Advantages and disadvantages of renovation or new build at a glance

Benefits of renovation

• The soul and charm of the house is retained

• Lower investment costs if the fabric is good

• Simpler approval procedure (lower risk of objection)

• Shorter build time

• The garden, including old trees and plants does not need to be removed

• Step-by-step renovation is possible, so that you can still live in the propert

Disadvantages of renovation

• Prior to a renovation, an inspection by an expert is required

• The existing spacial design cannot be changed at will or updated to today’s demand

• Complete renovation is often more expensive than a new build

• Even after renovation, energy efficiency is not comparable to a new build

• Increased susceptibility for mould and humidity

Planning a new build and realise living dreams

Old houses are often located on large plots with generous surroundings. If the large potential has been identified, it is not only possible to build a single-family house, but multiple family dwellings are also an option, which presents an interesting potential use for investors and project developers in particular.

Benefits of a new build

• Contemporary building and spatial design, modern and individual architectural style

• Meets all up-to-date standards regarding energy efficiency, building technology, and heating system

• In most cases improved / increased utilisation is possible (increase in value)

Disadvantages of a new build

• Higher costs, long planning and build time

• Investment costs are not tax deductible, investment costs are taxable as a whole

• Varying decision-making options may also be overtaxing​

Analysis of the current condition

During the first phase of the project and based on a professional assessment, initial appropriate measure are instigated, in particular, with regard to energy efficiency. At the same time, it is paramount what condition the building is in and how a reduction in energy consumption can be achieved with renovation. There are numerous service providers with various tools, which prepare an analysis based on quantitative data. This analysis cannot, however, replace an assessment by a professional with on-site consultation by the expert based on individual building characteristics. In any case and as a basis of all decisions, substantiated energy consulting on-site by a GEAK expert is to be recommended.

In any case and as a basis of all decisions, substantiated energy consulting on-site by a GEAK expert is to be recommended. The GEAK (building energy certificate of the cantons) is a 4-page document, which presents the energy condition of a building in a clear way. It is a standardised calculation that is uniform across Switzerland. This energy label includes basic recommendations for refurbishment measures and differentiates between the efficiency of the building shell and the overall energy efficiency. Every building is different. During the inspection on site, experts recognise weak points and identify possible energetic potentials in the building shell, hot water preparation, as well in the electrical loads. The expert report arising from this also forms the basis for potential applications for grants to the federal government, canton, and the municipality.

An important part of the analysis of the current condition is the inspection regarding potential contaminated sites (asbestos) as well as checking the seismic safety (in case of apartment buildings) and the fire protection concept. The disposal of contaminated soils and potential reinforcement of the foundations as well as the support structure in connection with seismic safety can be extremely costly.

What possibilities can a new building bring instead of renovation?

A thorough examination, which may bring to light the options offered by a new build instead of refurbishment is an important step in assessing whether it is appropriate to renovate or whether a new build should be considered. The more changes would have to be made to an existing building, in particular to the structurally relevant components and the shell construction, the more likely it is that the cash requirements for a renovation exceed the cost of a new build.

New technical facilities and individual living dreams speak for the new building

In addition, there are still further reasons in favour of a new build: Retrofitting of ventilation or thermal insulation may be difficult or impossible, the age of the technical systems as well as problematic substances in old pipes may cause challenges, and small floor plans may make structural changes and comfortable living virtually impossible. In contrast, with a new build, virtually all individual requirements can be met, includes an energy-saving building shell and a needs-based floor plan. In addition, the owner will benefit from a long interval before having to renovate again, as all technical systems are up-to-date. This in turn gives him the prospect of significantly greater cost security. It would be recommendable, however, to involve an architect right from the start. Various areas may require reputable and, in particular, professional evaluation.

First steps after decision-making 

Should a new build offer a valuable alternative, then the first step is to check the zoning plan and the applicable building regulations. Coefficient of utilisation, heights, distance towards boundaries, as well as possible primary development plans (design plan, land use plan) are key influencing factors in respect of the construction opportunities on a property. Furthermore, there may be stipulations due to construction law, environmental constraints or in the interest of public health and safety. It is essential to consider private agreements in the form of easements during the planning process, in order to avoid private law conflicts. The building permit will be granted if the building project complies with the Swiss federal, cantonal, and municipal provisions.

In terms of time management, the risk of objection and a subsequent time delay in the building construction should be factored in. Furthermore, it needs to be assessed whether one wishes to live in the building oneself or even whether a multi-family dwelling is considered. This could be appealing, in particular, in financial terms, because the costs are split between several parties or, if a dwelling is let, refinanced via the rent.

In any event, the decision making should be thorough and aided by professionals.