Is It Better To Buy Old Or Build A New Home?! - The Builders Edge

More often than not, it is more economical going with a new home construction than it is actually renovating.

And extending any cons though to building a new home.

You might start removing the wall sheet in there and then know that they've laid over asbestos. Those things always pop up. The time you start adding onto something that's existing, you might only end up with 10% of it left. It might be the foundations and some of the frame.

Foreign.

Is it better to build new or to buy old?

Yeah, look, good question. You know, it's often something we get asked about, you know, do I build a new home or you know, buy something pre existing. And look, it's only yesterday actually had a conversation with some customers around this topic there, you know, they're the nest egg has stayed the same. And obviously we've had events happen over the last few years that have changed those circumstances. And now they always wanted to build new but now it might be a potential, you know, better situation for them to go existing. But I guess the nuts and bolts of that, there's that by buying existing you're not going to get exactly what you're wanting, whereas going new you can customize it to suit anything you want and get exactly what you want there. Obviously it's always going to come down to a budget restraint there. But you know, the common pitfall I often find is people will think, okay, it's going to cost them more to build a new home, but then they'll purchase an existing one and think I'll just do some renovations and then I think I will just put 50 grand into it. Then it becomes 100 and it becomes 150 and it just keeps on creeping. And before they know it, they've spent a couple hundred thousand dollars, give or take maybe over a couple of years to achieve that. But if they would have put that money into their new home to start with, they would have built a brand new home for less than what the existing ones actually cost them.

Yeah. So from your perspective, do you, do you guys prefer to sort of do approach a more knockdown rebuild kind of home or do you guys prefer to do like from scratch, a brand new build?

Look for ourselves there, we're quite adaptable. It makes no difference to which way people wish to approach if they're knocking down rebuilding, starting from scratch. You know, it's really comes down to working in with the customer to see what's going to be best suitable for their circumstances specifically.

So if, if they were looking, you know, let's say for example, they found the right block of land, if the right house, it's probably dated, but they'd be looking to do Renault's on it. How can they assess the quality of that home and to make sure they're not buying like a house that's about to collapse.

Yeah, look, that's what it's, that's where you need to sort of start engaging the builder to come out and do a bit of a site inspection and check out the bones at a home to sort of see if it's actually warranted there or not with what their future plans are. But generally speaking, you know, if you start considering spending a hundred thousand, two hundred thousand and onwards on renovating an existing home, you more often than not best taking that money putting it towards you, sell the existing one, put it all together and build something new. Because unfortunately, when it comes down to renovating an existing property there the labor componentry is two or three times than what it would be building new. So the money that you're putting into that existing property isn't exactly going to be seen where all that dollars went, whereas in a new home you're going to see the whole thing.

Are you finding that more and more people are asking this question?

Yeah, look, you know, we do get a lot of questions like this there and for ourselves we are doing a bit more of the, the knockdown rebuild sort of model.

That just comes down to getting the best value for your money. Like we currently have one going through that construction phase at the moment there and we've done several prior to this and there's others still in that pipeline, but one Pacific project right now that they first came to us there and I had these exact conversations, you know, and you know, they thought, nat, well, you know, want to go down the road of extending, renovating. And we went down that path, done the whole exercise and the actual cost that it was going to cost to achieve what they wanted, it was actually more economical for them to knock property down and start from scratch. Yeah, for less money.

So you mean complete knock over completely.

Take it away and start again.

Yeah. Wow.

So it does sound like a big step. And you know, some would say that it's not really warranted there, but if you've got the perfect piece of land and you know, you've got the ocean lapping at your door or beautiful, you know, country property there and you're just wanting to create that forever home, the time you start adding onto something that's existing, you know, you might end up with 10% of it left. It might be the foundations and some of the frames. So, you know, then you spend hundreds of thousands of dollars in remodeling this existing home to still end up with a 90% of a brand new home.

So really, what you, what I'm getting from this is if you can stomach the cost of a new build, it's probably better to go with the new build.

Look, yes, more often than not, it is more economical and viable going with a new home construction than it is actually renovating and extending.

Are there any cons though, to building a new home? Like where?

Well, I guess the disadvantages of going new is there may be a smaller extra outlay in some instances. Sometimes it can be more economical, but it also can be at times there it, you know, you might have to invest a little bit more, but that little bit more you invest in soon comes full circle to itself there. Especially when you're. You're renovating. Like, there's the unknowns that can arise when renovating and extending.

What would, what would some examples be of like, unknowns or hidden things happening?

Look, it's, you know, one of those things. You could go in there and start ripping out the bathroom and underneath the bath or the shower, there's no concrete, you know, it's just sand, dirt, you know, so that before you know it, you're gonna start putting termite barriers in new concrete. You know, so little things like that can start affecting things. But you might start removing floor coverings or wall sheeting there and then know that they've layered over some existing floor coverings or sheeting and it's asbestos. So that can actually start getting quite expensive. Then start removing that. There, there's been instance there that's been active termites in the home. You know, you start peeling the sheets off and then you find nests. So then you just got to continue to keep peeling. So, you know, I've actually had a project there myself. It started off just with a, an ensuite renovation. And yes, there was active termites in there, obviously had to be treated. And then the owners go, well, let's keep going. And it went from the ensuite to the walking robe to the master bedroom to the living to the kitchen. Like it would have been probably 85% of this house.

Wow.

We ended up actually going back to a bare frame. And you know, the customers were fantastic. Like, you know, they obviously wanted things done properly. And I thought, oh well, good reason to renovate and make it all new, you know, so that they, they looked at the positives of a Very negative situation that they were in there. But that was the extent of just what these termites had damaged. I thought, well, if we're going to do that, let's all properly. So it was pretty much, yeah, I'd say every bit of 85 of the. The home was renovated internally and cosmetically externally. Yeah. Gee whiz.

So, so what, what final advice would you be able to give to homeowners who may be considering buying old or building new? And they're sort of on the fence a bit with either direction.

Yeah. So look, if you're looking at making that decision between going between a new home and an existing property there, if you're, if you can find that existing property, ticks all the boxes, you're going to move into it there, you're not going to spend a cent on it. Five years time, 10 years time, you're still not going to, you know, look at putting money into it. That could be a good option for yourself. Generally speaking, an existing home in that five and 10 years time is where you start noticing, oh, you need a new hot water system or the roof is leaking, the gutters are breaking down, you know, needs a new paint, the floor coverings are dated or the bathrooms need upgrading, the kitchen is upgrading, that all start compounding on itself there. It can lead to, you know, substantial costs. So, you know, if you feel you're not going to do any of those things, that may be a good fit. But those things always pop up at somewhere along the line with an existing home going new, you've got your four builders warranty. And then even in 10, 20 years time, 30 years time, it can still be as good as the day they've received it there. If you have your general maintenance in your upkeep, so you're not going to be reaching into your pocket, you know, whereas you would be with an existing home. So you've got to really look at the, the bigger picture. That end game, you know, it's not just what today is, it's okay. Where would things be in 10, 20 years time, potentially.

Yep. Love it. Great advice on that.

No, no problem at all.

Before we wrap up, I will ask you one more question for my builders jar. Okay.

Let'S see what you got this time.

All right, looks like a big one.

Looks like a big one.

Done this one.

All right, I'm putting him behind the couch. Go again.

All right. This one feels new.

We've done this as well. Oh, my gosh.

All right, trifecta.

Third time's a charm.

All right.

Okay, this one's interesting.

How do you handle doubt and uncertainty in your life and what strategies have been most effective for you? This one's a bit more insightful.

I guess there's always doubt that comes across certain decisions and things you do in your life, but I actually turn that into more a positive, motivated sort of style for myself there. It's doubt to me is just a bit of a cloudy, different direction, but maybe a path you haven't been or someone else hasn't been. So it can also be very exciting. You know, it's no different to go into a nice, deep, dark cave and you're pitch black and you need to turn a corner and, you know, you come out to some little oasis there, you know. So for me, it's about managing that and, you know, looking towards the positives and trying to find, you know, the. The best ways that, you know, that change can help me.

That sounds like perspective.

Yeah, yeah, yeah.

Love it as always. Thanks, Norm.

Thanks, mate. Appreciate it. Cheer.

It.