Every once in a while a home owner needs to ask himself the tough question – Should I renovate my existing home in Singapore or start from scratch by rebuilding? Between renovating your existing home or building an entirely new one, there is no one clear answer. Before deciding between the two, you’ll have to weigh several factors to determine the best choice for you. Here are some of the issues you need to consider:
Cost of the project
As with any construction and/or renovation project, you have to think about the price tag! Obviously, if you can’t afford the project, then you shouldn’t push through with it. Try to determine how much it would cost to refurbish your home, as well as the price of building from scratch. If you’re renovating more than 40 per cent of the original structure, it would most probably be cheaper to demolish the structure and build a new home. If you are keeping around 70 per cent, it would be more affordable to renovate.
Take note, there’s more to costs than simply paying for the project. You also have to look at the financing options available to you. Would your savings be enough to cover the construction/renovation project, or will you need to take out a loan?
How’s your credit doing? If you apply for a loan while your credit rating is low, you’ll have to deal with a higher interest rate, which will obviously cost you more money.
Quality of the original construction
There are, however, a couple of other factors when it comes to the scope of the renovation:
How well the original house is constructed
The currency of the systems installed (e.g. plumbing, wiring)
For instance, replacing all the ventilation, plumbing, and wiring systems in your home is an extremely expensive process and could end up costing you more and re-building. So, it would be smart to call a professional Singapore renovation company, such as the Swiss Interior, to give you an estimate of the work that needs to be done and offer you home renovation packages with different options to fit your needs with your budget.
Return on investment
Don’t forget to look at the project’s return on investment. Remodelling or constructing an additional room would certainly increase the market value of your house, but would the return offset the money that you put in? Okay, so maybe the increase in value could make up for your expenses, but do you intend to sell the house in the future?
Another factor that can affect the return on your investment is the value of the homes in your area. Here’s a basic guideline to remember: never overbuild your home—being the most expensive or least expensive home in your location would make it difficult to sell your home later on.
Think about what’s going to happen when you build or renovate your home. If you plan to build on the lot you currently reside in, where will you put your furniture when you demolish the existing structure? more importantly, where will you live while the new house is being built?
If you decided to instead refurbish your home, would you be able to live in the house while the renovation is on-going? Take note that in this scenario, you should expect long stretches when you can’t use certain parts of the house that are under renovation (e.g. the bathroom and kitchen). When this happens, where and how will you cook? Where will you clean up? It’s also entirely possible to not have electricity, water, heating, or air conditioning during this time.
The bottom line: either project will cause its own sets of hassles. It’s just a matter of planning ahead.
Here’s something to consider if you’re leaning towards a renovation or adding a room: see to it that the rooms would not look as if it were added when compared to the rest of the house, The new rooms have to look like they were part of the original structure. If this is something that the contractor can’t promise, then you either look for someone else or build an entirely new structure instead. While such modifications can technically add value to your home, it would probably be more difficult to sell.
Don’t underestimate the location of the home. If you live in a neighbourhood with hefty property tax rates, renovating would most likely lead to a more expensive annual tax. In contrast, constructing a new home from scratch would allow you to choose your location and pick a place with a more affordable property tax. You can even buy cheap land and build your home there.
Another thing to take into account is the possible environmental effects of the project. For instance, building a new house from the ground up means you’d have to move thousands of pounds of debris to landfills. Renovating would kick up a substantial amount of dirt, but you’d still disturb fewer plants and cause less erosion overall. If your area is already prone to flooding, you may have to stick with remodelling. You may be planning to build an environmentally friendly home, but in this case, the end certainly doesn’t justify the means.