One of the main reasons to stay is location. In many areas of Toronto real estate has reached an all-time high and buyers are no longer able to afford moving into certain communities. If your home is in such a community and you really want to stay in the neighborhood you currently live in, then upgrading is probably your best bet. However, updating your current dwelling will also depend on whether you have the room to expand or not. If you have the room, then expanding your home or renovating it to suit today’s standards is a very logical move. If you don’t have the room to expand, but all you want is an updated space, then renovations will not only improve your quality of life but will also add value to your home.
Another reason to renovate vs buy new is a lack of choice in comparable neighbourhoods. If you are unable to find a residence you like in another neighbourhood at a price point you can afford, then it is worth staying put and renovating until something presents itself. At that point your home will be worth more and you will actually be able to afford a new dwelling more easily.
Sometimes renovating your home will give you more equity in it and provide you the extra funds.
Reasons to move would include a severe lack of space and no opportunity to expand on your existing plot of land, finding a good investment in an up-and-coming neighbourhood or wanting to experience a new community that is closer to your workspot or the lifestyle activities you would like to engage in.
Regardless of what you decide, the decision is never easy but will almost always result in a higher net worth – as long as you have weighed your options properly and thought-through all the variables.
