With this economy what do you think is the best thing to do?
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My husband and I own a 3 bed/1 bath home and are of course outgrowing it. I work from home, so one of our rooms is an office and then we have a 3-year-old little girl and are TTC our second.
Our mortgage is really affordable and the house itself and the neighborhood are great.
We are wondering if it’s smart to just renovate this one to add on another bedroom and bathroom or if it would be smarter to go buy a larger home?
I’m not sure the steps to take to determine which is best for us either. Do we get some quotes for the renovation and see what it would cost?
I know in my area a larger home will be over 300k whereas our current home we only owe 100k on.
I can’t imagine it would cost 200k to convert our garage into a second bedroom, add a bathroom, and then add a carport?Angie
I put my office space (desk) in the master bedroom. I would prefer it not be there but with 3 kids at home I wasnt trying to buy a 5 bedroom house. With the way interest rates are I would stay put and make it work.Holly
The financial security of having a smaller home with a smaller mortgage is priceless to us. My husband was able to leave his job bc his mental health was suffering and we were absolutely fine for 3 months while he found a new job. It was absolutely priceless to have that flexibility.
Our home is 1300ish sq feet and we have completely remodeled it over the span of 15yrs. The peace our home brings us is just so wonderful.
But you have to do what works for you guys.Julie
Sounds like you are where I am! I’m in Texas too. We have a 3/2 and I have 3 kids and my mom that lives with me. If we sold this one we’d be looking at 350-400K so 2 girls share a room and the 3rd is with us in our room. We’ve decided to start saving money (new to this) and in maybe 4-5 years look into converting our garage into a master or adding a bedroom to the backyard!Jessica
In most places, converting a garage and adding a carport will devalue your home. Is there anywhere else you can add on and not lose out on the garage? We got quoted (about a year ago now) to add on a 600sq ft room to the back of our house, just a room, with basic electrical and heat (no kitchen, no bathroom) and it was around $90,000.
I would also take into account though how much your interest rate will increase. That’s the number one reason we are staying put right now, because we have a 2% interest rateLauren
I’d add a separate wired outbuilding as an office and just add a bathroom to existing house. Even a half bath might be enough.Emily
I would wait it out and stay put. You said you are TTC, so you still have at least 10 months until the baby is born and then a few more months after that when the baby will be in your room, if you do that. If that is the route you take, realistically it will be a year and a half at the least before you need to worry about a room for the baby and your work situation could be completely different by then.
We are a family of 4 (2 year old and 3 year old) living in a 2/1, 1,000 square feet. I find keeping our belongings down really helps to feel like we haven’t outgrown our space. I can’t even imagine trying to buy something right now as crazy as the market is around us.Melissa
Instead of converting the garage, you could put a temporary wall dividing out in half and move your office into the inside half, still use the outside half for bikes etc. Then you have another bedroom free but no construction and you don’t lose the garage. And add on a bathroom.Sofia
I would get the renovations estimate. Then do your research on how much equity you would make from selling your house and then check what your mortgage payment would be on the potential new house. Then compare and write a pros and cons list.Damara
My house is also 3b 1ba. It lacks in space but we keeps things minimal. It’s perfect for me, husband and step daughter. Less to clean, more time to be together.
Long time ago myself, my ex and my (now grown) son lived in a bigger house. We all had our separate corners and kinda grew apart. Everyone did their own thing. Took forever to clean and maintain. Not to mention utilities. Plus the “need to fill every corner “Lacey
Definitely get estimates before deciding anything. I honestly think that renovation could run you pretty high. You’ve got to think material, plumbing, electrical, opening up the space, adding on a foundation, etc. Just my opinion though.Sarah
I can relate. I have a 2 bed plus loft townhouse currently and it’s me, my son, I’m ttc, homeschool, and run a business from home.
Other than wanting additional space, do you otherwise like the house/area?
Could you currently afford the renovation or increased cost of buying a different house?
Yes interest rates are high, but I wouldn’t focus too much on that right now if you can afford it in the budget, you could refinance at a lower rate in the future.
Do you have outdoor space to add an option to act as the office, or insulate the garage more and use that as an office temporarily.
Overall, I honestly wouldn’t make any major changes right now. Ttc means that the baby isn’t here yet, just an idea. Plus you would have 9 months of pregnancy and then the baby wouldn’t need its own space for at least another year, if not two, you could easily get by with having a crib in your room, giving time to reassess and find the best option during that time.