Dilemma - upgrade house or build extension
We bought SFH in good school district ( Milpitas) before pandemic. The house is 3 bed / 2 bath configuration with 6000 sqft lot. We have one kid and plan to have one more. With WFH/hybrid , we feel we need more space as current does won’t suffice. Should we upgrade to bigger house or add extension to our current one which will add 1 bed and 1 bath easily to it. Cost would be same for both down payment for new house vs extension to existing close to 300-350k. The new house budget is 1.7 m max with current interest rates however we both are little hesitant to take on more debt with new house especially with upcoming childcare costs. Little bit about ourselves- Age - both mid 30s HHTC- 600k NW- 1.5 mil ( includes current house equity)
Going through an upgrade/remodel process always takes longer than planned and adds a lot of stress to your life. Just move to a bigger place.
I'd wait a couple of years and then move. Infants don't need their own room or bathroom, Shove them in with the other kid for now and keep saving up. Prices are going to plummet with all the layoffs going on.
ADU might be a better fit vs a remodel Simply because it'd have less impact on the home while you live in it.... Assumptions being your lot and city even allow it
I believe you have low mortgage interest rate. Wont that matter if you upgrade?
Add adu if it makes you never want to sell atleast 7-10 years . Else sell and move
If you bought in the neighborhood because you like it, I’d try to extend. Remodeling is time consuming but you get a custom home that suits your needs if you plan to stay long term and raise kids there. To me that would be worth it. Each to his own tho…
In a cookie cutter suburban development like Milpitas, it’s unlikely you’ll even get an extension past permitting. That area is pretty clamped down with floor-area ratios and it’s unlikely your house could support a second floor unless you already have one.
Have seen lot of neignbirs sound addition to house during pandemic so permit won’t be an issue and not adding second floor to house either