Homeowners are always looking to save money on their homes. Whether it’s by installing energy efficient appliances, making renovations that increase the value, or just turning lights off when they leave a room – it’s clear that we don’t want to spend a penny more on our homes than we have to. But what’s really the best way to save money on your home? It’s by simply staying in it, and fighting the temptation to shop around for another one just because interest rates are low and so you can afford a bigger one; and resisting the urge to go on a house hunt simply because you’re bored with the one you’ve got now. Believe it or not, that’s what a lot of Canadians are doing now, and they’re wasting a lot of money on it.
The Toronto-Dominion Bank has done two different surveys to show just how often we move. In 2010, the first survey was completed and it found that 16% of Canadian homeowners planned to move simply because they had grown tired of their home. That same survey was completed again in 2011 and that number had jumped to a whopping 42%. That’s almost half of homeowners that want to move simply because they’re bored with their homes! And a major mortgage broker channel, the Canadian Association of Accredited Mortgage Professionals, says that the average Canadian homeowner will own 4 – 5 homes in their life. That’s a lot, especially to renters who are having a hard time finding the money to own just one!
This shouldn’t be a problem. After all, homeowners should be able to buy and sell their homes as much as they want, right? But, if they want to save money, the best thing to do is figure out how much it would cost to renovate their home instead of putting it on the market. The fact is that buying and selling home after home adds up to a lot of money. On a $400,000 home, the National Post suggests, the costs would be upwards of $40,000 after you take into consideration things like realtor commissions, HST (for Ottawa mortgages and any others in Ontario and many other provinces,) legal fees, mover fees, cost of time off work, and of course, those ever-present closing costs.
Instead, homeowners that actually want to save money instead of always giving it away (and with 4 – 5 homes in their lifetime, they are indeed giving that money away,) homeowners need to sit down and figure out what it will actually cost them to buy and sell. They also need to look at the reasons for the move. Is it a job relocation? Have financial circumstances changed and you can no longer afford the home you’re living in? Have family circumstances changed, demanding a move be made? Those are all reasons where one may have to leave their home. But if you’re just getting bored with your home and looking for a change, sit down again and figure out how you can make those changes in your home. Can you redo the kitchen? Can you add on a room to accommodate a growing family?
The trend is often to just wash your hands of the old and move onto the new. But, if you’re willing to find out how you can make your current home work for you, it will save you money, and will most likely even increase the value of your home. And isn’t it better to add value, rather than always throwing those dollars away?
