Whether you have outgrown your current home or are looking for your first home to buy, one of the questions you’ll ask yourself is whether you should consider renovating an older home or opt for building a new home. There are advantages and disadvantages to both renovating or building new and deciding between the two can oftentimes be an overwhelming decision. It is important to understand the difference between renovation and a new construction and to consider all factors involved in both options. Here are the pros and cons of new construction vs renovating an old house.
Renovation vs Building New House
Whether you are considering buying a home that needs renovations or you have lived in your home for a long time, there are several things to consider before deciding between renovating or building new. For instance, if staying in your neighborhood is important, the difference between renovation and new construction could depend on the availability of vacant lots in your neighborhood. It’s also important to consider your budget; it may be less expensive to buy a new home in an affordable area than to renovate and if you choose to renovate, will the renovations increase your home’s value. The following pros and cons of renovating an old house vs building a new house may help ease the stress of making your decision:
Pros of New Construction
- A new beginning-Building a new home means you can start over in a new area. It’s an opportunity to meet new neighbors, have new landscaping and start fresh.
- Financing options-Buying or building new often comes with grant options, reduced interest fees, and lower taxes.
- Possible profit-Selling your current home means you may make a profit, especially if you’ve paid off the mortgage.
- Customizable-Building new means you can design the ideal home for your family. You will be building from scratch, so you can personalize the home however you choose.
- Longevity-Building a new home means that everything will be new; you will have all of the newest building materials and the appliances and equipment will be new, which means it will be a while before you have to worry about costly replacements.
Pros of Renovating
- The initial cost is less-If you are searching for a home that needs renovations, one of the most beneficial things about older homes is that they cost less than a new home. If you currently own an old home that needs renovations, you may have already paid off or are close to paying off the mortgage.
- Older homes have character-Older homes often have intricate details, such as the moldings or light fixtures that can’t be found in newer homes.
- Solid construction-Older homes generally have a more solid construction than modern homes that were built with inexpensive materials. Even if you have to update the electrical and the plumbing, the structure of older homes is generally more solid.
- Personality-Renovating will allow you to upgrade, without altering the personality of your home.
- Less expensive-Renovating an older home is typically less expensive than buying a new home because you renovate on a room-by-room basis. You don’t have to do all the renovations at once, which means you can budget the renovations according to what you need and want.
- Choose what you want to stay or go-You can choose to keep the things you love about the house, such as the high ceilings, the wood floors, or the antique light fixtures and hardware.
- Add value to your property
- Stay in the area that you know and love
Cons of Buying a New Home
- Expensive and time consuming-Selling your current home can be costly. You will need to pay a real estate agent to list your property and if the home doesn’t sell quickly, you may get stuck paying two mortgages. Selling a home can be complicated and time-consuming, especially if you are building new construction.
- The moving process-Moving requires you to sort through everything in your current home, packing and deciding where to store items in case your new home isn’t ready when your old home sells.
- Dealing with builders and construction workers-Although it may be exciting to think about getting to choose everything that will go into your new home, this process can also be extremely overwhelming. Buying new means you will have to make all of the decisions for everything from the paint colors to the roofing materials.
Cons of Renovating
- Costly-In some situations, renovating may be more costly than building new, depending on the extent of your renovations. For instance, re-roofing an older home requires removing old materials and replacing them with new ones, which may be more expensive than the initial installation of a roof.
- Interference-Renovating an older home means turning parts of your home into a construction zone, which can be stressful and overwhelming.
- Toxic materials-Depending on the age of the house, there may be toxic materials, such as asbestos or lead that much be removed, which can be dangerous and costly.
- Time-consuming-Renovations can be time-consuming, especially if you want to use things that are equivalent to the age of the home, such as moldings or doors. Searching for original items can be extremely time-consuming.
Both selling your old home to buy new and renovating your old home can be exciting, yet stressful and overwhelming. So, it’s important to have a clear understanding of what to expect, such as the timeline and the cost. Keep in mind that either process can be time-consuming, but the end result will be an accomplishment. Talking to a construction company about the difference between renovation and a new construction in your area may help you to have a better understanding of which option will be the best choice for you and your family.