HI All,
I wrote this to help you weigh up the pros and cons of building a new house, buying an already existing one or renovating an older home.
This is a massive decision, do you build or buy established? I heard a statistic once saying 85% of people choose to buy existing rather than build. That is a lot, and if this stat is true I put it down to a few factors.
It is just easier to buy established. You point to a house and say I want it do some paperwork agree on a few things and presto in a few months it is yours.
People are confused as to where to start with building. It all seems too complicated, which builder? What home? What changes? What is missing? etc.
Buying established is just quicker.
However I think the above reasons are for people who didn't really consider building seriously to begin with.
The reason I find most people build is as follows.
They can't find anything that ticks all the boxes in the established market (happens a lot)
They have their own ideas as to what they need and want and will not settle for "almost" perfect.
They want to own the home and I don't mean purchase it but can say 'Hey I built this place. I am the first to live in it and everything that went into it was my choice." In my opinion that is really cool.
There is something special about choosing your own design, putting your own personal touches on it and creating something that is going to be on this earth for a very long time that you created. It is like building your very own sculpture that you will live in and will most like be there for the next 30 -70 years, Pretty cool huh?
Basically the choice to build or buy an established home depends on what you really want in a property.
Here are some of the benefits of building your new home as opposed to buying an established house.
New build
House will be brand new.
You can make changes
Under Warranty
Takes about 12-14 months (Single Storey)
Save about $15,000 stamp duty
Price is often cheaper
Established House
Old, somebodies designs
You can't make changes without renovating
Renovating can be expensive
No Warranties
Takes about 2 months
You will pay additional stamp duty
Owner's opinion on price
The no warranties issue is a big one. If you buy a place today, what could go wrong tomorrow? why are they really selling it?
Renovating an older home vs Demolishing and starting with a brand new home.
This decision varies from house to house. Get a quote on renovating and it will blow your mind as to what it actually costs. It is extremely expensive as you need to pay to partly demolish some older parts (which requires trades) then re-build the new bits (which require trades again) and then you need to insure the whole home just in-case you or the builder makes an error and the home collapses.
Here are my reasons of when to renovate and when to build.
Renovate when you
Have a character home, beautiful federation, tuck pointed, Californian Bungalow etc style home that looks amazing and fits the street scape, it's very costly to recreate these older styles and they often don't have the same as the originals. Plus it would be a waste or an awesome frontage.
When you are in a Shire area that the home is heritage listed. You can't just demolish there are strict rules to follow.
When the R-codes have changed on your block against your favour. If you demolish you need to meet the new rules if you leave some of the original structure you can keep the old rules. Even one wall will suffice. Check with your local council first.
When you are just re-doing the inside and don't need to extend or make any major structural changes.
When you love the home and just need an extra room or bathroom.
When you have a block sloping more than 1500mm or just a terrible block to build on. This can be an expense that goes through the roof quickly.
If you would rather endure living with tradesmen, dust and machine noises 8 hours a day than live with your mother in law for 9 months.
If you are just tidying it up to sell.
Demolish and build a new home when
Your home layout needs more than just a make over. It needs an overhaul. Designers can come up with a much better plan when we are not limited to rooms that are already there.
You are doing major extensions. Get both quoted, often you will find starting with a brand new place is cheaper and... well... it's brand new.
Your current house is pretty average and nothing too flash to look at. For example, If you had a war time widows home built on the cheap in the 1940s. Plain Jane with a wall out the front, I wouldn't run off to start renovating as it wasn't much to look at to begin with.
When you can't stand mess and intend to live in the home while it is being renovated. Work men going through your home is unsettling, even the most careful will take it's toll on your sanity.
When you are doing changes because you need to, but truth be told it isn't really improving your home that much and you are restricted by what you are keeping. When you renovate to a certain degree you are compromising. You are putting up with what is already there and not starting with a blank canvas. So you need to work off someone else's work.
If your house it terrible and you are renovating to improve it, but still it will be just 'okay'. Do it right start a fresh.
Remember when you are renovating, you are putting new legs on an old body make sure you are replacing all the things that may need replacing for example electrics, plumbing etc.
Wold love to hear your thoughts on this?