Is Renovation Better Than Relocation?

Check your budget

You have to keep aside all your emotions and have to think of the practical side, before buying a house. Before shifting a house, you need to plan your financial spreadsheet systematically. Shifting from one house to another needs ready cash. You need to calculate the total cost to bridge the gap between your old house and the new one.

Alternatively, you have to think about the other expenses also. Other expenses include, house renovation before putting it up for sale and you may have to spend huge money in renovation. Then for new house, there are expenses like property registration that will cost you around 10 percent of the total property value, setting up a new electric meter, stamp duty and so on.

According to Ramesh Nair, managing director (West), Jones Lang LaSalle India, "Since most homes are bought through home loans, lenders prefer if you also take an insurance policy to cover the loan. This means having to pay the premium for the policy," reports Economic Times.

"Maintenance charge and annual property tax are some of the costs that most buyers do not factor in prior to a purchase. In a new high-end construction, a lot of facilities, such as swimming pools, gymnasium and landscaped garden, involve a one-time additional cost," added Nair.

House renovation not only gives your house an attractive look, but also adds value to it. But, you can choose renovation only when you can manage your finances well. This means, remodeling a house can be more expensive than investing in a new project.

Also Read: Wealthy Indians Prefer to Buy Home Overseas