With television renovation shows’ popularity at an all-time high, it may seem tempting to renovate your home. However, it may actually be less expensive to tear down your home and start from scratch.
Before deciding to renovate or rebuild, be aware of the 5 major differences for both before you decide.
Your Overall Budget
If you are on a tight budget, remodeling a bathroom or attic space can be a small project that won’t break the bank but will still add value to your home. However, if your entire home is in need of a major facelift and you have the budget, rebuilding may give you more bang for your buck. Be careful though: once you tear down your home, you are committed, budget-wise, until the rebuild is complete.
Your Valuable Time
Depending on the scope of work you want to complete and how valuable your time is, this can help determine whether to renovate or rebuild. Demolition and reconstruction of a home where walls, plumbing, and electrical are moved can take much longer than building from the ground up.
Your Ultimate Goals
Is your goal a quick profit or are you looking for your forever home? Do you want a home that requires less maintenance or are you okay with the upkeep required for an older home? The answers to these questions can lead you to a decision. Older homes require much more upkeep than a brand-new home, and a complete tear down allows you to take control over what you want for the long-term.
But, if your goal is for a quick turn-around and profit, renovating one or two rooms (such as the kitchen and bathroom) can add profit to your home.
This may be the most deciding factor involved in your choice. The amount of money you can borrow may make the determination for you.
However, with different types of financing available today, you may come out better with tearing down and starting over.
Before making any major decisions, take the time to crunch those numbers, seek professional advice, decide what is important to you, and take a hard look at your finances.