You love the location and the price is well under budget, the problem is, the property is a dump and in serious need of modernisation.

Or perhaps your home is looking exceedingly old and tired and is in desperate need of a serious makeover…..

So what’s best? Renovate the property to its former glory, but more suitable to your needs, or detonate and create a new home?

Here are some points for you to consider:

Look at your budget

First and foremost, you do need to do some sums – you need to think about the costs of renovating or detonating and what exactly fits with your budget. And remember, no matter how good you are at budgeting, add a bit more on, as regardless of which route you decide to take, it will cost more than you originally budgeted for.

Houses have hidden secrets hiding behind walls, and rock has a habit of appearing when you’re digging foundations.

A basic new-build house will set you back at least $200,000. Obviously the bigger the house, the more it will cost. You’ll also have to factor in other expenses, such as demolition costs, and any costs incurred for living elsewhere and planning application fees.

Know what you want

Is it an extra bedroom, a modern kitchen and bathroom and maybe knocking a wall out to make a larger living space you want? If so, a renovation might be simply in order.

However, if the house has for instance, major structural issues that are costly to correct, or perhaps has a seriously odd and/or inconvenient layout and it will be hard to make it suitable to your lifestyle, then detonation may be the way to go.

Think long and hard about your lifestyle and what your needs are, and seek the professional advice from a professional, such as an architect or builder before you make any major decisions.

Planning permission

This is a big factor to consider when looking at any sort of major overhaul of a property. What you have in mind for the property or land might not be aligned with what the local council has planned for the area.

Any house with a historic listing will need special permission to change and there will be rules and regulations governing what you can do.

And you may need to be mindful of neighbours; they may not appreciate a 2-storey house now overlooking their back yard; they could raise objections which could mean your plans won’t get through or you’ll need to address privacy issues such as using frosted windows on that side of the house.

Resale value

Take a good look at the other properties in the neighbourhood. Are they modern or are they older properties with unique and character-filled features?

It’s worth taking a long hard look at what you’ve got; when it comes to selling, period features or other character elements may potentially increase its value once it’s been renovated, or at least give your property the edge over other properties in the area.

We do more than sell and manage property; we also love sharing our knowledge with you so you can make informed decisions. We believe we go above and beyond expectations which is why we are one of Newcastle’s longest established real estate companies. Give us a call on 02 4954 8833 or pop into our Cardiff office for a no-obligation chat. Alternatively, send us an email to: mail@apnewcastle.com.au – we’d love to hear from you.

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