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Renovating will probably cost you less than buying a new house, but expenses can quickly get out of hand

Renovating will probably cost you less than buying a new house, but expenses can quickly get out of hand

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“If you’re living in a semi and want a detached house, or are downsizing, that’s one thing,” he said. “But if you love where you live and like your neighbours, but need more livable space, it might make sense to do a reno and stay where you are.”

Renovating will probably cost you less than buying a new house, but expenses can quickly get out of hand

Sure, renos can be expensive, but Chaddah advises people to consider the amount they’ll spend on the land transfer taxes, realty fees and repairs necessary if they buy.

“When you add a second floor or finish a basement, you’re adding equity to your home and you’ll see the compound rate of return on that investment over time,” he said. “Moving expenses will never accrue value.”

Closing costs a killer

Benjy Katchen, chief executive of Wahi Inc., a recently launched digital real estate company targeting the Greater Toronto Area, said most people buying a house don’t understand the extent of their closing costs until 24 to 48 hours before the deal closes.