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I have a 1960s ranch that is pretty much in original condition. It is located in a neighborhood where all of these 1960s ranches are being torn down and new, much larger homes are being built. i want to ask you experts whether you think i should renovate my home, or tear it down and build new?
my goal is to live in this location for the rest of my life, IE, the next 30 years
the bathrooms and kitchen of this home are becoming a big pain to deal with, and the drain pipes in this home will likely need replacing soon. also the home is inefficient as it does not have insulation in the walls etc.
however, i feel like renovating the home, and the bathrooms and kitchen, is a big waste of money if i will not get it back later
as it stands now, these homes, even if renovated, are selling for no more than 500k and they are ALL being torn down
new homes are selling for 2 million
so people who are selling renovated homes are getting 500k
people who are selling new homes are getting 2 million (minus the 200-300k it costs to build a new home)
do you think i should renovate this home, or tear it down?
so people who are selling renovated homes are getting 500k
people who are selling new homes are getting 2 million (minus the 200-300k it costs to build a new home)
I think you are greatly underestimating the cost to build these homes that are selling for 2 M.
So, you are saying that someone could buy a home in your area for less than 500k (assuming that because you say renovated homes sell for 500k) and then put 300k into in, and immediately turn it for 2M? An instant 1.3M profit?
If so, please, please tell me where you live. I'm in.
One very important thing to consider is permitting. Most owners around here just "renovate" until it's almost new. Builders with money tear down and replace and charge a super crazy amount of money (and get it) for their new home. Do you have the money to permit a tear down?
First off, if you're planning to live in it for the rest of your life, even if you tear it down and build new, it will no longer be a "new" home. Second, where will you live while you are rebuilding the home? You need to factor those costs into the new build as well. Third, if you renovate, you can have it done at your pace rather than have to do everything at once for a tear-down and rebuild. Convenience does have a benefit.
You've said you want to live in the home for 30 years. Even if you spent the money to renovate kitchen and baths, they will be outdated in 30 years. You won't get that money back, but you will have the pleasure of using them for 30 years. The same idea applies to tearing it down and building new. In 30 years it will be dated, but you have the pleasure of living there for 30 years.
yes, that is what is happening in the Beach Park section of South Tampa
now, most of the homes they are building are bigger, 5000 sq feet
i do NOT want a new home that big
but even if i build a 2500 sq foot home, new homes in that range are selling for close to 1.5M (due to popularity of neighborhood)
let me put it this way: i get letters weekly from builders and developers asking if i want to sell my little shack
if it's going to cost $200-$300 per square foot then that is another story, not gonna do that
i guess i need to contact an agent? do i contact an agent first or a builder? to get more specifics on what this would entail?????
here's a good example of whats going on
in 2013 an old 1960s ranch home like mine used to be at this address
someone bought it for 400k and tore it down
and built this
and yes i would have to rent a place while i build.....
i dunno, i can't make the bedrooms in this house any bigger, i can't make the baths any bigger
there's a lot of reasons to tear down
including elevation
my neighborhood is in a flood zone; if i tear down and rebuild, the new house could be built higher and out of the flood zone
thereby reducing insurance costs etc
Last edited by sinatras; 01-18-2017 at 06:37 AM..
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