Home Upgrade series: rebuild or relocate (part 2)

Last time we discussed the pros and cons of renovating. An increasingly popular alternative to upgrading one’s existing home is to knock down in order to rebuild, while many decide to relocate entirely into a new home. Let’s discuss these options in depth.

Knock down rebuild

Choosing to demolish your existing residence to rebuild a new home can be a good alternative to renovating if you love your neighbourhood, don’t want to relocate but require improved amenity.  However, this option is usually significantly more expensive than renovating or relocating.  Ultimately, the location of your existing home should inform your decision.  If you absolutely love where you are, including views, neighbours etc, and land values in the area are continuing to increase, it may be worth staying put and simply rebuild. 

Employing an architect to design a bespoke home is one option that ensures the build takes into account the specifics of the site and its surrounds.  Architect designed homes include custom finishes and detailing.  An investment with long term market appeal which can elevate the value of your property significantly. 

The alternative is the ‘project home’ model where a prepackaged design is put forward for consideration, or you might choose to work directly with a builder.  While project homes may not necessarily end up with the same bespoke attention to detail or site specific considerations, they are an increasingly popular choice.

Here are some pros and cons of demolishing an existing building to replace it with a new build. 

Pros

1. Access to more competitive rates. A rebuild will likely attract a broader number of builders because there is a higher profit margin for them when compared with a simple renovation.  When rebuilding from scratch, builders are less restricted and are not working off an existing building’s history.  As was discussed in our previous article, it may sometimes be hard to predict the cost and completion time upfront for a renovation due to the unknown history of the existing build, which a builder will always have to consider before committing to a job.
2. Brand new. You know you are getting something new in every sense; 
3. A fresh start. As it is a new build you won’t have to commit to existing metrics of the original building that may not have been to your liking, for example existing ceiling heights, room sizes, location of the property on the block etc. 
4. Up to date. You know the new home will be built to current standards and regulations, which would have likely different to when the original property was built.  So in that sense the building is as safe and robust as is expected of any house in 2024; 
5. More predictable. Once footings are dug, placed and poured, then the likelihood of variations to time and cost is low for a new build from this point onwards. 

Cons

1. Compliance: Everything will need to comply with current regulations. Planning controls include everything from heights, floor area, setbacks as well as safety, health and amenity such as fire protection, waterproofing, stair design, balustrade heights and so on.
2. More costly: A brand new build will cost more than an alterations and additions project.
3. Longer to complete: A new build will take longer, but not proportionately longer, than a renovation.
4. Temporary accommodation: Owners will need to find accommodation during the build which can add to the overall cost.
5. Latent conditions: These are conditions that cannot be identified during site inspection and following reasonable investigation. Most notably this will apply for in ground works such as rock depths being deeper than originally anticipated, soil bearing capacity being different to expectations or unforeseen discoverable items like a sewer line, tree route, artefact and so on.   
6. Weather disruption: Until what the industry refers to ‘lock up’, all works are at the mercy of disruptive weather (rain, wind, even a hot day). Lock up is when floors, walls and roof are completed and windows are installed. Rain or strong winds may delay works over the duration of the build.

Relocating

Often it makes the most sense to start a new life and have a fresh start in a completely different home which already meets all of your requirements.  If you have outgrown a neighbourhood (perhaps you would prefer to be walking distance to a school and parks, or you’d prefer easier access to the shops and cafes) relocating can be a better investment over renovating or rebuilding.  Even better if you move into an area with higher market appeal than your previous neighbourhood and which looks set to experience continued growth. 

Moving house brings with it its own level of stress and disruption, but once you’ve moved, particularly if you have found a home with little or no renovations required, you can settle in and enjoy the instant upgrade.  Moving into a larger or improved property (provided you’ve sought out one that ticks all the boxes) will usually involve higher upfront costs than your original property did, but the sale of your existing property will help to reduce the mortgage of your new home.  Depending on the property you choose, relocating may even end up costing more than renovation but will usually still be cheaper than a complete rebuild.  Relocating also means less downtime than renovating or rebuilding, meaning you get to settle in and enjoy your new home more quickly. 

Whether you are looking at renovating, rebuilding or relocating, it’s important to have a long term view of your situation and consider any outlay as a long term investment.  It can be helpful to set short term and long term goals and have a good awareness of what you are working towards and why.  No matter which path you choose in your property journey, Australian Mutual Bank may assist you to get into your new, improved, home sooner.  Visit us at one of our branches, call us on 13 61 91 or send us an email at info@australianmutual.bank.

Alison Gallagher is a freelance writer, resourcefulness expert and entrepreneur.  She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.