New build vs. renovation?

[Hotzcatz]

I've built a half dozen houses (bash my finger with a hammer level of building) and am currently in the middle of a long term remodel. The remodel is much cheaper than new construction (as long as I don't count my time) but it takes much longer. We picked up a "tear-down" about eight years ago and so far we haven't torn it down. The termites have been well fed over the years but there was enough structural integrity left that we've managed to patch instead of replace. Everything from the floorboards on down has either been replaced, restored or sistered. When we started one out of three support posts were missing for one reason or another. Everything above the floor has been more or less saved, but a lot of it was patch and paint which is a slow process. We do have the oldest house in the neighborhood.

We've been living in it while remodeling so that has slowed things down and there's other things to do instead of working on the house all the time so it is a very slow process. The good parts are the taxes are very low since it is an old building. It also has "character".

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"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson

[Youser]

Thank you all for your suggestions. There is something that appeals to me about working with an existing house that has potential and is in a mature setting instead of starting from a cleared and leveled lot. Yes, more character!

The environmental costs of a new build must be much more than a renovation, even if you do a partial tear down.

John, your new build numbers are very helpful. Someone told me yesterday they heard to build a house on an ocean front lot you need around $170 sq. ft. for just the house (not clearing and lot preparation) but I don't know if he meant during the boom times or now. But that's a special location as ocean front must require higher quality building materials.

So assuming $130 sq. ft is the house only and not the clearing, septic, water tank and/or landscaping I think I can make a comparison like this


New Build 1500 sq. ft. house

Lot: 60,000
Clearing, Septic, Water Tank, etc 15,000
House: 195,000
Landscaping: 5000


Total Cost: $275,000

Now if I bought a similar sized existing house needing remodelling for $175,000 that would give me $100,000 to do the work - teardown, disposal and rebuild. And I would have more mature landscaping as Rob says which would be worth more than what I estimated above.

That seems to be plenty to work with but not if the whole house has to come down and be rebuilt! Of course if a new roof costs $100K then it really doesn't make sense.