Renovate or Knock it Down and Start Again
So it’s time for a change. You want to improve the overall livability of your home, but you’re torn between whether to renovate or demolish your existing home and build a new one.
Renovating is a great way of adding value to your home. But like most creative projects renovating can be frustrating and stressful – that’s where a Loan Market mortgage broker can help in getting the right finance the first time.
Both options have their advantages and disadvantages, and at the end of the day, demolishing your existing home and building a new one can sometimes be more cost effective, but that does not mean that it will necessarily deliver you a better outcome. Before making any decision there are a number of factors that you should consider, like:
- What are your real needs? Do you really need to build a complete new home, or would a renovation better serve your needs?
- Depending on where your home is and its age, you may or may not have the right to demolish your home, in which case renovating is your only option.
- Depending on the standard of your new home verses the standard of a renovation, the cost of new is not automatically cheaper. Unless you a building a very basic and very standard new home the cost of renovating verses new can often be the same.
- If you plan to remain in your home long term you need to fully consider your lifestyle needs. Basic new homes tend not to stand the test of time. Based on their quality they will often need renovating in 10 to 15 years time and potentially sooner than this. Some older homes have been functional for 70 to 100 years and can last that long again after a detailed renovation.
The cost of renovating versus demolishing and building from scratch must be carefully weighed up. Whilst it can be cheaper to build a new home than do extensive renovations on an existing home, the cost of demolishing your current home needs to be factored in, along with the cost of renting while demolishing and building work is taking place.
Often homes in inner city suburbs cannot be demolished due to character controls. However costs can be kept down by carefully planning your renovation and recycling much of your existing home, allowing you to add to your home by effectively doing a significant amount of new building work rather than a lot of true ‘renovation’ work.
Before you get started on your project, you will need to consider the features on your home loan. To give you greater control over your renovation you can choose from a range of financing options such as redraw facility, loan top-ups or home equity loans.
Dion Seminara Architecture
Tags: equity home loans, home renovations, refinancing loans, renovate