u/Accomplished-Ear6646

Renovate/addition vs Buy — numbers favor renovating but want a sanity check
• $650K home, $275K mortgage at 3.25% with 14 years left
• $600K addition (350K cash + 250K HELOC) → ~$1M post-reno
• Alternative: buy at $1.2M, 50% down, 6.5% 30yr mortgage
Every time horizon I model (10/15/20/30 yrs) favors renovating. The 3.25% vs 6.5% rate gap seems to be the dominant factor. Am I missing something that flips the calculus toward buying?
Going from 1,700 sqft to 3,000. Houses in the 1.2M price range still need work (don’t have the same great amenities of proposed reno like new kitchen and upgraded mechanicals)