We are currently revising our drawings for our cape cod here in BC. Every time I drive around town and see all this construction going on I wonder how people are affording it.
Can you help me get a sense of your numbers and how you worked out the financing? Also, what was your experience during the construction? Who did you use? Did you live in it for any part of the Reno?
For more detail: we have a 3/2 cape and we are looking to add 1 bedroom and bath overall. Expanding our kitchen on first floor as well and rearrange rooms on first floor.
TIA!
I just finished an addition on a split, going from 3/2 to 4/3. We were quoted $375k and ended up coming in a little under $400k.
We lived there the entire time (with a toddler!) and I work from home. It was hard - I had to work from libraries and coffee shops most days due to the noise. We also worked closely with the builder to ensure the least disruption to the toddlers room - so that while my husband and I were on an air mattress in the basement, the toddler stayed in his room unchanged. We did have to stay in a hotel for 4 nights during the floor staining due to smell.
This is probably not the most helpful answer, but we saved in order to afford this. Took us about 5 years to save up the cash using high interest savings accounts, making monthly deposits and putting any windfall (bonuses, gifts) toward it. We now have zero savings and working to build it back up. But this was a worthwhile investment for us to fit our growing family.
Can I ask how much your taxes were affected? Who did you use? Seems like they were willing to work with you and your situation which is awesome.
I work from home so that also isn’t an issue for me. Just need place to sleep for us and the kids so our basement is the way ti go.
The tax assessment hasn’t happened yet, so I have no idea. We are mentally prepared for the worst.
Used Built Tough out of Rutherford
Out of curiosity, knowing what you know now, would you still do it this way or use that 400 towards selling your house and buying a bigger house. Hard to fathom spending that much to add a 1/1
As you know, home prices in Bergen county are insane. To get the square footage plus land plus features in the town we are currently in, in a new purchase we would have been looking at at least a $1.5M buy. Prior to making this decision I spent a few months looking at inventory and everything I saw at that price point still needed work done (ie very dated kitchens/bathrooms).
So no, I wouldn’t have done anything differently. I have what feels like a new build home, with the layout I want AND it’s all in equity vs a new, bigger mortgage.
My thoughts are the same regarding this. As much as I’d hate to touch my mortgage to finance this it still makes more sense than moving for these reasons. We love our community and our backyard and moving anywhere else would still require us renovating and compromising in something.
Here are some resources for you to consider. Good luck! :)
Bergen County Home Improvement Program https://bergencountynj.gov/bergen-county-department-of-administration-finance/about-community-development/home-improvement-program/
USA.gov Government home repair assistance programs https://www.usa.gov/home-repair-programs
Generally people in Bergen county looking to add large footprint additions do not qualify for the those types of loans.
Common misconception. Many programs go by HUD and FHA guidelines https://entp.hud.gov/idapp/html/hicostlook.cfm
Not really
We are renovating a 4 br / 3 bath expanded cape. We started at 279k and now are at 307k due to some unforeseen structural issues with removing a wall that was initially not known to be load bearing and some change orders along the way (317k if you count the master closet we are doing with California Closets). We didn’t do any expanding but it’s a full gut with removing two load bearing walls, moving back walls, all new flooring, new roof, HVAC, plumbing and electrical, all new bathrooms and fully finishing the 1000 sq ft basement.
We are affording it through our savings. We are 42 and have always lived below our means so we’re able to save and invest money outside of our retirement accounts that has grown over the years. Unsure of our taxes going up much because we didn’t add square footage.
We are also living in our current house and will move into the renovated house once it’s finished, hopefully in February. We purchased the cape back in April.
We are expanding our kitchen to use the footprint of our enclosed back porch and also as our bedroom on 2nd floor so that is gonna add sq footage for us. Our home is small so need to be creative on how we use what’s available. I wish we had the savings. I can pull some from an old Ira I have and that will help significantly but not for the whole thing. Our mortgage is not gonna be cute. That’s for sure.
Following as we are looking to do the same. We want to make our walk-up attic into a primary suite but I don’t know where to start. I want it to be architecturally interesting and make sense, but not sure if this is too small of a job for an architect.
Normally, contractors want to see plans so you may want to consult with an architect and see what they’d advise based on your needs.
Are you adding on or just revising the interior?
I cannot answer your question about financing, but I did some research: 1) you will definitely need to live elsewhere during the renovation 2) your taxes will go up 3) I also have a cape cod, the only difference that it is 4/2, and reached out to one developer asking for an estimate on how much it may cost - their response was 350k-425k. Some developers helping with funding (the one I contacted as well, but I didn’t dig deeper) 4) the quality for that price was pretty mediocre
For me it was more like “want” than “need”, so after some thought process I decided to keep everything as is
You almost never want to take a loan from the builder as the stipulations are not remotely close to what a lending institute offers
This is definitely a NEED for us. The way things are now won’t work for much longer.
I currently pay approx $15k per year. A few years ago I converted a half bathroom into the full one, and my taxes went up $750 that year. And I used the space I already had. Although you are “just” adding 1 bedroom and 1 bathroom your town may (and most likely) will consider other improvements as well. I heard about stories when people had their taxes went up after they repaired their basements after flooding.
Try finding somebody from your town who recently did a similar project and ask them how it affected their taxes.
Heloc
I find HELOC is great for smaller jobs as the rates are variable. Definitely can’t use it for what I need.
I’m in the middle of renovating a 4/1 cap now. The house was in terrible condition and it made more sense tearing it down to the foundation and building a brand new house 4/3 on top of the existing foundation.
How did I finance this? I probably called every type of lender possible, from Renofi to credit unions and big banks to gain as much information I can so I can decide which best fits my build and financial status.
I ended up, going with one of the only banks in BC that offered a construction to perm loan. (closed last week). Basically they payed off my current mortgage and gave me an additional 600k for renovations. I’ll only pay interest on the amount I draw until construction is done. I paid $0 out of pocket.
DM me for more details, happy to guide you.
Just messaged. Also, where are you living during construction and who did you use?
Adding on like that is going to run you $300k at a minimum to start. Living in it is going to be hell.
Yeah I’m mentally prepared for that part. I guess I’m more curious with how folks are doing this. Financially and physically during the work
A lot of people have money to spend on these types of projects. Whether that’s inheritance, savings, or just a ton of disposable income. This is one of the richest counties in the entire nation, people have a lot more money than you think.
Refinancing with cash out option, a home equity loan, or approaching lenders for a loan. That or cash out of pocket.
You can live in the house during some parts of the renovation but builders aren’t fans of that for insurance reasons. But the bulk of it you’re going to need to find a short term rental.
With the amount contractors are charging for additions you're probably better off selling your house and buying a larger one.
One would think, right? But numbers don’t make sense for me and what’s out there right now
Also prepare for your property tax to double