Renovation or New Build Which Is Right for You?

The question of whether to renovate or pursue a new build is becoming more relevant in the Scottish market than ever before. Circumstantially, the renovation project may be in your existing home or something that you are purchasing. Both of these situations will be included. I believe what we are asking here comes down to five key factors, which I will expand on below;

Budget and true cost, Location, time, efficiency, and resale potential.

Only after these five factors have been considered and measured can the jigsaw of the question begin to put wheels in motion towards making that decision.

Budget and True Cost

Comparing the cost of purchasing a new build home and a renovation is really measured on the price of the renovation against the purchase of the new build. Where this becomes challenging is driven by the varied costs of renovating. An estimate and a budget for a renovation can often become inflated and exceed initial thought during the project. This is why budgeting for contingencies and factoring in all potential hidden renovation costs is important before making a decision on the question at hand.

Once there is a measured idea of the renovation costs now consider what are the new build incentives on offer? This could potentially weigh the scales to one side in making this decision. Many developers are now offering deposit contributions and upgrades, which helps assess the overall value of the deal.

Location

An extension to the theme of location is lifestyle. Do you want to stay where you are, is suitable and meets the requirements for your lifestyle, or are you looking for a move elsewhere? Every home tells a story, and the story may be worth continuing in your current home after the renovation project is complete.

Now, to factor in a move to either a renovation project or a new build based on the theme of location really comes down to the individual’s preference. In Scotland in particular, character and charm are right at the forefront of many properties. However, it might be time for some modern living, and this is something new builds offer: open-plan layouts, practical storage and modern kitchens to name a few.

Ultimately, lifestyle and location priorities will help make a decision here when answering the question. Important things to consider, such as transport links, schools, green spaces and employment locations, are all relevant questions to be factored in.

Time

The reality is, a renovation can take time. The stages of planning, resources, and trades can all factor into a lengthy period. A new build can offer a straightforward path to moving in depending on completion dates and any outstanding work. How does this affect your decision-making? Carrying on with the common thread of this blog, it is more often than not down to the individual’s time frame. There may be external things happening in your lives that affect this decision, and this should be taken into account.

How big is the renovation? Having to move out of your current home for the work to be carried out or live through the disruption can certainly be more challenging than initially thought. In particular if there are any delays in the work being done.

Efficiency

What do I mean by efficiency? This can come down to a variety of things. But in Scotland in particular, this ‘efficiency’ notion is addressed at the point of maintenance cost and long-term running costs.

New build homes meet modern building standards which tend to offer insulation and improved energy performance compared with an unrenovated and undermodernized home. Scottish weather can leave properties exposed to lots of wind and rain. Traditional older homes even after renovation, may still require future investment into stonework, damp insulation and roofs.

Resale potential

Making the right investment. This is a very important factor and why I have saved it till the end. How much is your home currently worth, and how much value am I adding with the renovation? As discussed with location, perhaps renovating where you are can have massive payoff in the long term. If the renovation is going to appeal to the wider market and add value, it may certainly be worth doing so. The same applies when purchasing a renovation project. If done so accurately, the payoffs can also be significant and very worth the overall cost.

In assessing this, I would seek out the right advice. Have the appropriate surveys done and speak to the relevant professionals before committing to a project or moving to a new build home.

In conclusion, the theme you will have picked up throughout the blog is that there is no ‘one size fits all’. The best decision you can make comes down to applying the above to your own circumstances and individual preference. Moving home and where you live is a significant aspect of our lives and one that must be met with care and planning.

The information and opinions contained in this blog are for information only.  They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice.  Before acting on any information contained in this blog, please seek a solicitor’s advice from Gilson Gray.