Do you feel your house would be just perfect if you could construct an extra room or redo the washroom or make some tiny upgrades to the kitchen?
Or, do the problems run deeper than that? Is there a backyard that collects water in the rain or the home is located on a busy street, hampering your sweet night’s sleep?
If your home no longer feels like the perfect abode, you may be thinking of knocking down some walls or simply rebuilding the entire house. But wait, how do you decide? Should you renovate to add an extra kitchen or a bathroom? Or, should you rebuild to make better use of your land?
Well, the answer, of course, depends largely upon your budget and the amount of time you have on hand. But, here are a few more things to consider before you decide to renovate or rebuild:
The condition of the home
The state of your home can help you determine if you need to renovate or rebuild. Are you comfortable living in the same house with some cosmetic changes? Or, would you like to make some structural changes?
Is it a style upgrade that you want or more floor area for your family? If it is just an outdoor seating area or a kitchen upgrade you are aiming at, renovation could be a good choice. However, if you want to create more space or change the division of rooms, we suggest that you contact an architect or a builder to check if your house can withstand the structural changes.
Your home, especially if it is very old, is not just an integral part of your life but also your neighbourhood’s history. Consequently, in several areas, council planning laws do not allow houses of a particular age or historical significance to be demolished. You may not even be allowed to make drastic changes to the appearance of such a house if it is a heritage listed home.
The costs involved
The cost of a renovation depends upon the changes you intend to make in your house. In general, a major renovation can cost significantly higher than a knockdown rebuild, according to experts. Besides, when you rebuild, you are creating your home from scratch – which means, you no longer need to compromise on the floor plan; you are free to create an alfresco area or a pantry that could be difficult to include in an existing design.
Note that if you do decide to rebuild, be sensitive towards the environment by recycling or reusing the existing material in your home.
Return on Investment
Whether you renovate or rebuild, it will cost you a good amount of money. But, which of the two options would give a better return on investment depends upon the condition of your house and its location.
Compare your home with the other houses in the neighbourhood and ask yourself the following questions:
What kind of homes sell in your area? Is your existing home one of the worst in the area or closer to the best houses in the neighbourhood? Are most of the houses surrounding yours brand new or renovated?
Next, speak to some local agents to get an idea about your home’s current value and what it would be worth if you renovate it. You can also check the selling price of brand new houses of the same size in your neighbourhood.
Once you complete this exercise, you would have a better idea of your home’s current worth and what it can fetch you post the changes you intend you make. This would help you set a budget so that you don’t overspend irrespective of whether you choose to renovate or rebuild.
Yes, this one might sound surprising but the decision to renovate or rebuild also depends upon your nature and preferences. If you are the kind of person who is attached to the history of your house, you’d most probably prefer to renovate the house while keeping its original structure intact. However, if you like all things new and shiny, a rebuild is what would suit your taste better.
Of course, despite your personal tastes, practical considerations such as cost and market value will determine your final choice. The end result is to have a comfortable and good-looking house that is in sync with your lifestyle.
How to fund a renovation to your home
If you are knocking down and rebuilding your home, a construction loan might be the most suitable for you. However, if you only intend to renovate your home, you could always use the equity in your home to fund the renovations. Speak to a mortgage broker online to understand your options better.
HashChing is an online mortgage marketplace that enables Australian homebuyers to compare broker pre-negotiated home loan rates online. Besides, aspiring home borrowers can get in touch with our verified broker partners online to have their queries answered by experts in a transparent manner, free of cost. Browse our broker database.
By Vidhu Bajaj,
HashChing Content Writer