This is yet another question that we are constantly asked in the early to middle middle stages of the renovation process with new clients.
Perhaps shocked by the actual cost of renovation once they receive it or blinded a little by the new home floor plans and price points they see in the ever shrinking weekend papers, we often get…..”but I can build a brand new 4 x 2 for less than $200,000!!”
In theory you can….
But here are a number of factors to consider when comparing the REAL cost of a new build versus the renovation concept and price you have received….
1. You need to allow for the cost of demolition, which depending on the size and location of what you currently have, could amount to anywhere between $15,000 and $20,000
2. You have to allow for a minimum of 12 months rental somewhere else as you can most times live through a renovation but certainly can’t live through a new build!
3. The average renovation is completed in between 3 to 5 months. You need to allow at least 12 months for even a fairly modest new home build
4. If it is an old house you are demolishing, then most likely the ceilings will be a minimum of 2700 high, often 3 metres or more. Your standard new home will have only 2400 ceilings throughout most likely and this is very hard to get used to after years of living with high ceilings
5. Air conditioning and total landscaping of the block (including reticulation and crossovers)needs to be allowed for, as most likely a majority of existing gardens will be destroyed in the demolition, along with the house of course!
6. The standard 4 x 2 under $200,000 will generally have very small bedrooms for the children, often only a basic level of finish to the kitchen and bathrooms/laundry and sometimes a very minimal allowance for lighting and power points.
So in short….
There are many more costs associated with a new build than just the dollar figure next to the floor plan in the paper. So if this is an option on your radar, just be sure and consider ALL the costs involved with totally completing the new home build, not just the initial price point on the floor plan.
Also be sure and confirm with the builder BEFORE you enter into any contract, that everything you want is included in the contract price you sign at, so avoiding the pain and heartache of often costly post contract variations.
Sometimes people do decide to head down the new build route, that is just the nature of the renovation game. Sometimes people end up buying a new house.
Just to be sure and due your diligence before taking the plunge.
For examples of recent renovations at a wide range of price points, please visit the Before and After page on our web site.