Existing Properties, Take it Down or Fix it Up?
Sometimes you can find yourself with a property you like, but it already has a house that doesn’t suit your needs. At this point, you are faced with the dilemma, whether to renovate or start over. It is not an easy decision. If you paid for the property, you have already sunk money into that house, so destroying the building represents a loss. Then you must recover that loss with new construction. Alternatively, you might not be able to transform the existing property into what you need without essentially starting over. Here are some considerations to help decide.
- What do you Love About the Property? Is this a one-of-a-kind property with either a great view or a location that can’t be surpassed? How long do you intend to stay there? Could you get a similar property without a house already on it? Sometimes the location is more valuable than the home. In this case, it can make sense to build a great house to go with it.
- What are the Advantages of the Existing Structure? Is the house historical, or does it have any features that would be hard to replace? Can it be expanded easily, and what are the hidden treasures. Or is the house just too far from what you would like to have. These questions can be difficult if you are not in the renovation business. If you are deciding whether to knock down or rebuild in Canberra, you can get professional opinions and learn some of the options through consultation.
- How Much do you Want to Spend: Budget is always the primary consideration with any real estate project? Rebuilding is expensive, but renovation can be costly as well. You will, of course, be adding value to the property, either way, so your lender will recognize the asset potential. Renovation is almost always going to be the least expensive option, though. And if you are trying to be economical, a quality renovation might be your best path.
It is never an easy decision; before you begin, there will be many unknowns, especially with renovations. If you decide to rebuild entirely, you will get exactly what you paid for, but you will have to decide for yourself if the extra costs are the best choice over time. Of course, a new house comes with considerable peace of mind and usually a mortgage.