The decision on whether or not to build a custom home from scratch or upgrade your current housing situation via home renovation is definitely a big deal. Building a new house to add to your portfolio of assets, or renovating the one you already have, can often be a daunting and confusing task. This does not always have to be case, however, because an informed decision can easily be made if one follows the advice given below.
Before You Build or Renovate
Available options for construction and design among those opting to renovate will be limited by the current conditions of the building and facilities to be salvaged, as well as the extent of the entire rehabilitation project. Despite these limitations, similar principles will apply to whatever work is to be done during renovation. Many factors contribute to home owners finding themselves at the crossroads of choosing whether to renovate their existing housing facilities or to custom-build new ones.
Straightforward concerns like comparative construction costs and schedules are critical components of their decision-making process, and various guidelines and rules of- thumb addressing these issues are well researched and documented in several venues. In contrast, many other subtle and perhaps intangible criteria are often easily overlooked, although their impacts on the decision to custom-build new homes or renovate existing ones can in most cases be quite formidable. A rigorous analysis that goes beyond just numerical factors and toward these intangibles can reveal additional key decision-making criteria that concerned parties may need to also consider in order to successfully pick their most appropriate course of action.
Factors to Be Considered
There is really no clear answer between renovating your existing home or custom-building a completely new one. However, before deciding between the two options, you will have to carefully consider several factors to determine the best alternative for you. The main issues you will need to consider include:
Project Cost: After determining the costs of refurbishing your home in comparison to the cost of building it from scratch, you should, as a general rule-of-thumb opt for renovations if less than 40 % of the original structure is to be rehabilitated, and choose custom building if that isn't the case.
Quality of the Original Building: To be determined by how well the original building is constructed, as well as the replacement costs of systems like wiring and plumbing.
Return on Investment: While remodeling or renovating can certainly increase your home's market value, the returns should be sufficient to offset any finances you contributed.
Current Location: Renovations would most probably to more expensive annual property taxes for those living in neighborhoods with already hefty property tax rates.
Environmental Factors: For example, constructing a new house will involve the moving of considerable amounts of debris to landfills. Renovating would also involve substantial amounts of dirt, but you will nonetheless cause less erosion and environmental degradation overall.
Appearance and Convenience: Any additions or renovations you make should not negatively affect the overall appearance, symmetry, or aesthetic appeal of your house, whether individually, or in contrast with other homes in your neighborhood. Those planning to build or renovate their homes on the lot they currently reside in must also ensure they are in no way inconvenienced by first considering where to store their furniture after they demolish the existing structures, or where they'll live while the new house is under construction.
Conclusion
Deciding between home renovation and custom building can be much easier and cheaper if you adopt a systematic approach. By fully understanding the interactions that make up building systems, and with the help of a real estate or construction professional, if possible, you will easily be able to identify various cost-cutting trade-offs that will enhance overall building performance.