Perhaps, The Clash posed this question the best “Should I stay or should I go (now).” While that song is about a band member leaving, it’s also an excellent question for homeowners.  If you live in Winnipeg and own a home chances are this question has popped into your mind – should I move or complete a home renovation for my Winnipeg home?

Either option can seem exciting, and of course, the grass is always greener – but any option involving real estate comes with significant risk. Your home, after all, is your number one investment, not to mention things like providing shelter, comfort, and security. Sometimes, the urge to move to a new neighbourhood, area, or street outweighs the effort and costs involved. Or, if you love your location, it can be in your best interest to stay put. In any situation, financial implications are also a significant consideration.

Get ready to explore whether it might be in your best interest to move or complete a home renovation in Winnipeg!

How can a home renovation company help me to decide whether to move or not?

In this article, we hope to help you weigh some pros and cons of moving versus renovating. As you very well know, we are a home renovation company, but we are going to take an unbiased approach and hopefully pass some sage advice and wisdom along the way.

We have also seen thousands of Winnipeg home interiors and exteriors – and happen to know a thing or two about Winnipeg homes. And, sometimes it’s not just about moving or renovating, but the best scenario for you.  It can be to move and then renovate your new home, or renovate your existing home before you move. 

In this article, we’ll explore moving versus a home renovation from the perspective of a 15-year homeowner. We also play out two scenario price points – purchase prices 15 years ago of $250k and $400k. While your situation may fall somewhere outside of either of these scenarios, you can still use the concepts to help you decide what is better for you. Specifically, we will take a look at:

  • Walkthrough some reasons you might consider moving to a new (to you) home in Winnipeg
  • Cover why you might rather stay in your current location and complete a home renovation in Winnipeg
  • Then, we’ll dig into our 15-year homeowner situation and explore the two different purchase price scenarios

Disclaimer: before we continue, note that the figures presented in this article are for illustrative purposes only. While they may resemble real-life situations that the majority of our clients face, the information should not dissuade or replace seeking professional opinions from a realtor, financial advisor, mortgage broker, or lawyer.

However, if you read this article, and it resonates with you, know that Hammerdown does everything within its power – from a home renovation standpoint – to help our clients look after their #1 investment – which is your Winnipeg home.

And, with a lot to cover, let’s get started discussing whether it’s better to move or renovate your Winnipeg home!

A moving truck in Winnipeg resting on a driveway in front of a new home complex

What are some of the reasons you might want to move to a new home in Winnipeg?

While these are only some of the reasons you might be choosing to move to a new (to you) home in Winnipeg, they are frequently at the top of the list. It also should be noted that there are several options for your next home – most commonly we hear of individuals either building a new home with a home builder or buying another previously lived-in home. If you are moving to an older home, you might still need to complete a home renovation so you have your needs met. Be aware of this as you look to move on.

You’ve outgrown your home

Sometimes, even with a home renovation or remodel where we look to remove walls and use the space you have more efficiently, it’ll never be enough. If your family has grown significantly or other living arrangements have changed, it can be best to move, depending on your needs in a home.

You want to downsize your home

Alternately, perhaps your children have left and you’ve become empty nesters. If your home is too much space, downsizing can be an option for you. As well, other complications like a two-storey home can make for accessibility issues as we age. However, before you do decide to sell, consider reaching out to us to talk about an accessible aging-in-place renovation for your home.

You dislike the location of your home

If this is the case, there can be no convincing you to stay! As they say in real estate, location is everything. That’s because you can’t easily change the location of a property. In situations where you’ve fallen out of love with your location, it’s best to move on a buy new in a location that you enjoy.

Lifestyle changes, including being closer to loved ones

Life happens. Whether looking to be closer to loved ones or needing to move because of other family events, such as divorce, a move may be necessary as a way to improve the outcome of your given situation.

Simply want a change of scenery

If this is your reason for moving, then perhaps, giving your home’s interior a change of scenery would be enough. If you’re content with nearly everything else about your home situation, it might be worth revisiting your plan to move. See if a backyard makeover, a new exterior, or a fresh interior design might put your home into a different perspective.

A Winnipeg home for sale with a large sign in the front yard with the words "For Sale"

What sort of additional costs should I budget for or consider when moving?

As you may have guessed, selling and moving is an expensive proposition. We outline and help predict the additional costs of moving later on in this article. Be aware that when you move, you’re likely to face the following costs and fees:

  • The realtor fee for when you sell your existing home. In most situations, the realtor fee is paid by the seller and typically, each realtor on each end of the deal split the fee 50/50. The going rate for realtor fees in Winnipeg is 6%. So, while you might not see this fee when you purchase your new home, it will impact your profit when you sell your current home. However, in some rare situations, your realtor may also require a fee from the buyer as well. It’s important to find out before you proceed.
  • Staging, professional photography or video, and other preparation as you put your home for resale – which can change from realtor to realtor. Always ask questions before you proceed with a real estate agent as to what’s included in their fee and what you are expected to pay out of pocket.
  • Moving fees, if you move with professional movers – while you can save some money by doing it yourself with a couple of buddies, your back and your friends will thank you for hiring movers.
  • Miscellaneous costs such as legal fees, land transfer tax, early mortgage discharge penalties, etc. – it’s best to have some cash set aside and earmarked for the unexpected fees that come with selling, buying, and then moving. We listed some of the most common miscellaneous expenses but you could also have home inspection fees, appraisal costs, etc. Most professionals advise you should roughly budget 2% of your home’s value for these fees.

Why might you rather stay and choose to instead complete a home renovation in Winnipeg?

So, if you are going to try and love your home, but still don’t enjoy parts of it a complete home renovation in Winnipeg might be what you’re needing. Some of the top reasons to stay and renovate usually are

An established Winnipeg neighbourhood with beautiful and unique home elevations that showcase character and mature trees

You love your neighbourhood or neighbours

Location and the community you’re surrounded by can play a massive role in your and your family’s life. It can even mean that you put up with a home that you’re not entirely happy with for years. But at some point, we hope you choose to invest in a home renovation, and your happiness.

Avoid changing schools

If you have children already enrolled in school, moving can be a burden for them. Having to make new friends, meet new teachers, and create a new routine can feel overwhelming at times. This can also be true for other things like sports teams or community centers.

Familiarity and routine

Moving will cause disruption. If you or your family love routine, perhaps adjusting to a new routine isn’t something that appeals to you. Keep in mind, that your routine will also likely change if you’re completing a home renovation, but once the project is complete, things can out back to how they were.

Avoid the unknowns of a new home

As you’ve grown comfortable with your home, you likely have a good sense of what sort of repairs or issues you might have in the future. When you move, you’re starting with a blank page. Even with preventative measures like a home inspection, you never know what might be beneath the walls or when things like your furnace will go.

Increase the value of your home

As you’ll find out later in this article, staying put and completing a home renovation is one of the best ways to help build home equity. While it’s very much dependent on the renovation you’re completing, and the quality of the work, a home renovation does come with a return on investment (or ROI).

You simply love your home!

If you’ve been in your home for any number of years, it might have sentimental value that you just don’t want to give up. Whether you’ve put down roots in a neighbourhood or created many family memories in your home, a renovation could give you the freedom to fix your aging home, without leaving the memories behind.

What additional costs should I budget for or consider when completing a home renovation in Winnipeg?

There are a lot of moving parts to any home renovation project. Things like planning and budgeting, interior design, selecting finishes and materials, demolition, pulling and obtaining permits, upgrading electrical or plumbing, and, of course, the actual construction renovation work.

The good news is if you choose to work with Hammerdown, we take you through a fully guided renovation design-build process that will never leave you guessing. What can feel like a stressful situation becomes fun as you interact with our fantastic team of home renovation professionals – from estimation, and interior design, to renovation project coordination, all the way to the final walkthrough. 

So, in short, the answer is – there are no additional costs – you hire us, we help you budget for your home renovation, and then we complete the work. Get ready to be impressed with our holistic, integrated team approach to your design-build home renovation!

With some of the common reasons for moving or renovating, along with costs you should consider before deciding on one or the other, it’s now time to jump in and look at some numbers as we walk you through a scenario for renovating versus moving.

Should I move or complete a home renovation if I owned my home for 15 years?

Our scenario will take a look at the costs to move versus completing a home renovation if you’ve lived in your home for 15 years. There is a strong number of our clients that fit within this category – they’ve lived in their home for 15 years without a major renovation or longer.

Typically, the home that they’ve lived in was their second home purchase, after their starter home. It’s where they’ve raised their families and created memories. And, while those have value, we are going to look at the decision from a strictly financial point of view. As well, we will dissect this decision at two different home values and two different home renovation budget investment points.

Your Winnipeg home’s purchase price – $250k when you purchased it 15 years ago

  • We will estimate your home value increase by 40% by $100,000 for a total value of $350,000
  • Downpayment at time of purchase at $50k, making your mortgage starting at $200k with 30-year amortization – roughly leaving $100k left owing
  • You would be able to easily reinvest in your home by refinancing your mortgage with a renovation budget of $100k

Looking at your $100k home renovation budget as a reinvestment for your existing home

With a $100,000 home renovation reinvestment budget, in most situations, we should be able to tackle most of the main floor, including a new kitchen, and in some homes, a bathroom or ensuite bathroom renovation.

A beautiful kitchen renovation that is equally functional, part of a home renovation in Winnipeg, completed earlier this year

Based on the type of home renovations that fit within the $100k budget, we estimate your home renovation ROI to be roughly 80%.

  • So, this means your home’s value after home renovation ROI gained with a $100,000 home renovation will be estimated at $430,000
  • And this also means the total owing on your home with your refinanced mortgage that includes the home renovation cost is $200,000
  • This transaction will result in your home equity being an estimated $230,000

Moving after living in your home for 15 years

  • Selling your home based on today’s value of $350,000 will gross you $250,000 as you will need to pay your mortgage lender the $100k you still owe
  • Then, you’ll need to cover realtor costs (6%) of $21,000, moving costs (.5%) of $1,750, and miscellaneous costs (2%) of $7,000
  • After expenses and fees, you’ll be left with $220,250

Purchasing your next home 

Of course, once you sell your home, you will still need somewhere to live. For this article, we are going to assume your next home needs to be of at least equal value.

  • We also will assume you want to have a 20% downpayment to avoid additional home purchase expenses and fees. Your downpayment needed is $70,000
  • After you find your new home, you will need a mortgage for $280,000
  • This leaves you with the remaining cash after mortgaging your new home with $150,250 – which is great.

Let’s assume you apply the cash to your mortgage

  • You’ll end up owing $130,250 your home will be worth $350k
  • You’ll have $219,750 in estimated home equity, which is close to but still less than if you didn’t move

However, there is a likely chance that your new home may not have all of the things on your wish list, thus requiring a home renovation after you move.

Looking at your $100k home renovation budget for your newly moved-in home

  • After your $100k renovation, your home will be worth $430k
  • We will apply your leftover cash to your home renovation budget first, so you will have $50,250 after the renovation and sale
  • And, you’ll still have a mortgage of $280,000 – if you apply your remaining cash to your mortgage you’ll reduce it to $229,750
  • This transaction will result in your estimated home equity of $200,250 –  which is lower than if you did not move and only renovated

We will now take a look at a similar transaction but at a higher value.

Your Winnipeg home’s purchase price – $400k when you purchased it 15 years ago

  • We will estimate your home value increase by 50% by $200,000 for a total value of $600,000
  • Downpayment at time of purchase at $80k, making your mortgage starting at $320k with 30-year amortization – roughly leaving $160k left owing
  • You would be able to easily reinvest in your home by refinancing your mortgage with a renovation budget of $150k

Looking at your $150k home renovation budget as a reinvestment for your existing home

With a $150,000 home renovation reinvestment budget we can work on a whole home renovation to truly transform your home. In most situations, we should be able to tackle most of the main floor, including a kitchen renovation, an ensuite bathroom renovation, and likely additional bathrooms.

An elegant, showcase kitchen renovation with beautiful cabinetry that offers amazing storage, custom herringbone pattern tiles, and a large island with sink part of a home renovation in Winnipeg

Based on the type of home renovations that fit within the $150k budget, we estimate your home renovation ROI to be roughly 90%.

  • So, this means your home’s value after home renovation ROI gained with a $135,000 home renovation will be estimated at $735,000
  • And this also means the total owing on your home with your refinanced mortgage that includes the home renovation cost is $310,000
  • This transaction will result in your home equity being an estimated $425,000

Moving after living in your home for 15 years

  • Selling your home based on today’s value of $600,000 will gross you $440,000 as you will need to pay your mortgage lender the $160k you still owe
  • Then, you’ll need to cover realtor costs (6%) of $36,000, moving costs (.5%) of $3,000, and miscellaneous costs (2%) of $12,000
  • After expenses and fees, you’ll be left with $389,000

Purchasing your next home 

Of course, once you sell your home, you will still need somewhere to live. For this article, we are going to assume your next home needs to be of at least equal value.

  • We also will assume you want to have a 20% downpayment to avoid additional home purchase expenses and fees. Your downpayment needed is $120,000
  • After you find your new home, you will need a mortgage for $480,000
  • This leaves you with the remaining cash after mortgaging your new home of $269,000 – which is fantastic

Let’s assume you apply the cash to your mortgage

  • You’ll end up owing $211,000 your home will be worth $600k
  • You’ll have $389,000 in estimated home equity, which is a sizeable drop considering all you did was move

However, there is a likely chance that your new home may not have all of the things on your wish list, thus requiring a home renovation after you move.

A stylishly crafted ensuite bathroom renovation with a large, walk-in, glass-enclosed shower that is custom tiled all part of a home renovation in Winnipeg for one of our many clients

Looking at your $150k home renovation budget for your newly moved-in home

  • After your $150k renovation, your home will be worth $735k
  • We will take your remaining cash and apply it to your home renovation budget so, you’ll have $119,000 in cash leftover from your renovation and sale
  • And, you’ll still have a mortgage of $480,000 – if you apply your remaining cash to your mortgage you’ll reduce it to $361,000
  • This transaction will result in your estimated home equity of $374,000 –  which is $50,000 less than simply just renovating your current home

Which option is better for me financially – moving or renovating my home?

Based on what we’ve compiled in this article, whether you move or move and then renovate, staying in your current home and renovating without moving paints a better financial picture for your future. However, this isn’t to say that net worth and home equity is the only factor in the decision. As we outlined above, there are numerous reasons to go or stay put. Which option is best for your family ultimately comes down to your needs and lifestyle.

We can’t stress enough, when it comes to your home, work with professionals – mortgage brokers, financial planners, realtors, home inspectors, and appraisers alike. That also includes working with professionals when it comes to completing home renovations! A certified MHBA master renovator can produce quality work and craftsmanship that can help you achieve values like 80-90% home renovation ROI. Leaving it to anyone else can put your #1 investment – your Winnipeg home – at risk, and we’d hate to see that happen.

We can help with your home renovation in Winnipeg!

As we also mentioned in this article about completing a home renovation in Winnipeg versus moving, if you choose us to renovate your home – you’ll get the work done with confidence, as quality and integrity are built into what we do. Our fully-equipped staff takes the stress away as we guide you effortlessly through your entire renovation. 

Our entire home renovation process is with the customer in mind – our interior designers and design-build team are incredibly knowledgeable – to help make this as fun and smooth a project as possible.

Contact us to get started on your home renovation in Winnipeg by booking your consultation meeting on our website.