Renovating vs Building from scratch
What should you consider when deciding whether to build from scratch, or to renovate instead, and which of the two is more common?
Building typically costs more than renovating because it usually involves more complex work, more time, labour and materials. However, the choice between building from scratch and renovating is a personal one that largely depends on your budget and how much time (and patience!) you have.
Renovate or build from scratch?
Three important things to consider:
- Sale price: What would you get for your current property and what would it cost to buy somewhere else? Factor in legal fees, transfer costs, agents commission, moving costs, etc.
- Goals: Would renovations be sufficient to create your dream home, or do you need to move to meet your goals for the future?
- Investment: Apart from the physical structure of your home, also consider the area. Building from scratch usually costs more than renovating, but a brand-new home in a sought-after area could be a very valuable commodity in the long term.
Benefits of renovating
If you can live with the temporary disruption, renovating can be really rewarding because you're working with what you have and creating something new.
- Renovations are usually less time consuming than building or construction work.
- If all your home really needs is a refresh, then renovating would be less costly and time-consuming than building.
- You might not have full use of your property while renovation work is ongoing, but you probably won't have to move out.
- Work takes place within the existing structure and it doesn't have to be knocked down.
- You can refurbish your existing home to suit your needs and modernise or upgrade it as you like. For example, adding a work-from-home space and making it more sustainable and environmentally friendly.
- You can install new, more energy-efficient fixtures, fittings and finishes that could deliver significant cost and environmental savings over time.
- You can look forward to more space and greater comfort and convenience than you currently have.
- You will be adding value to your property, increasing your investment and improving your resale value.
Benefits of building from scratch
People who decide to build usually weigh up their finances, look at the logistics, and decide to bank on the long-term benefits. They basically choose to endure short-term pain for long-term gain! The benefits of building include:
- Building gives you a lot of control over the project - you build your dream home exactly the way you want it, tailored to your unique needs.
- You can build something that is more environmentally friendly and sustainable than your current home.
- You can future-proof your home by installing smart technology and high-tech home security.
- You can create a space that can accommodate lifestyle changes over time, for example adding a dedicated space for a home office.
- You have complete freedom when it comes to choosing fixtures, fittings and finishes.
- Everything will be new so expect to spend less time and money on maintenance.
- A new property is generally more sought-after when it comes to resale and would probably fetch a higher price than an older, more rundown place.
How BetterBond can help
Home finance is all about getting your dream home and at BetterBond we want to make as many South Africans' dreams of homeownership come true as possible. Whether you decide to renovate or build from scratch, we would love to help you make your dream come true. Here are the ways in which we could make it happen:
- Further loan or New loan: The building work that forms part of renovations could involve structural or non-structural changes to your existing property. If you have a bond, this is called a 'further loan' to your existing bond. However, it would termed a 'new loan' if your existing property is bond free. In many cases, an existing bond can be increased by way of a 'further loan' to pay for something big, including renovations and building work. Call 0800 007 111 and speak to a BetterBond home loan consultant, who will be able to help you choose the right option.
- Building loan: When you own or buy land and then have plans to build a structure or structures on that land, you require a 'building loan'. This type of loan can be a bit more complex than normal a home loan, but our experts will definitely be able to help you get the best deal. Call 0800 007 111 to speak to a BetterBond consultant and start building your dream!
- Further advance building loan: A further loan could also apply if you bought the land with a bond, i.e. there is a bond on the land and now you want to build. This is called a 'further advance building loan' and it's worth remembering that it can only be applied for at the bank that holds your current loan. Here too, a BetterBond consultant will be able to advise - you're welcome to call us on 0800 007 111.
It's time to bond with your new-look home!