If you’ve been a homeowner for more than a decade or so, you’ve likely faced the prospect of running out of space in your home at one point in time. Maybe a new addition to the family caused the walls to close in just a little? Perhaps you’ve begun to accumulate more things than you have space for? Maybe your tastes for space have grown and now you’re feeling cramped?
Whatever the case may be, facing a space shortage generally means one of two things: buying a bigger home or looking into home additions in Jackson, MS. Both sides have their pros and cons, but depending on your situation, there’s usually a pretty clear answer one way or the other.
If you find yourself seriously considering a home addition as a way to alleviate your space constraints, it’s important to realize that there’s actually a golden rule to making a sound decision in favor of an addition. It goes a little something like this:
Take the current value of your home plus the cost of a new home addition and compare it to the cost of another home of the same size and style—take note of which overall cost is more.
Next, take the cost of your home addition divided by the number of months left on your home’s mortgage, then add that number to your monthly mortgage payment—compare that number to the prospective mortgage of a new home of the same size and style and take note of which expense is higher.
Finally, take into account the property tax of your current home with the estimated addition of a home addition factored in and compare it to the property taxes of a similarly sized home of the same style—take note of which is more costly.
Once you’ve calculated out the three parts of the rule above, it’s time to see where you fall in terms of the rule. Take a look at your options:
- If, out of the three calculations, the lower cost fell on the side of your existing home with an addition two or more times, it means an addition is a more affordable option for you currently.
- If, out of the three calculations, the lower cost fell on the side of a new home of the same size and style two or more times, it means that a home addition might not be as cost effective as moving to a new home.
But, while this might be a good rule for determining the overall financial aspect of a new home addition in Jackson, MS, it certainly doesn’t account for the metal aspects of it. Are you prepared to stay living in the same house for as many years as it takes to pay off your addition? Do you have stake in your location that might deter you from moving to a new home? It’s these questions and more that will ultimately make your decision for you.
Remember, home additions are split between cost and desire—like many aspects of home improvement—make sure you consider all facets equally and make your decision based on fact, not just convenience.