ᐅ Which is more cost-effective: demolition or full renovation?
Created on: 24 Sep 2015 16:56
S
SetTrend
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?
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?
In my experience, people still want around €40,000+ (approx. $43,000) for properties that need to be demolished, including the land — which is obviously frustrating since the demolition itself also costs money.
Personally, I would consider a full renovation if I like the appearance or type of the building (or if it’s necessary). For example, a settlement house from the 1950s with low ceiling heights, questionable structural condition, and a damp basement is quite different from an Art Nouveau villa with a vaulted cellar, 2.8 m (9 ft) ceilings, and original flooring that can be preserved.
I think it’s important not to expect to save a lot of money with a full renovation just because the basic structure is already there.
Personally, I would consider a full renovation if I like the appearance or type of the building (or if it’s necessary). For example, a settlement house from the 1950s with low ceiling heights, questionable structural condition, and a damp basement is quite different from an Art Nouveau villa with a vaulted cellar, 2.8 m (9 ft) ceilings, and original flooring that can be preserved.
I think it’s important not to expect to save a lot of money with a full renovation just because the basic structure is already there.
I would also demolish a derelict property. But be careful with contaminated sites, as disposal can come as an unpleasant surprise. A solid older building that isn’t TOO old could definitely be renovated, and that would likely be much cheaper than building a new house. Especially since there are very affordable loans available for renovations. On the other hand, a new build cannot be done below a certain minimum cost.
Purchasing a property in need of demolition can make sense if the plot of land is desirable and there are no other suitable, build-ready plots available in the area. The purchase price should then be based on the land value minus the demolition costs. Before deciding to buy, the building and planning regulations for the property should be thoroughly reviewed to avoid future restrictions on a new construction project and to exclude any encumbrances on ownership as the new owner.
Renovation only makes sense if the existing building has a solid structural condition. Upgrading a dilapidated older building to meet current energy standards (building insulation), sustainably eliminating building damages or moisture problems, and adapting the layout through conversions or extensions to your personal living requirements is generally significantly more expensive than building a new house of comparable size. Such a renovation is complex and should not be carried out without an independent and comprehensive renovation plan that takes the entire building into account.
More detailed information can be provided in an on-site consultation before purchase.
Renovation only makes sense if the existing building has a solid structural condition. Upgrading a dilapidated older building to meet current energy standards (building insulation), sustainably eliminating building damages or moisture problems, and adapting the layout through conversions or extensions to your personal living requirements is generally significantly more expensive than building a new house of comparable size. Such a renovation is complex and should not be carried out without an independent and comprehensive renovation plan that takes the entire building into account.
More detailed information can be provided in an on-site consultation before purchase.
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