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Updated almost 14 years ago on . Most recent reply
Deal analysis
I'm contemplating purchasing a new home because I'd like to have a finished basement and a pool. To add this to my current home would cost about 100k. I'm afraid though that my equity will take a beating because these features don't seem to return even half the investment. The house I'm looking at has both these features, bigger and nicer. How do I analyze this deal so that I don't lose much equity. Current house - 610k value- 410k purchase. 40k closing costs. New house 740k. Improvements needed 35k. Appraisal 775k. No financing required. What is the right calculation to make in assessing this to maximize equity?