Old property: To renovate or to rebuild?

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Property owners often wonder what to do with an aging property on a good location. They have vastly different options.

The choice to demolish and then rebuild from scratch is more popular among people with properties in high-value areas. They can afford to take on the extra costs of rebuilding and expect to recover from the extra expenses with the lease or the high resale value of the property.

Meanwhile, other people go with simple renovations for practical reasons. They may not have the time or extra money to spare for the destructive and costly do-over but they know that they can still build the home of their dreams a home improvement at a time.

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Of course, there are other factors that come into play. There are times homeowners’ dream homes do not agree with reality, so rebuilding becomes absolutely necessary. Meanwhile, others may find that the existing structure can work give or take a number of renovations, making a vastly improved structure at a lower cost come to life.

For those still stuck at the crossroads of this decision, experts suggest first examining the type of property that currently stands. Post-war construction bungalow types, for instance, are better off demolished and replaced with a structure with better features.

After that, analyzing the costs is the next logical step. While costs of renovations may seem more manageable, builders often use the difference in rates for new-builds and renovations as a strong argument for going with the ‘demolish and rebuild’ option. Doing research on the tax rates in their area can help the property owner determine if the difference in costs between the two options is truly significant.
 

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Galloway Custom Homes aids property owners in Muskegon, Michigan in transforming their property and building their dream homes. For more information about the company’s services, visit this Facebook page.