Building a new home, although more expensive, can be profitable if homeowners sell their home before variable interest rates on mortgages rise, or if they take advantage of the expansion of the housing market by selling a relatively new home at a much higher price. One of the most important factors in the cost of renovating or building a new home is the available interest rate. Depending on your needs, renovating your current home can be a small, cost-efficient project to add storage space or upgrade equipment, or a large, expensive project that includes all the rooms in your home. Building a new home with high quality insulation, energy efficient appliances and water saving appliances will reduce average running costs and save you money over the lifetime of your home. Conversion can be the best solution for homeowners who don’t have the money to build a new home or who plan to stay longer and make better use of it for their needs. The economic choice between renovating or building a new home depends very much on how long you plan to stay at home. The cost of the renovation relative to the construction also depends on the location of the house. Rebuilding or building a new home is an opportunity to design a good, environmentally friendly home that can save you money in the long run. There are several options to consider when considering the construction of a new home rather than the renovation of your existing home. Building a new home offers you a variety of neighborhoods and plots in an area where the value of the property is lower but likely to increase. Building a new bespoke house means buying land and deciding what kind of custom built house to build. The cost of the loan depends on the credit from your borrower, the terms of the loan and the interest rates. Building a new home on the same plot as your current home requires demolition of the old home and additional costs. Owners who decide to build their home can finance the project with their savings, a housing loan or a credit line. Rebuilding a home in a community with high real estate tax rates can increase your annual tax bill. Green rehabilitation with energy efficient devices can increase the value of a home more than the installation of basic equipment.