Is Rebuilding a Better Investment Than Renovation?

Many homeowners contemplate a rebuild on their home when moving becomes a viable discussion point for their family’s future. Homeowners quickly find that their growing or changing family outlives the usefulness of your first or midlife home. Whether your family is expecting a new baby—or even twins—or you’ve got children moving out in order to begin their own adult life that lies ahead, changing the structure and layout of your home is an ongoing consideration for many homeowners.

Rather than moving, many homeowners choose instead to conduct renovations in order to recreate the energy and feel of their current home in a way that suits these changing needs. However, this isn’t the only option. More and more homeowners are finding that a knockdown rebuild suits their needs better. This is sometimes completed in order to recreate the home as an investment property or to rebuild a home in the style of a dream home. Whatever the reason, rebuilding a home from its foundation is often a great investment for your future for a variety of reasons.

Investment knowledge is crucial to making the right decision

n order to identify whether your home would benefit from a knockdown rebuild project, it’s important to understand what you intend to do with the property once it has been restored to a habitable home. Many knockdowns are the result of a homeowner looking to recreate a space as the perfect rental property. Buying a fixer-upper that has suffered from neglect but boasts a fantastic location can act as the perfect investment property for creating rental income. But the structure may be beyond repair and require a total rebuild. In this case, a knockdown might be the best way forward. Going this route can see the old structure removed in short order and a totally new home begin to take form on the space in no time.

The best way to evaluate this course of action is with the help of well-rounded investment research. Sources of knowledge like WealthRocket are great one stop shops for information on investment opportunities and return on investment calculations. Knowledge is the best way to engage with any investment asset class, yet when it comes to real estate, it’s crucial to understand the entire spectrum of the marketplace in order to make a smart financial decision in pursuit of a high-quality return on your investment.

Rental income is predicated on keeping costs as low as possible throughout the year, which often means that upfront spending can stave off future repairs for months, if not years. Of course, a home will always need window and roofing repairs, as well as replacement appliances in the kitchen, bathroom, and air conditioning. These are inevitable repairs that will eventually fall to a property owner as the property continues to age. A rebuild is a perfect way to negate these requirements for the foreseeable future. Many of these appliances and features of every homestand to last for fifteen or more years, so building a totally new home to rent out in pursuit of a second stream of income can provide you with at least fifteen good years before the more expensive replacement work begins to enter your radar as a property owner. The only way to understand the full spectrum of benefits versus expenses with this model is to conduct extensive research, however, so leaning on your trusted sources of information is crucial.

Rebuild into the perfect dream home for your family

Another great use case for a rebuild is the creation of your family’s dream home on the perfect lot. Real estate agents are quick to suggest searching for homes based on location first and then honing in on the features and configuration specifics of the home. This is because you can change virtually everything within the home’s space, but you can’t remove traffic noise from the road outside your front door or build a school within walking distance for your children.

Therefore, a rebuild is often the best way to create your dream home without leaving that perfect neighborhood that your family has settled into. Finding the perfect location for your home is often more important than the interior space that a home offers because of this fact, and many families choose to purchase homes based on these external factors that can’t be altered in order to lock in a home that suits their lifestyle needs before turning the hammer on the home and renovating or rebuilding it to suit their needs.

Homeowners looking to reimagine the energy of their homes often begin by planning out a totally new kitchen. This space operates as the hub of the home, and the feeling generated here balloons outward into the remainder of the home. A high-quality kitchen with lasting amenities and appliances is a great way to introduce luxury and long term comfort into your daily routine. A granite countertop is an inclusion that many homeowners love to place in their kitchens because they will typically outlive their own time in the home. Similarly, the use of Chesserfeld area rugs paired with hardwood flooring can create a fantastic foot feel across the entire space of your home and even make the interior feel larger as you traverse from room to room. Introducing these qualities of life upgrades can really improve your overall comfort while at home—something that has become increasingly important during the lockdown measures that have kept us all within the confines of our homes for long periods of time during the Covid-19 pandemic.

Rebuilding your home on an existing parcel of land is often the best way to get the best possible mix of advantages in your home. Rebuilding will give you a completely new structure on a space that has come to represent the nexus of your daily activities. Your family has created memories and links to this community, and a rebuild can help you preserve these for years to come while also giving you a new home to enjoy at the same time.