Pros of relocating
Purchase a new investment
Selling your current home and purchasing a new one can be a great opportunity to upgrade your portfolio if you’ve got equity on your side. If your home is now worth more than what you owe, it may be a good time to sell. You’ll want to have enough equity to pay off your mortgage, cover your closing costs, pay moving expenses, and put down a new (possibly more expensive) down payment.
Or maybe your current investment is no longer affordable, and you are looking to downsize. If so, you’re not alone. A study found that 53% of Americans have struggled to make housing payments and been forced to make trade-offs to make ends meet. Downsizing can help alleviate financial strains and let you kick outstanding debts to the curb.
Gain a new perspective
Are you feeling stuck or complacent in your current home? Sometimes the grass really is greener on a new lawn. A change of perspective could be an exciting opportunity to expand your horizons and improve your mental health and wellbeing (once the stress of moving subsides.)
Jot down a list of things you like and don’t like about your current neighborhood, so when you do start looking at new houses you can be mindful of amenities you’ll enjoy.
Avoid the stress of renovations
Moving allows you to get a house that fits the needs of your lifestyle or growing family without requiring you to live in a construction zone. For some, that’s reason enough to start packing up the boxes and saying your neighborhood goodbyes. With the average renovation in the U.S. costing $46,503 and the average gut and remodel a whopping $150,000, moving could save you a headache — and save your wallet.
Cons of relocating
Pay for moving costs
While selling your home helps build equity and can improve your investment portfolio, it isn’t free by any means. There are tons of selling and moving costs to consider on top of the cost of the new house you will ultimately purchase. Hiring movers, home inspection costs, real estate commission, and home repairs are just some of the expenses you could face once you put your home on the market.
Add stress to your search
Six out of 10 people find moving to be the most stressful life event — beating out divorce or a break up. You should take this added stress into consideration if you’re still on the fence about moving. Do you have work or family obligations that need your attention first? Could you juggle the stress of moving along with other upcoming life events? If not, it may be a good idea to delay the move and consider a remodel instead.
Compromise or spend more time looking
Just because you want to move out of your current home doesn’t mean it’s going to be easy to find a new one that meets all of your standards. It can be incredibly difficult to find a house that is in a desired location that also fits your budget and needs.