How much of your income (%) regardless of savings rate would you spend for a house renovation?
We are moving into a house but it needs to be remodeled. Finally no more rent and no mortgage

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If you’re financing the reno, you need to figure out the same cash flow question as if it were move in ready. I don’t think it’s necessary to figure out renovation cost as a percentage of income on its own. If you can answer what’s the monthly costs post renovation once you roll your construction loan into your final mortgage, you’ll have your answer.

Your question is really no different than if you asked ‘what percentage of your income would you spend on a house?’

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I’m doing major renovations. I added the renovation cost to the house cost to stay in a range I felt comfortable with. Like pwc1 said, I look at it more as monthly payments added to the mortgage (though I’m paying in cash). Then, I also consider if the renovations will add to the sale value or if I’m doing it for preference. Consider it an investment if it’s something I’d get back in a sale versus a cost if it’s for me only.

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Thank you 2, that really sounds best!

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