Thread: renovate or rebuild

Its really a matter of doing cost comparisons of your various choices balanced against the final values of each scenario. You need to factor in the cost of alternate accomodation where appropriate.

Sell. Move into a more modern, less of a hassle type house.

From the sounds of it your house would be great for a chippy to do up. Someone who doesn't have to outsource a lot of the work. With what you've described, if you pay contractors to do each step of the reno you'll be paying top dollar all the way.

From what you have said, with the (renovated) house up the road going for double what you paid for your joint, it still might be well worth your while getting it appraised, as you probably will of already made a fair quid on it.

Good luck with your decision making. (I don't envy you)

We were in a similar dilemma, an old farmhouse that was built in the 50's by two brothers who were cockies.
They had an old weatherboard place on the property and took a lot of the fittings out of it.
We bought the place as it had a substantial amount of land for the horses, our last place had none and agistment was costing heaps.
We bit the bullet and started to replace just about everything, so far we have spent about $40K but an apprsaisal has shown a capital increase of over $300K.
The biggest headache is the plaster, the old horsehair type, it is rippled and just generally awful but a bit at a time we are getting by, there was no heating, no, no true, just an open fireplace which was not effecient, in went a Ultimate insert and a reverse cycle aircon split system.
The kitchen comprised of a sink in the corner and an overhead cupboard, gutted the lot and have a new kitchen with all new SS appliances from Blanco (auctions at Grays, change out of $2K).
Bathroom on the go at the moment spa is going in today while SWMBO is at the races (why? don't we have enough horses at home?).
Vanity is in and extension is commencing after Xmas.
Total cost, $200K for dump at auction, $40K for bits, 6x12 metre workshop, electricians, plumbers etc and anticipate about another $20K next year for extension and bits.
We will do all the lining with plasterboard, flooring etc, just the sparky and plumber for the new ensuite and laundry.
At the moment it is warm or cool depending upon season although we need insulation when the extension is done, the kitchen works, the kids don't :mad:, hot water will be replaced soon with solar and we love the place.
Just my 2c worth plus GST.
Consider wisely given your location.

I reckon that you should trash it and build the house you want. It'll probably work out cheaper too.

In Sydney, I think the rule of thumb is it costs around $1800/sq metre to rennovate compared to about $1400/sq metre to build new.

I would imagine it's somewhat similar in Melbourne.

Sounds a bit like our place apart from the Aluminium cladding. We keep talking about renovating though rather than re-building. I reckon I can do most of the renovations it's just a matter of when

Knock it down.

Been through it three times now. It's fun etc. doing them up but these days there's too many traps for owner-builders to fall into. If you're going to pay someone, you might as well build new. Shouldn't be any harder to finance a new place than to finance a reno.

Only problem is you need somewhere to live in the meantime, so factor in rent, removals, storage as well. If you renovate, you might need to do that anyway - depends how extreme you go. People across the road from me moved out for 2-3 months while theirs was being done.

Renos are always a compromise and you never know what problems you are going to find as you go along. New places have their problems too but at least you can chase the builder over it. Unless you go owner builder, in which case the buck stops with you.

It's only money and life is too short. Let someone else worry about it.

I just had a brain wave, (it must be the coffee kicking in)

Why don't you have a poll, it certainly is the time of year for polls and elections. Then your decision would be so much easier.

I'm with silent on this one, sounds like there isn't really anything endearing about the present house

I think Silent has it right on the money,

We have decided to just this, we will wait a couple of years until my son has finished high school before we do any demolishing and construction. Gives us plenty of time to work out what and how we want the new place to be.

In the mean time we are just going to do maintenance projects (if something is falling off I'll nail it back) and try and upgrade things in the Garden.

Of course if a bushfire comes along and moves our plans up a couple of years .

Himzo.

I'm part of the <i>Silent</i> Majority.

Since your house has no period features I don't see any reason to keep it. I renovated a house in Brunswich about 6 years ago. The only thing we kept was the front two rooms because they had stained glass and one had a nice bay window. We had to restump, new flooring, new plaster, new roof and new wiring. It would have been cheaper for me to build from scratch but I would have lost the period features.

If you try a reno, the end result will be a compromise.

I reckon you should knock it down too - contact masterton or one of those other mobs. they do packages where they'll knock down the old joint and build a new one for anything between 130-500K to your desing or one of theirs or modified to siut.... cant go wrong..... you may want to contact a demolisher beforehand and they can salvage whats in the house first (eg hidden timbers of worth etc....)

the beauty of this is you dont have to get your own hands dirty and the pro's will knock it up pretty fast for you. of course you need to have the money up front and also have somewhere else to live for 6 months or so...

I believe I know the exact home youre describing and feel it may be worthwhile to renovate and modify to your needs, but without more information cannot go further, other than to say I have done the same project and achieved a most liveable home that once sold, fetched a very good price. it was a lot of work because I was unclear what kind of home I wanted.... now as an older and allegedly wiser man, I would love to have another CallaBunga to work on - AND - the plainer the better! Mine was a 14.5 squares plain jane and when sold, was a 23 square home with double mezzanines, large French country kitchen, original leadlights everywhere - double front bay windows and so forth. Let's see some pics

Cheers

ps. I will be happy to have a conversation about your place with a view to offering some insights into what may be possible

Whether the job is economically worthwhile may depend on how much labour you put in yourself. Ultimately you need to balance this against the outcome.

If you think you may only live in the house for a few years and then sell it, you should probably discount the hope of making it perfect. Be careful about how much you spend, and look only to potential short term capital gain.

On the other hand, if it is likely that you will live there for many years the house needs to satisfy your needs. In this case probably a demolition is the way. Given that it sounds as though there is little appeal to the current house.

If you consider the option of putting in a decent slab of your own labour then this could also be true for building from scratch.

Look at your lifestyle, now and in the future, time with family and friends, and economics.

It is really quite simple.

I have an unashamed bias for renovation - I would renovate two sticks into a 3 bedroom house given half a chance. I think we tend to place a lot of emphasis on the fiscal importance of work on houses, to the detriment of the more altruistic outcomes. However, with my philosophy you are never going to be joining the landed gentry. Best of luck

If you think you may only live in the house for a few years

Good point. If you do an owner-built renovation or new house, you are required to provide home owner's warranty insurance if you sell within 7 years (I think, check this - was 5 when I did mine but I heard it has changed in NSW) and you have to guarantee the work for the same amount of time. The insurance covers the new owner, not you but you have to pay for it.

If you're going to stay there for longer than that, it doesn't matter.