Renovation or new build? Exploring the Best Option for Your Unique Home

It can be difficult to know whether it’s best to renovate or undertake a new build instead. There are pros and cons of each option, of course, but how do you know which option is the best for you and your circumstances? As architects specialising in new homes and renovations, we understand the complexities of this choice, especially for clients seeking something beyond the standard housing options available. Let's delve into the factors at play when deciding to renovate or build a new home. We'll explore the unknown costs involved, the environmental impact, the emotional connection to your current location, lifestyle improvements, long-term capital value, and financial considerations such as avoiding taxes like stamp duty and capital gains.

To give you a real-world example, with a recent project, our clients came to us with a renovation in mind. Through the course of our investigations and preliminary designs, we realised that while the existing house was lovely, it was going to take a substantial amount of work to bring it up to scratch. Similarly, it was located on a tricky part of the block that made it difficult for an extension to capitalise on the size and orientation of the site. In this case, building an entirely new house presented an opportunity to create a comfortable, efficient, and architecturally inspiring home for a similar cost. This is because there would be no need to rectify the existing house and there would be efficiencies in the overall size of the home if designed from scratch. It also presented the opportunity to plan the new project for the possible future subdivision of the block. Would they be interested in starting with a clean slate?

Ultimately, our clients decided to save their beloved house and invest in its future which we were delighted about. However, as architects, we consider all the options and it is our obligation to fully inform our clients about their options and help them determine what's best for their unique circumstances. When deciding whether to renovate or build a new home, here are some of the important factors to consider...

Unknown Costs Involved

Renovating an existing home can be an attractive option for many homeowners, but it's essential to be aware of potential unknown costs. While renovating may seem like a cost-effective solution compared to building a new home, unforeseen issues can arise, driving up expenses. Structural problems, hidden damage, or outdated electrical and plumbing systems are common surprises during renovations. Even cosmetic touch-ups like painting, sanding and polishing floors, and updating light fittings can add up quickly. On the other hand, building a new home provides a clearer picture of costs from the outset, helping you budget more accurately.

Minimising Resource Use

In an era where sustainability is a key concern, minimising resource use is a critical factor in the decision-making process. Renovating your existing home often involves working with the existing structure, which can be more environmentally friendly than the construction of an entirely new building. That said, it can be a false economy if you end up gutting the entire house back to its framework and then replacing everything with new!

Adaptive reuse of materials and a focus on energy-efficient upgrades can contribute to a more sustainable renovation project. This consideration becomes increasingly important for clients who want to reduce their environmental impact and embrace a greener lifestyle.

Stay in the Area You Love

One of the most significant advantages of renovating your existing home is the ability to stay in the area you love. Similarly, if you build a new home on a property you already own, whether through subdivision or a knockdown and rebuild, it allows you to stay in the area while still realising the other benefits of creating your own home from scratch. Many homeowners develop deep connections to their neighborhoods, whether it's due to proximity to family, a sense of community, desirable school zones, or fond memories associated with the location. Renovating allows you to preserve these connections while tailoring your living space to meet changing needs. Building a new home on your existing property provides a unique opportunity to create a custom-designed space while maintaining the familiarity and comfort of your current surroundings.

Improve Your Lifestyle

A key consideration when deciding between a renovation or new build is how each option aligns with your lifestyle goals. Renovating offers the chance to reconfigure spaces to better suit your needs, whether it's adding an extra bedroom for a growing family or creating an open-plan living area for enhanced social interactions. The customisation possibilities are vast, allowing you to improve your daily life for the long-term. Building a new home provides the ultimate blank canvas, enabling you to design your home from scratch that perfectly complements your lifestyle preferences and future aspirations.

Increase Capital Value Over the Long Term

Investing in your home, whether through renovation or new construction, can significantly increase its capital value over the long term. Renovations that enhance functionality, modernise and improve the design, and incorporate energy-efficient features can lead to a substantial return on investment. Similarly, a thoughtfully designed new home on your existing property as a subdivision or knockdown and rebuild can boost your overall property value. Understanding the potential for increased capital value is crucial for homeowners looking to make a wise investment.

Avoid Taxes Like Stamp Duty and Capital Gains

Financial considerations play a pivotal role in the decision-making process when it comes to renovating or building a new home. One significant advantage of renovating your existing home or building on your current property is the potential to avoid taxes like stamp duty and capital gains. Purchasing a new property often involves additional expenses, including stamp duty. By renovating or building on your existing property, you can circumvent these costs and invest the savings into the design and construction of your new home or renovation instead.

No one-size-fits-all Answer

In the debate between renovation and new construction, there is no one-size-fits-all answer. Each option comes with its own set of pros and cons, and the decision ultimately depends on your unique needs, preferences, and long-term goals. Renovating your existing home allows you to preserve the charm of your home, remain in your current location, minimise environmental impact, and potentially avoid additional taxes. On the other hand, building a new home provides the freedom to design a space from the ground up, ensuring it perfectly aligns with your lifestyle and aspirations.

As architects specialising in atypical homes for discerning clients, we understand the importance of a well-informed decision. Whether you choose to renovate or embark on the exciting journey of building a new home, our expertise is dedicated to bringing your vision to life. Contact us to explore the possibilities and turn your dream home into a reality.