One of the questions I hear most often, whether I am working with someone relocating to the Island or a client rightsizing into their next chapter, is whether to buy the home that is already done or the one with good bones and room to make it your own. It is rarely a simple answer, and the right choice depends as much on your finances as it does on the house itself.
This month's Mortgage Minute is from my trusted mortgage partner, Paul Macara. Paul works with my clients to make sure the numbers behind a purchase actually support the life they are planning, and his take on this question is one of the clearest I have read. I will let him take it from here.
(Article by Paul Macara, Mortgage Agent)
Every home search eventually runs into the same question:
Do you pay more for the house that already has the dream kitchen, finished basement, and updated bathrooms? Or do you buy the one that needs some work and make it your own over time?
It can be a harder decision than it first appears.
A move-in-ready home may come with fewer surprises, but it can also mean stretching your budget closer to its limit. A home that needs renovations may offer more room to customize, but the costs, timelines, and disruption can be difficult to predict.
The Appeal of a Move-In-Ready Home
For many buyers, the appeal of a finished home is certainty.
You know more about what you're getting. You may avoid months of renovation projects, contractor meetings, and unexpected delays. There's also less pressure to start spending money immediately after closing.
That certainty can be especially valuable for busy professionals, growing families, or anyone who simply wants to unpack and enjoy their new home.
The financial side still deserves careful thought, however. A higher purchase price can mean a larger mortgage payment, higher property taxes, and less room in the budget for furniture, emergencies, travel, or future life goals.
Where Renovations Can Make Sense
A home that needs work can be an opportunity, particularly if it's in a great location or the improvements can be completed gradually.
It may allow you to enter the market at a lower price point, build equity through improvements, and create a home that truly reflects your style and needs.
Renovations work best when the costs are realistic and there is enough flexibility in the budget to handle surprises. Timelines can stretch, materials and labour can cost more than expected, and not every improvement adds dollar-for-dollar value.
Buyers also need to think carefully about how the work will be funded, whether through savings, a line of credit, refinancing later, or a mortgage option that allows for improvements.
Compare the Full Cost, Not Just the Purchase Price
Before making an offer, it's worth comparing both paths clearly: the cost of buying a more finished home versus the cost of buying a lower-priced home and completing the work needed.
That comparison should include more than the purchase price.
Monthly payments
Available cash after closing
Renovation costs
Financing options
Future flexibility
A home that needs work can be a fantastic opportunity, but only if the numbers still leave you comfortable after closing.
The best house isn't always the one that looks perfect on day one, it's the one that fits your financial goals and lifestyle for years to come.
If you are contemplating a purchase or renovation, let's review your full financial picture and connect you with any professionals needed to make the best decision for your personal situation.
Thank you, Paul, for such a clear and practical look at a question so many of my clients wrestle with. Connect with him here: Paul Macara, Mortgage Agent (250) 857-4741 paul@macaramortgages.com macaramortgages.com
Whether you are drawn to a home that is ready on day one or one you can shape into your own over time, the right answer starts with understanding both the numbers and the neighbourhood. That is where I come in. If you are thinking about a move anywhere in Greater Victoria, the Saanich Peninsula, Sidney, or the Westshore, I would love to help you weigh your options and find the home that truly fits your next chapter. Reach out anytime for a no pressure conversation about what is possible.
Jacqueline Ross, REALTOR®
Your Van Isle Home
call/text: 250-415-5656
jac@yourvanislehome.com
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