When Cathie Hurlburt and her husband were contemplating whether to renovate their home or buy something bigger toaccommodate their growing family, the Vancouver certified financial planner“did the math 90 times”. The result favoured renovating every time.
The cost to move can be exorbitant, especially in pricey markets like Vancouver and Toronto. By the time realtor commissions (typically 7 per cent on the first $100,000 and 2-3 per cent on the balance of the purchase price in B.C.) property-transfer taxes, legal fees, and moving expenses are factored in, you’re easily looking at $50,000 in costs. That’s not including any potential mortgage penalties.
“You might as well be rolling up 20s and lighting them on fire,” says Hurlburt, a partner at Integrated Planning Group. “And I have not had a client move into a new house and not drop another $5,000 on something: a new fridge or new carpeting or new towel racks or — ‘the car doesn’t actually fit in the garage.’”
Renovating is an optionRead More »from Renovating vs. moving: It's a numbers game