Should I stay or should I go now?

One of the most frequently asked questions I am asked, is the feasibility of staying and renovating or moving into a new house, office or space.

The answer is based on many factors which include:

• Present and long term use
• Usability of the space in its new vs present configuration
• Cost, not just construction cost , but moving, additional utilities, taxes, location-transportation, insurance, etc
• Appearance
• Maintenance requirements
• Regulations (i.e. do zoning regulations allow you do what you are intending to do)
• Gut instinct and advice from neutral sources who you respect

Many customers rely too heavily on the cost paradigm and fail to look ahead as to the use. Will they consider working from home? What is the likelihood of a long term guest, maybe an aging parent staying with them? Are the costs of moving to a more affordable location, actually taking any extra 45 minutes to get to?

The cost rule of thumb I’ve found to work this way:

Construction cost commercial fitout @ $50-100/sf, carefully examine your lease and whatever “buildout allowances” are being provided by the Landlord. Remember to include possible parking, weekend utility fees, related maintenance provisions etc.

Construction cost for residential @ $150/sf for heavy renovation to $300/sf new wood frame construction in Weschester County. In NYC this can easily be double depending on the level of finish and complexity. So yes it can be quite expensive…..but consider…

In lower Westchester county, given a good town with good schools and a sub-60 minute commute to NYC, the cost per square foot for buying is roughly $400-500/sf.

Rule of thumb your taxes will go up approximately $2500 per hundred thousand of improvement.

So do the math, take a deep breath and try to imagine where you want to be in 5 years. Good luck.

Please feel free to call me to discuss your specific situation 914 674 2950.