Renovating vs building: the pros and cons
Sometimes it gets to a point when the house you’re living in no longer meets your growing family’s needs and you need to upsize, or you might be simply looking to upgrade.
If this is the case, many families choose to build or renovate rather than buy a new property because you can custom design to suit your family.
But deciding whether to start from scratch or make renovations to your current home can be daunting.
Before you start knocking down walls, you should consider the pros and cons of each.
Renovating
Pros
1. You can pick and choose what stays and what goes
If it’s not broken don’t fix it. The best part about renovating is that you can keep the aspects of the home that you love.
If you live in an older character home, you can keep the high ceilings and wooden floorboards if you choose to, as these features are generally not seen in modern builds anymore. Sometimes historical value should be admired and preserved, especially if it’s what makes your a home a home.
You can save a lot of money by keeping what you love and making smaller extensions or upgrades to the things that need it.
2. Add value to your property
If you live in a sought-after location, any upgrades to the property will only increase its value meaning you could potentially sell the property at a profit to what you originally bought it for.
But of course, many things come into play here, like how much you spend on the renovations and how the property market is performing when it comes time to sell. To be safe, you should contact your local RE/MAX agent who can give you insight into the value of your property.
3. You get to stay in a location you know and love
If you are familiar with your suburb, have children going to the local school or love your local café strip, it can be hard to switch suburbs.
Especially with the limited blocks of land available, which can potentially be in Perth’s outer suburbs rather than the area you are used to living in.
That’s why many choose to renovate instead building on a new block of land.
However, choosing to knock down your current house and build on top of it is also another solution if you decide to build from scratch.
Cons
1. More costly
Sometimes, renovating might cost more than starting from scratch depending on the extent of the renovations.
You need to ask yourself if the renovations will be enough to achieve your ideal home and will it achieve good resale value. Rebuilding a brand-new home in an established suburb is ideal. So, it just depends on your budget, your goals and resources.
2. Interference of the construction
If you have a family and decide to renovate, turning parts of your home into a construction site for a few months can be annoying.
Some people choose to move out somewhere short-term while they rebuild their new home.
However, for people who are more involved with the renovations it can be a thrill and quite a rewarding experience to the work in progress unfold.
3. Original layout of the house
This goes for if you are renovating or building on the same block of land. You need to first identify any structural compliances that come with your property.
It might turn out that you can’t have a pipeline there or add in a swimming pool. Each council will have different rules, so make sure to check them before you start planning.
If your land is not flat, then it might make more sense financially to build on a new block of land.
Your builder will be able to help identify these issues with you and go through your options.
Building
Pros
1. Can design the perfect home for your family
Whether you build on a brand-new block of land or on your existing block, starting from scratch gives you the freedom to personalise everything to how you want it.
You don’t have to compromise and work with what you have, as you can find a new design tailored specifically for your family.
Everything from the number of bedrooms, to the tiles, and every nook and cranny is approved by you in order to achieve your dream home.
This is a major advantage if your current house is outdated, too small or old.
2. More longevity
Building from scratch means you have all the newest materials, so you know that the structure and integrity of the home is sound, improving the home’s longevity.
Generally speaking, new homes are easier to maintain, less susceptible to termites and more energy-efficient and come with added peace of mind in the form of a construction warranty. Which is why you’re probably better off rebuilding, if you want to make significant changes to your home.
3. Government building grants
It’s clear the recent Federal and State Government building bonus grants have boosted transactions, with land sales increasing 289 per cent when the grants were announced in June.
It makes sense that many people are using these grants to their advantage to finally build their dream home.
Whilst this is a great initiative, this can also be a disadvantage if you are still looking to buy a block of land but are struggling to find something amongst the competition.
Cons
1. What to do with your current property
If you want to build on a new block of land, then you have to figure out what you will do with your current property. Therefore, it might make more sense for you to rent out your property, or this may lead you to knock down your current house and build.
If you are renovating, you technically don’t have to leave the premises. While it may be a hindrance, it’s short-term pain for long-term gain.
2. Stamp duty
If you are building on a new block of land, you will have to pay stamp duty, as well as all the legal and moving fees that come with buying a new property.
If you choose to knock down and build or just renovate then you don’t have to deal with all the hassle and added costs that you would buying a new house.
3. Time consuming
Generally, building on a new block of land will be more stressful and time consuming. Not only do you have to search for a builder and design you like, but you also have to find the right block of land for you.
Now, with demand for land outweighing stock levels, it may be hard to find a block of land in the timeframe and location that you want whilst also competing with other buyers.
More information
So, it really depends on your current property and what your end vision is. If your current home only needs a few upgrades, then it makes far more sense just to renovate.
If you live in a desirable location that you aren’t willing to part with, but the house needs to be replaced then it might be more convenient to knock-down and build from scratch.
Alternatively, if your current block is too small or can’t be built on then perhaps buying a new block of land is the way to go.
SOURCE: www.reiwa.com.au
