Drafting in Sydney: Should I renovate or demolish Part 3 - Investment vs Own-occupied
Getting along with the last 2 factors about whether a building owner should demolish and rebuild or to do renovation, today we will share the idea of the purpose of the work- investment or own-occupied?
Sometimes building a new house is cheaper than doing extensions and renovations. The reason behind this is because the labour and difficult of restoring the existing whilst adding the new can cost a lot. Therefore starting from scratch may seem much easier.
However, it is important to any person to consider the purpose of the build, whether it is for an investment (rental income) or for yourself being the end-users.
From an investment point of view, it may be much wiser (if the existing house is still in good condition), to do an extension/renovation; the justifications are:
1. Shorter time to build
2. Cheaper in construction cost
3. Cheaper in council fees/ paperwork / design fees
4. High equity
5. The need of mortgage may not be necessary
However, we are not saying that building a brand new home is not ideal, but it is comparatively higher in cost and time.
It is indeed important to speak to a residential drafting team to discuss the options for your property, prior to doing any work.