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How to Turn a Bungalow into a Modern Two-Story Home with an Income Suite: 2026 Case Study
A real (or hypothetical, portfolio-based) case study covering costs, timeline, property value increase, and rental income.
Don't Relocate. Renovate!
Quick Article Facts
Published
February 14, 2025
Reading Time
3 minutes
Views
1677 readers
Updated: February 14, 2025
Read: 3 minutes
Author: WellCore Corporation
Renovate or Relocate? Find your answer with Wellcore.
Renovate or Relocate? Find your answer with Wellcore.
Your small bungalow has become too cold in winter with foundation cracks and foggy windows. However, its value has doubled over the years. Should you relocate to a bigger home north of Bloor with a master bedroom and chef’s kitchen?
Or, should you upgrade your current home while staying in a great neighborhood with top schools and a close-knit community?
How much will the RELOCATE option cost you?
| Item | Cost |
|---|---|
| Selling price of your old bungalow | $1,000,000 |
| Less existing mortgage payoff | -$350,000 |
| Less 5% realtor commission on sale | -$50,000 |
| Cash on hand for downpayment | $600,000 |
| Purchasing price of new home | $1,500,000 |
| Closing cost (4%) | $60,000 |
| Total cost of the new property | $1,560,000 |
To buy a new house, you need to borrow $960,000, including $110,000 in selling and buying costs. You will live in a $1.5 million home with $540,000 in equity.
How much will the RENOVATE option cost you?
| Item | Cost |
|---|---|
| The square footage of your new house | 2,700 |
| Average price per sq.ft. | $280 |
| Total construction cost | $756,000 |
| Add existing mortgage | $350,000 |
| Total cost of rebuilt house | $1,106,000 |
| Market value of rebuilt house | $2,500,000 |
To rebuild your house, you must borrow an additional $756,000 on top of your existing mortgage loan. You will be living in a $2.5 million home with $1,394,000 in equity while keeping your kids in the same school and maintaining your daily routine.
Contact Wellcore to explore how you can transform your bungalow into the home of your dreams.
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