Reno vs New Build PPOR

[Allgood]

Hi all,

We're looking at getting plans built up for an addition to our PPOR. We want to add a good sized living room, dining room and deck off an existing roofline. Basically a square box 6 x 10m with no internal walls or plumbing etc and a 6 x 5 deck at the end. Initial chats have been around the $110,000 - $120000 mark.

The second stage will be 2 bedrooms and a playroom on the other end of the house - pretty much the same size, maybe a little bigger than Stage 1 and with a few internal walls. Say another $120,000.

So we're looking at around $250k for the addition before we reno the existing rooms which i think is absolute madness when we built a 300m2 house with a high level of finish, 2 bathrooms, amazing kitchen air con........ for less that $300,000.

So, reno or new build? I know there are threads on owner building - has anyone here had experience doing it and is there much money to be had? or do trades just add extra on top of all the little jobs like putting up the frame, gyrrocking etc.

Any advice greatly appreciated.

Allgood

 

[Big Dave]

You'll need to do the sums. What exactly will you end up with renovating vs building a new PPOR and what will they both cost? Also how much is a renovated vs new house worth in your area?

If you want to build new, you will need to factor in where you are going to live and associated costs while you are building your PPOR.

Also consider the renovation process and having to live in a house with all the construction going on, tradies in an out etc.

 

[Allgood]

Thanks Big Dave,

I guess I was just having a bit of a vent! We're on land so we could live in the existing house and build on another part of the site, but you're right we need to compare what the finished product of the reno is compared to a new build. It looks like building may be a cheaper option, but then we need to include site costs, basix, and access to the new part of the site. So I guess it's back to number crunching for me!

 

[ccw]

I'm going through the same thing as well, renovate would cost almost as much as a new build (simple) house. But this is because our house is quite old, reno would be quite extensive to make anything decent.

A new built 2 storey project home would be approx 450k-500k ish, yes it's higher when comparing to Reno, but everything would be new, no existing headaches to worry about. Our plans armed one, loan ready, just waiting for builder to start anytime soon.

 

[Big Dave]

We're on land so we could live in the existing house and build on another part of the site

Then you'd end up with two houses instead of one. Seems like a better deal?

Also remember the non-financial dividends; the feeling of living in a new home every day.

 

[Tim86]

Unless you can do a lot of the work yourself extensive renos just aren't worth it. Exception being if the property has a lot of character which is worth preserving.

There's just too much cost in labour when working on these old houses. To do all the work I'm doing to my house would normally set someone back 400-500k by the time I've done the full 500m2 Reno/extension. For 500k you could build an awesome new house. But diy means I can do it all for 200k and all my spare time for 2 years...