Written by Terry Broun Jr.
Folks who purchase run-down properties with the intent to remodel, often underestimate the outlay for restoration. However, there are a number of things to carefully consider before committing to such an undertaking.
If you find your property has major structural or foundation defects, faulty plumbing or electrical systems, or will require extensive structural change to modernise, then rebuilding will be the most cost effective and saner option. However, if youâ€™re generally happy with the energy efficiency and space of the existing structure, and you simply want to update the kitchen or bathroom, then go the re-model route, which adds value to any home.
Then of course there is the cost and question of who is going to do the renovating if D-I-Y is not on the menu.
Old homes can be lumbered with all sorts of issues thanks to long-term materials deterioration. This can lead to structural failure. For instance leaky roofs, worn or cracked pipes can give rise to mould from resulting dampness. And old timber foundations can be riddled with pests.
If your fixer-upper is situated within a suburb of high demand certainly works for you. Prime locations like beach, on an extensive land are a plus as is CBD adjacent property. The decision to renovate or rebuild may also be determined by council restrictions, the style of property and its position.
Poorly insulated older structure may require extra cost of heating/cooling, whereas new homes are better insulated and more energy efficient.Â
Thereâ€™s no way around the fact that renovating will disrupt daily family life. You may have to live elsewhere for the duration of the work, which is not only a burden to the pocket, but also disruptive to the household. And if going the DIY route, consider whether you really want to spend every weekend working on the renovations when youâ€™ve been spending every weekday at work, and with a family to take care of.