Renovate or demolish and rebuild?

Discussion in 'Buying & Selling Real Estate' started by Sandra, Aug 21, 2015.

  1. Sandra

    Sandra Active Member

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    In some regions, there are mainly old houses and buildings in general. Some persons who buy/invest in these properties and decide to establish homes decide to renovate these old buildings and expand if necessary. However, some just demolish the entire structure and rebuild. Some would think that it's better to just renovate the old building and not waste the materials already there but then maybe it could turn out very costly just the same. So which is the better option?
     
  2. baudwalk

    baudwalk Senior Investor

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    No easy answer IMHO. Aside from questions of structural integrity, the electrical and plumbing would be of major concern to me. The age of the structure may affect the decision of what to do.

    Foundation issues, roof, leaks, mold, load-bearing wslls, sub-floors all have to be looked at. Some issues aren't immediately obvious.

    I am particularly concerned with electrical. Homes today have more appliances and "toys" than even 20 years ago. Depending on the age of the house, there may be knob-and-tube wiring or wiring not meeting current code or dangerous shortcuts by a previous homeowner. My first house, built in the 60 by Levitt, had aluminum wiring. I cringe at that thought now.

    No easy or best answer here, not to mention zoning and building code changes over time. HTH. YMMV.
     
  3. Rosyrain

    Rosyrain Senior Investor

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    It really just depends on the condition of the home. Some homes and property are sold with the rationale that the buyer will tear down the house and rebuild. If the house is structured sound and all, it might be a good idea to renovate it because that would be cheaper than building a new one.
     
  4. Corzhens

    Corzhens Senior Investor

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    My former boss is in the build and sell business of real estate. He always say that when the foundation of the house is good then renovation can save you money. But when the foundation is in question, even if the house if fairly new, demolition should be your recourse. It is easier to build a new house when talking of architectural soundness. And my former boss would not compromise the quality of his product since he usually sell the houses to his circle. So for the thread title, it is a matter of the good foundation or not.
     

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