You may have to consider looking at buying a new house in an area that you are comfortable with, that suits your needs and that fits your pocket.
My advice to all homeowners is to trust their gut feeling!
The editor
Pat Jewell
www.cyberprop.com
