Learn about the pros and cons of building a completely new home, versus building with your existing foundation
BVM Contracting specializes in substantial renovations, custom home additions/extensions, and new home construction projects. In this blog we try to give prospective home construction clients the pros and cons for doing a new home construction project, versus doing a home renovation (i.e. home addition or extension) on an existing home.
In this blog we are going to cover the following subjects:
What is the difference between a New home Construction and A Home Addition/Home Renovation
The major difference between a new home construction and home renovation/home addition is that a new home involves removing the entire existing home, including the foundation, and being left with a giant hole in your property. This allows you to build a completely new home from the foundation/footings, and make any adjustments in depth of the home necessary to fulfill any municipal by-laws (i.e. lower basement, higher ceilings, etc.).
It is also important to note that a house is also considered a new home build in the City of Toronto when you do not maintain a certain percentage of exterior walls. It is usually a safe bet to maintain 51 percent (which usually equates to around two walls) in order to avoid any issues with turning your renovation into a new home build. Working with a designer will help you determine if your wishlist will allow for completing a house as a renovation versus a new home.
What are the benefits/Considerations for building a new home?
Benefits
You get a completely new home with no pre-existing headaches
This one is pretty self-explanatory, but when you build on an existing home and don’t address the existing conditions you will still have to live with them even after your home renovation or addition is completed. This will increase the maintenance costs of your home over time.
You are in control of footprint and finishes
Sometimes there is a lot of value in creating a completely new footprint for your new home since sometimes your existing footprint doesn’t allow you to create the house of your dreams. Creating a completely new foundation will allow you to built it right from the ground up, which is what a lot of luxury home clients want!
Avoided headaches from renovating an existing home
Whenever you are building on an existing home there are existing conditions that may pop up and may add to the cost of the renovation. It is important to note because with a new home you do not have to deal with any of these existing problems because the house is completely new.
Rebate for new Home Construction
A new home construction is always eligible for the Ontario HST rebate. This equates to about $16 000 off the payable tax you put towards the project (every cent counts!)
Considerations
Increased Pre-design, Design, and Permit Costs
The following items are extra costs needed when before the project commences:
New survey (topographic)
Grading plans
Development charges (payable to the City during submission of permits)
Surveying fees during and after the construction (pin footings, as-builts, etc.)
Possibility of Increased utility Construction fees
The City of Toronto requires that the incoming water supply line gets replaced when an infill construction project commences. This means that you have to spend money over-top of spending money on the project itself. When you complete an infill construction you also have to pay for the natural gas disconnect from Enbridge. The good news with this is they give you a new line as a result of the disconnect. Usually hydro is the same type of process between infill and home renovation, unless the meter base is relocated or underground service is a wishlist item.
Increased Cost to Construct
Sometimes, if there are no issues with a home addition of the same size and scope, the cost to construct a new construction home is the same or more expensive than completing a home renovation/home addition. It is important to note though that the contingency needed for a new home construction project is way less than what is usually needed for home renovations/home additions since there are no unknowns. A new home construction is therefore less worry but potentially at more of a cost. Would you rather sleep at night or save a bit of money? We will leave that up to you!
What is BVM Contracting's Recommendation?
BVM Contracting is well equipped to handle Home Additions, Home Extensions, Full Interior Renovations, and Infill New Home Construction projects, but time and time again we find that with the contingency needed for home additions that most of the time you are spending the same (if not more) to try to keep the project a renovation.
BVM Contracting recommends to any client that wants the peace of mind knowing that they will get their house built at the amount agreed to in the contract (and not a penny more) that a new home construction will fit the bill better than piecing together a renovation on an existing home. With the massive reduction in variables, it is the sensible option to choose if you want to have a painless residential construction experience!
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations and custom home builds (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, and new home construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.