Here at Leanhaus, we get many requests about upgrading existing homes to a higher standard of performance. In addition to a general goal of a more functional, modern home, the request is often driven by a desire to be more comfortable in summer and winter, to save energy, and to create a healthier indoor environment.
However, after buying an older home, it’s always important to consider whether you’ll be better off renovating or demolishing and building new. Deciding which option is best for you is entirely dependent on your needs and circumstances. To help you come to a decision, there are a few things you can consider to determine whether a project is best suited to a renovation or a new build:
The original building
No one wants to live in a home that isn’t functional and doesn’t suit their needs. For this reason when considering renovating, it’s important to ask if the fundamentals of the existing building are sound. Think about whether the solar orientation is correct, or whether it would be easy to modify the layout of rooms. You should also think about the building materials, and whether they will allow for the changes you want to make. For example, it’s more difficult to add effective insulation to brick buildings than timber ones. If you’re unsure, providing detailed drawings and photos to your architect can help them advise you.
Another thing to consider is whether the building is heritage listed or there are character or design attributes that make the structure worth retaining. Maybe it has a unique staircase that would be costly to replicate, or a roof height or reduced seback that would not achieve planning approval today.
The budget
As surprising as it may seem, if you have a tight budget, it might actually be more cost effective to start from scratch with a new build. This is because from a builders point of view, working with an existing structure requires more hours of supervision, more uncertainty in hidden parts of building, and a greater risk to their costs and construction program. In general, more risks attracts higher building margins and higher estimates for time required on site and this will be reflected in the cost estimates. New builds are often simpler to plan and manage with a more predictable work flow and timeline.
Properly upgrading and renovating a home will cost nearly on par with a new build: $3500 - $4500 per square metre, but where additional rooms are added the rate can spike to upwards of $6000/sqm for the new spaces. (2023 prices)
The brief
What level of upgrades do you want? If the home you’re renovating only needs relatively minor alterations or additions, it may be clear that renovating will be more suitable than demolishing it to build new.
If you’re considering more significant upgrades, deciding what these are and what you want from the final home will be important. Are you mainly focused on comfort improvements or do you also want significant energy savings? Achieving Passive House standards of airtightness may not be feasible when renovating an existing home, but there are other options that are still effective.
Always consider the age of the existing structure. In our experience, by the time a house is a candidate for major refurbishment it tends to be so far behind modern standards and will have deteriorated significantly enough that it’s getting close to the end of its functional life. To provide another 40+ years of service life would require major intervention to ensure it continues to function as needed.
Timing
How long do you have to complete your renovation or new build? If you’re pressed for time, a renovation can be considerably quicker. This is because a new build would require more council approvals for demolition, statutory approvals and major construction activity.
Value of the existing home
The actual value of the existing structure is also important to consider. We recommend getting a valuation on the existing home versus the land value to get an understanding of the value of the structure itself. If the existing structure has already depreciated close to zero it might make your decision significantly easier. For a home that still has some value, a renovation may make more sense to retain the existing value.
Sustainability
Typically, it’s assumed that renovating a pre-existing home is more sustainable than a new build but, as is often the case, it’s much more complicated than this. When considering the whole of life operational energy, a new build that uses sustainable materials and features can, in fact, be more environmentally friendly in the long run . This is because the enhanced performance allows the home to be designed to require much less energy throughout its lifetime.
If the original structure is oriented correctly and allows for plenty of sustainable features, renovating may be close to, or on par with the environmental impact of a new build. If it’s difficult to make the necessary changes, however, then a new build might be more appropriate if sustainability is a key driver for you.
We’re always here to help. If you’ve considered all the factors here and need more advice, or want to get started on your renovation or new build, be sure to get in touch!
Words by Ellie Prober with Ben Caine