As one of the most trusted ground up construction lenders in New Jersey, we have seen people invest in “building new” over “renovations.” However, both choices have their own advantages. Where new construction saves you from surprises, structural facelifts are more feasible when you don’t have an extensive list of must-have features. What else? Keep reading to know the differences and how ground up constructions may be a slightly better selection.
Renovation
Ideally, renovation projects are cost-effective, as most of the structural work is already in place, and you are only making the necessary improvements. Permits for renovations are easily granted, loans are quickly sanctioned, plus modifications are always more profitable than going through the hassles of a new construction project. If a renovation is long due and feasible for your current needs, go for it. But there can be instances when restoration work or face-lifting can be equally expensive as ground-up construction.
Historical buildings or older ones are vulnerable to costly damages and unexpected obstacles. You will have to work around comprehensively to make changes suitable for the existing structure. For example, your contractor might alter the floor plan by tearing down an interior wall, but the foundation remains the same. Besides, newer building codes can have you update a list of things to match the fresh requirements. All of this can affect your budget, and the project can run into unforeseen costs in no time. Not just that, you are restricted to the current boundaries, and there may be no room for greater customization, limiting your prospects.
Ground Up Construction
As the term suggests, ground up constructions are developments happening from scratch. No foundation, walls, or footings ever existed before but can be built in phases, one after the other. These are usually more expensive than renovation projects. Besides, the timeframe can stretch much longer than renovations for the completion of the entire building. A lot goes into finishing the project, including getting the loan from a suitable ground up construction lender, site planning, engineering permitting, hiring contractors, arranging utility and local or municipal requirements, and inspections. However, based on your local market conditions and adequate preparation, ground up constructions can also get reasonable.
The most significant benefit of ground up construction is limitless flexibility. It is the process of putting up an entirely new structure on the allocated land where no other building existed or has been now demolished. You can customize every detail and every corner of the building according to your unique needs while adhering to the specific building codes and other requirements. This flexibility comes at a cost, which can be covered as the local real estate market takes speed.
Note: Depending on the city or municipality you live in, what constitutes a new construction or renovation can vary. For this reason, it is best to double-check your local laws and understand the categorization and codes that may apply to your particular project.
What Makes Ground Up Construction A Better Choice?
Typically, you have three choices for a construction project: Renovation, Building New, or Acquiring Space and Renovating It. Deciding amongst these can impact your costs, schedule, and final structure. What is right for you will depend on your personal goals. Both renovation and new construction have their pros and cons. But if you look at the bigger picture, ground up constructions are far better. What makes them worth the cost, time, and possibilities?
Price: Your budget may be a significant determinant of whatever option may be viable for you. However, if there is no resource limitation, and the cost outweighs other benefits that you get with ground up construction, it may be a better option. Renovation can be phased, with the costs spread out over time. But you can always talk to a ground up construction lender and discuss your loan options to schedule the construction your way. Moreover, if you want to start from scratch, have or can arrange the resources, and wish to construct something unique, building new may be best for you.
Duration: Remodeling projects take less time than newer constructions. So, if you are pressed for time and funds, opt for renovation. But, newer structures are worth the wait and effort. If you want to achieve the best, build from the ground up.
Compliance: Whether it is a renovation or new construction, you cannot avoid regulatory compliances. Even if you are renovating a section, it can land the entire building into noncompliance. Regulatory disputes are often complicated and costly. Therefore, building the premises from the ground up is a much more attractive proposition since you start from scratch with all the administrative compliances in mind.
Design Flexibility: Renovations are time and cost-effective, but grounds up constructions have complete freedom over the design and features. It is like having a blank canvas allowing you to transform the structure into whatever you want. Renovation can put constraints on the design possibilities as you will be working within the existing structural elements. If design flexibility is essential for you, a newer construction would be ideal.
Looking For New Construction Funding? We Can Help!
Deciding between modifications and building new can be a tough call. But, it is a crucial one and drives nearly every other component throughout the project. If new construction is your choice over renovations, don’t worry, we can help you with the resources.
At Real Estate Funding Solutions, we have helped several clients with their property construction. We are a team of knowledgeable ground up construction lenders working to make the process hassle-free for you. When you choose to use our services, you can have the peace of mind that a reputable establishment is by your side. Just select the financial product that suits your investment objectives the best, and we will cover the entire project’s cost, including land costs, free and clear or not.
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CONSTRUCTION INDUCTIONCPCCCM2010B Work safely at heights – contained in CPC08 Construction and Property Services Industry Skills Council.
This unit of competency specifies the outcomes required to work safely on construction sites where the work activity involves working above 1.5 metres from ground level and where fall protection measures are required.https://forktime.com.au/work-safely-at-heights
Even much before the construction ground or land is broken you could get detailed aerial images and videos of your proposed building site.
These images can be used for pre-planning and logistics as well.
For your team to inspect and study or use them on social media or on your website, the series of aerial images taken with the help of construction drone photography could be turned into time-lapse video.There are several ways by which drones can help your construction business grow.
Recording as well as documentation events on site are an essential and valuable tool for all construction contractors.
As you are being able to report and share the status of project in progress with your clients and stakeholders, monitoring any changes over the course of a period, any disputes claims can be handled well in advance.Construction photography by drones is quickly becoming popular, especially at construction sites.
And this saves their time, money and also causes no risk to human life.
