For these reasons, housing decisions require plenty of careful consideration.
1. Should you build or buy?
Both building a new home or buying an existing one can be good choices. You’ll typically pay more for a new home, but it will likely need fewer repairs and have lower maintenance costs.
Existing homes, on the other hand, are usually cheaper upfront. They may come with more issues and potential repairs, though.
2. Is it better to move or to remodel?
There will typically come a time when you outgrow your first house. When this happens, you’ll need to decide whether updating (or expanding) that property is best or if you’re better off finding a new home instead.
Renovating will come with some hassle and mess, but if you love your location or your kids’ schools, it can be a smart choice. Buying a new property would allow you to change some of those foundational aspects — things like location, school district and community amenities.
3. Is it time to downsize?
As you age and your kids move out, you might consider a smaller house. Downsizing can reduce your monthly costs, free up cash flow and reduce the amount of cleaning and maintenance you need to do.
On the other hand, it may be hard to part with your long-standing home — both for you and your grown children. You’ll also want to think about things like your budget, long-term retirement plans, physical comfort and more.