Since your home is most likely your most significant investment, deciding whether to build from scratch or buy an existing home is essential.
Both options have very distinct pros and cons, and the decision is highly personal and depends on numerous factors.
Research has revealed that six in ten people voted moving home as their most stressful life event.
As of the end of 2021, more than one-third (34.1%) of U.S. single-family homes for sale in December was new construction, up from 25.4% a year earlier.
So the majority of sales are still of existing homes.
Let’s investigate which is the right option for you.
Critical Factors to Consider
Choosing a home is a significant financial decision.
However, you should also consider the emotional aspects, which can be a lot more critical than you might think.
Four crucial elements to consider are:
- Emotional attachment
Which Option Will Cost Less?
This is not a clear cut answer.
As a rule of thumb, it is cheaper to refurbish an existing structure than to build an entirely new one.
However, it is generally much more expensive to refurbish a house older than twenty years.
Older structures are often more solid and made of better materials than new homes. This is a trade-off between being old and quality instead of new and not quite the same quality. Again, this boils down to personal taste.
Which Option Will Be the Quickest?
It is generally faster to renovate an existing building than build a new one.
However, suppose the building that’s being renovated is particularly old or in need of remediation work. In that case, this may not apply.
Consider Your Family’s Emotional Attachment to Your Home
Your family’s emotional attachment to your existing home can be pretty compelling.
Often your home is full of precious memories and is your place of solace and peace – as the saying goes. There is no place like home.
If there are particularly compelling emotional reasons to remain where you are and instead renovate your home, consider this carefully before deciding to sell up and move.
Which Option is Better From a Design Element?
A renovation confines you to the existing structure, whereas a new build allows for freedom over the new design.
The unique aesthetic of older buildings may determine your choice to renovate. This is a personal choice and depends on what you value in terms of design.
There is no substitute for the input from a high-end residential architecture firm to assist you in making your decision, so be sure to consult with one for advice.
The Pros and Cons of Building Versus Renovating
- You get to purchase a brand new investment
- You experience the thrill of moving into your own creation
- You do not need to deal with renovations and living on a building site
- Probably more expensive
- Probably will take a longer time to complete
- Probably cheaper
- Probably faster
- No moving costs
- No stress from moving
- Emotional attachment is not sacrificed
- Limited somewhat by the existing structure
- You might need to live on a building site for a while
- It can be more expensive with much older houses
Deciding whether to renovate or build new is a challenging yet important decision.
It is also an intensely personal one.
You need to consider what elements of the decision are essential to you and your family and then go for the option which checks the most boxes.