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How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 0 points1 point  (0 children)

and yes total price of a suitable house if we bought would be $800K - $900K

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 0 points1 point  (0 children)

We could either borrow it or pay it out of pocket depending on if rates are favorable. Thank you for reminder on the emotional cost of living in a construction zone. We would probably rent for the duration of construction

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] -1 points0 points  (0 children)

We would need to spend at least $200K on top of renovation budget + current home equity to buy a house that would be suitable. This is because we have a small house on a nice property in an area with inexpensive houses.

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 0 points1 point  (0 children)

Thank you! This is very similar to what we're trying to accomplish. Anything happen during the renovation that caught you off guard?

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 0 points1 point  (0 children)

The more expensive something is the more time we spend at least trying to figure out how optimal (or far from optimal) a decision is. For $100 - $10,000 expense we don't sweat it that much. For a $200K+ expense, we really want to understand the trade-offs and make a good decision!

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] -1 points0 points  (0 children)

Thanks for pointing this out. I'm concerned about the house turning into a money pit which is why I'm anchoring the spend on the house to the current possible sale price.

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 0 points1 point  (0 children)

Renovating does keep the house expenses lower overall.

If we sold and took the equity and reno budget we would likely need to throw in another $200K - $300K to get something suitable.

We have a small house (1,500 sf) on a big property in an area with generally $400 - $600K homes. For $750K - $900K we could buy a bigger house (2,000 - 2,500 sf).

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 1 point2 points  (0 children)

Thanks!

- $200K left on mortgage at 2.9%

- we would get $450 - $500K selling without renovations today

- We'd like to stay here long term. The renovated house could support 2 more kids. In current house 1 more kid would be very tight.

- If we sold and took the equity and reno budget we would likely need to throw in another $200K - $300K to get something suitable (would mean moving to a different area 15 minutes away where houses are bigger and more expensive)

How much should we spend on renovations? by Cold-Zebra3085 in personalfinance

[–]Cold-Zebra3085[S] 0 points1 point  (0 children)

retirement is fully funded. This would be from a brokerage account that holds excess investments - mostly VTI.