Before making a choice between adding on to an existing home or buying a larger one, consider these questions: 

• How much money is available, either from cash reserves or through a home improvement loan, to remodel your current house? 
• How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level? 
• What do local zoning and building ordinances permit? 
• How much equity already exists in the property? 
• Are there affordable properties for sale that would satisfy your changing housing needs?