Our desires, wants and needs for our living situation will change as we progress in life. Starting out in home ownership commonly means starting small, with the intention of working toward the ‘dream home’ in the future.
As singles become couples and as couples become families (be it with little people or furry friends), space requirements and what ‘home’ means will shift and evolve as dynamics and desires change. It can be hard to know whether relocating, renovating or even rebuilding is the best choice. Each homeowner’s situation is unique, but if you are wondering which option might best suit you, this series is designed to help you weigh up some of the pros and cons of each.
Why renovate?
If you already love where you live and feel confident it is an area that will experience continued growth it may be worth putting your dollars toward increasing the value of your existing home. As with any renovation work, you only want to be working with professionals, so I’ve sought out the advice of someone who works in the industry to assist with this article. Michael Clarke of Michael Clarke Architects shares some insights into the pros and cons of renovating. Full disclosure, he is also my husband of 12 years and partner of 18.
According to Michael, Alterations and Additions is a term that covers most forms of significant renovation. “An alteration involves making changes within the footprint of an existing building, while an addition is adding to an existing building, such as an additional floor level, extra bedrooms, a deck or even a garage”. Major renovations such as alternation and additions often require a DA (development application) via your local council in NSW with that being similar in other states and territories.
According to Michael there are alternative faster pathways in NSW including complying development or exempt development.
“Complying Development is a faster pathway to approval than a Development Application where approval to build can be obtained within 10 - 15 days of lodgment. However, development potential is more limited than a Development Application and non-compliance cannot be argued on what is called a “design merit” basis. This is available through a DA.”
Exempt development on the other hand can be utilised when the modification footprint is “like for like” (i.e. no change of existing footprint within the property and no ‘change of use’) such as an interior fit out.
“No additional footprint will often mean you can complete works without council approval (subject to advice from a professional such as an architect or town planner). Therefore, cosmetic renovations such as surface level updates of your bathroom or kitchen (where layouts aren’t changed but cabinetry door fronts and tiles for example might be updated) can usually be completed without lengthy assessment time frames from Council and other authorities,” explains Michael.
Whether you are completing an internal fit-out or adding an entire new floor to your home, renovating can often be more cost effective than relocating or rebuilding. However, renovations can be disruptive and stressful and budget blow outs are common.
Concept drawing and cost estimates - or obtaining a budget estimate based on an early concept design can assist with establishing expectations. Ensure you interview several builders and or architects and ask for referrals, request quotes from more than one professional and seek out word of mouth recommendations.
Let’s break down the pros and cons of renovating:
Pros
- More sustainable: There is a significantly lower carbon footprint when renovating vs rebuilding. In most cases you will be using existing stock, materials (and therefore resources). This is dependent on the existing condition of the home. If the home is in relatively good condition and does not have mould, damp, concrete cancer etc. Otherwise new materials and resources will be required to remediate these circumstances.
- Save money: A renovation will usually be significantly cheaper than a rebuild and possibly also cheaper than relocating into a new home that already ticks all the boxes. The builder isn’t building as much from scratch, therefore you are paying for less of their time and expertise (assuming there are no serious damp or structural issues as mentioned above).
- Existing conditions: Building regulations are continually being updated and upgraded. “The benefit of updating an existing building (over rebuilding from scratch) means you are working with existing conditions that may well be contrary to current planning regulations (such as setbacks, building footprint, existing floor area, window locations, height above existing ground level etc.), Michael explains. This gives you allowances that would otherwise not be permitted in a new build.
Lived experience: Renovating a home you've already lived in allows you to reflect on what works (and what doesn’t) in the existing property. This can help direct desired changes (such as room sizes, orientation, outlook and living spaces) based on your lived experience. Having already experienced the home and its conditions also enables you to assess what areas of the property are subject to greater rain, sunlight, water run-off, tree damage, or whether the foundations have settled etc. This feedback and observation is helpful when working with a building as anything that is holding up and working well can be maintained while areas needing remediation or an upgrade can be treated as part of the renovations. - Retrospective compliance: Michael maintains this is an area which is at the discretion of an authority, “usually the expectation will be that you upgrade the parts that are being developed and everything else remains as is. However, this is not a given and advice should be sought from the professionals you engage.” For example, a wing built in the 1950s that will include a new attachment may not need to be upgraded to meet code for 2024. Not having to update everything to comply with code may save you money on the build.
- Accommodation: Depending on the type of works being completed, you may be able to live in the house during some, or all of the construction. This will likely extend the build time frame, but this can be offset by the fact that owners are not having to moveout and pay for a rental property that may be out of area to their lives (school, work etc.)
- Potential storage for building materials: The builders have a working zone for storage which can help for disruptive weather. This depends on the works, certain works will not be influenced at all by disruptive weather such as kitchen and bathroom fit-outs while more significant and structural alterations and additions may still be at the mercy of weather.
- Heritage considerations: Renovation may be the only option (i.e. you cannot rebuild on the same site) if you are in a heritage sensitive zone or heritage listed building.
Cons
- Potentially smaller pool of builders to quote: “Not all builders put their hands up for renovations, as they have to work off existing building constraints. The longer the gap between works (i.e. when the original house was built vs now) the more challenging this can be for a builder,” Michael explains. The building industry today (generally speaking) is using higher quality materials, newer technology, has higher standards and new building codes. "Builders having to renovate, alter and add to an existing building may have to contend with walls that are ‘not plumb’ (not straight across the height) or straight (in plan) and framing which isn’t to code (which is often the case in older builds, and will have to be amended as part of a renovation) and other such considerations which would not be an issue in a new build,” Michael adds.
Latent conditions: These can add to cost and time and sometimes are not uncovered until the works have commenced. Michael shares examples such as “mould from existing timber framing, termite damage, concrete cancer, insufficient concrete, steel reinforcement or reinforcement that is corroding, corroding structural steel, insufficient waterproofing extent, treatment and the like”. All of which are usually covered up by existing finishes (e.g. the floor, wall and ceiling lining) so can be unknowns before work begins. - Compliance: Similarly, works can become delayed if the builder uncovers parts of the existing building that don’t comply with current construction codes and standards. “Even though in theory, a renovation should be quicker than a rebuild, if issues become apparent the builder will be required to make the new works comply,” explains Michael.
Having the option of perfecting a house or apartment you already like into a home you love can be a wonderful opportunity. The key to a successful renovation is to have excellent communication with your builder and ideally have an architect or a project manager as your mediator to help ensure the project is built on time, on budget and in keeping with the design intent.
We’ve all seen the renovation disasters and the renovation delights on television so it is safe to say a ‘reno’ can go either way. If you prioritise integrity of contractors and quality of finishes and detailing over saving to create good value for money in lieu of finding ways to save a few bucks you are more likely to end up with a result you love. A successful renovation will ultimately increase the value and amenity of your home and improve your quality of life, and that is priceless.
Stay tuned for part two in our Home Upgrades series. Next time we’ll discuss the pros and cons of rebuilding on your existing land as well as looking at the third option of relocating entirely. No matter where you are on your property journey, Australian Mutual Bank can assist you to get into your new upgraded home sooner.
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.
