Renovating v’s Building

The process of deciding whether to renovate, build, or buy a home is complex and depends on many factors. At the end of the day, you should weigh your individual circumstances before making a commitment.

Renovating vs. building vs. buying brand new

The decision about whether to build, renovate, or buy a house is affected by your financial position and willingness to be involved in certain projects. While you will need some financial stability to undertake any of these three ventures, a multitude of other factors may have a significant impact on whether you want to become involved in a renovation or new build.

While there is a great sense of accomplishment when finishing a renovation or new build, it is important to assess your personal and financial circumstances so that you have the best chance of completing the project you choose.

Some things to consider before renovating

Renovating, whether it be a facelift or a full tear down, can be a stressful project. Your ability to make quick decisions, juggle competing tasks, think on the move, and remain calm, cool, and collected are vital to getting the desired result

To ensure you’re not making the wrong decision about your property, ask yourself the following questions:

• is the cost of building a brand new house cheaper than the cost of renovating?
• do I have the time to manage the project?
• what restrictions are there on my home (e.g. heritage listings)?
• will my renovation proposal pass council standards and regulations?
• will my plans to renovate mean I’m overcapitalising (am I spending more on the renovation than the property is actually worth)?
• Getting the right information for your circumstance ensures you’re making informed decisions about your renovation that will provide you with the right outcome.

Some things to consider before building

Building a house from scratch will be one of the toughest and most rewarding projects a property owner can undertake. Similarly, the planning, strategy, effort, and money that go into building a new house cannot be underestimated.

Yet a number of factors must be considered before knocking down an old house and laying the foundation for a new one;

• do I have the finances to complete this task?
• do I have the time to manage builders and tradesmen?
• can it be achieved in any other way?
• am I in a position to fund my lifestyle into the future after I spend money on building a new place?
• will my plans be approved by my local council?
• what are the building restrictions in my area?

Before building a new place, you should always consider whether you have the finances to finish the project. Your architect and builder will likely provide you with a quote, but it is wise to always budget more because unforeseen problems may arise. As long as you plan and budget correctly, building a new place can be extremely rewarding.

Some things to consider before buying

If you are not interested in undertaking a big project and don’t have the capital available, purchasing a new or existing property may be an appropriate option. With this option, you can look for the perfect place to live. You have all of the flexibility in the world to find a house that is just right for you.

When considering making a large investment, it is important to investigate the details thoroughly before proceeding with the purchase.

This can be the most expensive purchase you make in your lifetime, so it is crucial that you are sure of your decision;

• do I understand all of the costs involved (deposit, stamp duty,
• conveyancing, bank fees, legal fees, among others)?
• am I happy with the area that I’m going to be living in?
• am I planning for children in the future – do we have enough space?
• am I prepared for the ongoing maintenance costs associated with home ownership?
• am I prepared to look around to ensure I’m making the right choice?
• It all comes down to you

Ultimately, the most important thing is to make the right choice for your circumstances. Whether that’s deciding on renovating over buying or building, or considering what type of property you can afford, always do your research, and then do a bit more.

During the renovating, building, or home-buying process it can be all too easy to become overwhelmed. Taking the time to research and plan will give you the best chance of success.