Should You Renovate or Build?
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from local builders
One of the most difficult decisions of all time happens to be whether to opt in for renovating your existing house/workplace or having it sold and go with building a new one from scratch. If you happen to be at crossroads facing the same choice, this piece should assist you in making the decision for good. The prime factor that has probably lead you into thinking of renovation or building from scratch is that the house is becoming too small and unsuitable for you or your family or it is old and outdated.
When is it actually right to build from scratch:
For the financially sound that have seamless access to affordable accommodation in the waiting period of the actual construction, building from scratch is highly recommended. Having this said, it is important to realise that the process of building is a process that takes its due effort and time. Like anything else that consumes significant time and effort, the results of building from scratch sure are rewarding. The build-up process particularly suits folks who own their home or workplace and their sanctuary is located on a piece of land large enough to support dual or three-fold occupancy.
When does it make more sense to renovate:
Renovation makes more sense in a number of cases, the first and foremost being the situation when there isn’t a viable option to move into while the (otherwise opted for) building up would take place. This normally is the case when you simply cannot afford to move away from your home owing to, say, your job location being in the vicinity of your home or the possibility of your home-office being badly affected if you demolish the entire place and side with building ground up.
The financial insight:
Expect a greater cash outflow when you have decided for building ground up. Naturally, demolition has its associated expenses and so does constructing all the way from a slab. Not to mention the charges of renting out an alternative accommodation during the construction phase. This all adds up to a mammoth overall amount.
On the other hand, renovation offers two fold savings. The expense associated with demolition is waived off and then adding/removing only certain features to a pre-built home leads to a decreased overall cost. On top of that, since you’ll be squeezing in into whatever space during the renovation, the expenditure associated with accommodation rentals are also rooted out.
Return on investment:
Finally, a bit about the overall return on the investment. Let’s try to answer the all important question about selling your house. What is more of a profitable investment in the long run, building or renovating?
The answer depends on multiple factors including the location of your house, the real estate landscape and the overall economic conditions. Naturally, you would not consider demolishing and rebuilding if the land is situated at a location with inherently low property value, the difference in the returns and investment tending to a be a negative number in this case. Similarly, you will have to make sure that the renovation costs can be easily recovered even if you are to sell the house now or five years later. The returns also depend on the building and renovation design. Morphing the outdated architecture into a contemporary design marvel (by building or renovation, either way) is known to result in higher returns on investment.
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