5 Reasons You Should Renovate (and not build)

Many times clients have asked me in initial design meetings, should we renovate or build new? The answer is…yes. For some people, in some situations, renovating is the perfect option. For others, new builds are the perfect fit. Everyone’s situation is different. But here are 5 reasons you should renovate, and not build new.

1. Negative Equity

   This is a somewhat rare occasion, but it does happen, so it bears mentioning. Sometimes, especially in certain, economic dependent swing markets, the cost of construction is so high, and the markets are low enough that once completed, a newly built home may not be worth as much on the market as it cost to build. This situation is called negative equity, and the banks don’t like it at all. This means that the asset that is borrowed against, the new house, may not be worth the price of the loan, depending on what the down payment was. This situation can happen, especially in the niche luxury home market. Sometimes, designers design something that is so niche that it’s difficult to sell.

2. Decision Fatigue - Analysis Paralysis

   If you’re the type of person that is overwhelmed by making decisions and often finds themselves feeling buyer’s remorse, new builds may not be the right choice for you. There are so many choices to make when the building is created from scratch that clients can feel overwhelmed by the sheer volume of choices required. There will still be choices required in a renovation, but the constraints are much clearer, which can be a big help to those who suffer from decision fatigue.

3. Environmental Impact

   This is a very real consideration, between 40-60% of our overall waste is attributed to construction waste, and 40% of all energy produced is consumed heating/cooling buildings. The most sustainable building is the one that’s already built. For this reason, upgrading the efficiency of an existing building is much preferable to disturbing a greenfield site and buying all new material to build a new house, no matter how sustainable or efficient that new house may be.

4. Location

   As urban sprawl continues, the vast majority of available land to build upon is outside of the downtown core, no matter where you live. By renovating an existing home, clients reap the benefits of the proximity to amenities and often a walkable scale in an established neighbourhood. Grocery stores, parks, restaurants are usually accessible by transit, foot or bike if you’re renovating an existing home.

5. Character

   As an antique lover, I am partial to the beauty and patina of an old house, and restoring homes to their previous glory is a passion of mine. New construction is great in so many ways, but for me, the warmth and character of an old home is irreplaceable. The mature trees and landscaping that often comes with old homes shouldn’t be overlooked either.

   So if you’re considering a renovation vs new build, consider some of these points, and maybe there’s something in here that might tip the scales in one direction or another….

   Thanks for reading,

   Aaron