Professionals Real Estate 
Many families eventually reach the point where they have to make a big decision regarding the future of where they are going to live. They have to determine whether they should renovate their home to bring it up to meeting their current and future living needs. Or, should they look for something else to buy instead?
This is a decision that cannot be made lightly because each of them has their advantages and disadvantages.
The renovation decision:
The value that is going to be increased in the home as a result of the renovation really has to be thought of. You need to determine what the value of your home is now, what it would be after the renovation, and then how this will compare to the future in the housing market.
It is easy to get caught up in modernisation when it comes to renovations. It is also easy to go beyond what it will bring you back in market value. This is over-capitalisation where your forecast of the value of the renovation supersedes the actual market value that the renovation creates for your home. Often people are under the misconception that no matter what they spend or do with their renovation they are going to get this expenditure back and more.
You have to give thought not only for the now but the future as well. A move means uprooting your family, and there will be a lot of deciding factors as to whether a renovation would better suit their needs now, and as your family grows. Things like changing schools, and having to make new friends are big priorities with the children.
You will have to take a really good look at your current home as to its renovation potential. It may not be in the prime condition that you think it is. You can utilize the services of home inspectors to help you determine if there are any underlying problems that you may as yet not be aware of.
The cost factor of a renovation can be a little more difficult to determine than a purchase of another home is. All too often people doing renovations soon find that their original budget is blown because of last minute changes either in the construction or the materials being used. There are a lot of factors that have to be considered when costing out a renovation.
The buying decision:
If you do your research and your timing is right then you may have the opportunity to have a new home built at the right price, and just at a time before there is an escalation in housing prices.
Beware of over-building. You may find the perfect location cost wise for the build of your new home, but if this new building doesn’t fit in with the market value of the rest of the neighborhood then you stand to take a big hit when you come to sell it. Do your homework and see what the evaluation stands at for the existing homes in the area, then compare this with the cost and end value of what your new home will be.
While you have to consider the potential negative effects a move could have on the kids, you also have to consider the potential benefits the move would make. Perhaps the new area is closer to amenities and better educational opportunities.
There can still be some substantial cost changes that take place with a new house build, but usually there is a building contract that affords some protection against additional costs.
The decision to renovate, buy an existing home or have a new home built are all big decisions and should be well thought out and carefully planned for.
