I'm a first-time home buyer in the Boston area and I'm evaluating two homes priced around $1 million. I have about $460k in cash saved up. The first home is in a fantastic location but needs a significant renovation—possibly a gut renovation—which I estimate might cost around $100-200k. Do you think that's a realistic budget? The second home is in a decent location and is move-in ready but would likely cost an additional $100-200k due to market competition. I'm leaning towards the first home since I'd prefer to be in a more desirable area. I'm considering putting down $300k and spending around $160k on renovations. I could use some advice here—am I being too optimistic?
2 Answers
I’d definitely go for the house in the better location! Remember, you can always change the house, but you can't change its location. Maybe tackle the renovations gradually instead of all at once. Best of luck!
Given the Boston market, your renovation budget seems a bit low. Gut renos can easily end up costing twice what you're estimating. Just a heads up! You'll likely need around $300k minimum depending on several factors. It's tough to get solid estimates without more details, but it’s better to be safe than sorry!
Exactly! $100k might cover a kitchen gut, but anything major like structural changes will skyrocket your costs.
Totally agree! Just be prepared for the renovation costs; they can stack up quickly, especially if you're not doing the work yourself.