Have an older home that is in need of more than a fresh coat of paint?

There are two options to give your property a complete makeover: a renovation or a knock down rebuild. But with both home improvement options involving extensive construction work, you may find yourself weighing up the pros and cons of each — especially when it comes to how much they will cost.

So, is it better to renovate or rebuild completely? Let’s break down the benefits of each, as well as the costs involved.

Pros and cons of rebuilding 

With a knock down rebuild, your existing property will be completely demolished and re-constructed using new materials and plans. Here are some of the pros and cons of a knock down rebuild:

Pros:

• A blank slate to fully customise your home, from floor plans to furnishings.
• Opportunity to incorporate energy-efficient elements that can lower utility costs in the long run.
• New materials for the home mean fewer maintenance issues.
• Potential for a lucrative investment return when selling the home.

Cons:

• Large upfront cost due to the size of the project.
• Potentially longer construction period.
• The need to stay elsewhere during the rebuild.

Pros and cons of renovating

Renovation projects can range from selected areas or rooms to a full-scale renovation of the entire property. The main difference is that with renovation, the overall structure of the home won’t be changed. Here are some of the pros and cons of renovating your home:

Pros:

• Ability to pick and choose which parts of the house to refresh, and which to keep as is.
• No need to relocate to other locations with strategic renovation.
• Retain the original charm of the property.

Cons: 

• Potential for costs to spiral out of budget when building issues arise.
• Council restrictions on the level of renovation permitted for older property.
• May require additional renovations down the line as the rest of the property ages.

Cost factors to consider for renovating vs. rebuilding 

The extent of the change for your home is the biggest factor in the cost comparison between renovation and rebuilding. If your aim is to provide a refresh for select rooms in the home such as the kitchen or bathroom, it makes more sense to opt for renovation to avoid spending necessarily on the rest of the house. Conversely, older or significantly depreciated homes can benefit more from a complete rebuild to provide more lasting value.

But this is not the only factor that affects cost — we’ll elaborate more on this below.

Is it cheaper to renovate or rebuild?

In all honesty, it could go either way. In general, most builders will tell you that renovations are cheaper than knock down rebuilds, but this isn’t always true.

What most homeowners don’t realise is that renovations can potentially unearth other issues in the home (structural or otherwise) that add to the building timeline and overall cost. In some cases, complications during the renovation process can cause costs to build up so quickly that it probably would have been better to opt for a rebuild instead. 

With rebuilds, the same builder is responsible for the project from start to finish, as opposed to a renovation where the current builders may not be aware of issues left over from previous builders. Of course, the other complications can occur during rebuilds as well, causing costs to go up as well.

Key factors that influence rebuild costs 

• The condition of the property’s foundation — After demolition, builders will be able to inspect the state of the foundation. Old piping and damaged foundations will need to be fixed before your new home can be built and will add to the cost of the rebuild.
• The new design of your home — The more extensive the design of your new home, the more expensive it will usually be to construct, depending on its complexity.
• Council fees — You may need to pay higher council fees if you are dramatically changing the layout of your home, such as adding an extra level to the home.

Key factors that influence renovating costs

• The extent of renovation — Complicated renovations like adding new rooms within the property will cost more than simpler cosmetic changes to existing rooms.
• Quality of labour and materials — When it comes to building services and the materials used, higher quality will always come at a premium. This also applies to how quickly you want the renovation to be completed.
• Additional complications — Issues such as the rerouting of wiring or plumbing can potentially be discovered during the renovation, resulting in additional cost.