ᐅ Which is more cost-effective: demolition or full renovation?

A naive question:

I am considering buying a dilapidated property and then renovating it or building a new property "on top" of it.

Is that a foolish idea?

Is it possible, in general, to say which is cheaper? Demolition or a "gut renovation," meaning keeping the foundation or basement and building new above it?

It usually comes out the same in the end...

Often, a new construction project also involves a new floor plan. Existing walls can therefore obstruct a new design and are more likely to cause delays and additional costs.

A friend of mine faced the same question and had to renovate an old building extensively (about 200,000€) because the plot and property were inherited, and the mother-in-law insisted on renovation instead of demolition. Now he has the old walls with new windows, new insulation, an old basement, and so on... As expected, he ended up with mold everywhere in his newly renovated old house! Even though he hired professional companies to do all the work. If I had to decide, I would tear it down and build new immediately.

Best regards!

Thank you very much for your very informative answers.

That has helped me a lot.

So, if I understand correctly, when buying a fixer-upper (and thus saving on development costs), it makes sense to demolish the existing building.

Thank you!

If a property is in very poor condition, a complete renovation usually isn’t worthwhile. However, if many parts are still usable, renovation can definitely make sense.

D3N7S schrieb:
A friend of mine faced the same question and was forced to do an extensive renovation (the plot with the building was inherited, and the mother-in-law insisted on renovation, not demolition!) costing about €200,000 (about $215,000). Now he has the old walls with new windows, new insulation, the old basement, and so on... As it often happens, there is mold everywhere in his renovated old house! He had all the work done by professional companies! If I had to choose, I would definitely tear down and build new.

Cheers!

But if you renovate properly, there won’t be mold in the house. Hiring professional companies alone is not enough. Each company usually recommends only the solutions they prefer and that are easy for them to implement. There should be some form of coordination overseeing this. When construction work is properly coordinated, mold should not develop.

We have also completed a full renovation and have no mold anywhere; everything turned out well.