Lifestyles change at major points in life, such as marriage, childbirth, and children becoming independent. When that happens, a home can become less comfortable to live in. In those situations, one option worth considering is “renovation.”This article explains in detail what renovation means, how it differs from remodeling, and the benefits it can provide.
What kind of construction work is renovation?
Renovation refers to improvement work that preserves the usable parts of an existing home while restoring and enhancing its functions and value. It can include upgrading water areas and electrical and gas systems, removing impractical layouts, and redesigning the home to better fit the way you live.
The difference from remodeling lies in the purpose. Remodeling is work that repairs problems and returns something to its original condition, whereas renovation improves value, functionality, and convenience even when there are no particular defects.
What benefits can renovation create?
Flexible design tailored to your lifestyle
Columns, beams, and the foundation cannot be changed, but walls, floors, and layouts can be modified extensively. This can range from changing two 6-tatami rooms into one 12-tatami room to creating a preferred design style such as Scandinavian or modern Japanese.
Lower costs compared with building new
Rebuilding as a new home can easily cost tens of millions of yen, including demolition and removal expenses, but even large-scale renovation can keep costs lower than building new. It is a practical option for people who want a home that matches their lifestyle while keeping their budget under control.
Improved property asset value
A building’s asset value peaks on the day it is completed and declines year by year. However, when renovation restores and upgrades the property’s functions, it can raise the asset value even of a pre-owned home. It can also help maintain sale prices when the property is sold.
A much wider range of property options
A property that is “well located but has outdated facilities” can still become a viable option if renovation is part of the plan. One major advantage is being able to search from a broader pool than with newly built homes and find a property in the ideal location and price range.
What types of renovation are there?
Full renovation
A large-scale renovation that covers the entire home. This also includes skeleton renovation, where the property is stripped back to its structural frame.
Full-order renovation
An approach that allows complete freedom of design, from layout to equipment and fixtures. While it offers a high degree of flexibility, meetings tend to take longer and budgets can expand more easily.
Semi-order renovation
An approach in which you choose from equipment and interior materials prepared by the contractor. Costs are clearer and easier to control, but additional option fees may arise if you have very specific preferences.
One-stop renovation
An approach in which everything from property search to renovation work is handled by a single company. This makes planning more efficient and also makes it easier to balance the purchase cost and renovation cost.
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Frequently Asked Questions (FAQ)
Q. How much does renovation cost?
Partial renovation can start from several hundred thousand yen, while full renovation can cost anywhere from 5 million to more than 20 million yen. Skeleton renovation is especially expensive, but even when combined with the purchase price of a pre-owned property, it is often still less expensive than building new.
Q. Where should I live during renovation?
You will need temporary housing during the construction period, which is typically 1 to 6 months. It is important to treat temporary housing costs as part of the total renovation cost and include them in your financial plan.
Q. Can apartments also be renovated?
Yes, they can. However, shared areas such as exterior walls, structural components, and common facilities cannot be changed, and there may also be restrictions under building management rules. It is important to check with the management association in advance and understand the permitted scope of work and the approval procedures.
Q. Will renovation increase fixed asset tax?
Large-scale renovation that involves major extensions or alterations and requires a building confirmation application can affect the assessed value used for fixed asset tax. Before starting work, we recommend confirming this with the contractor and building a financial plan that also accounts for any change in tax burden.
