Considering a knockdown rebuild? It’s important to look at all the costs involved and whether this would be the best option for you.
Depending on the location of the build, the current market and inflation, in some instances it can workout to be more cost efficient and an opportunity to customise your home to exactly the way you want it.
On the other hand, some areas may be cheaper to renovate an already built home. In this guide, we look at all the costs involved to help you determine the best solution for you.
What is the process of a knockdown rebuild?
- Research and planning: The first step in a knockdown rebuild is to research your options and plan your project. This involves evaluating the condition of your existing property and the feasibility of building a new home on your existing land. It also involves researching different design options and working with an architect or home builder to create a plan for your new home.
- Permits: Obtain the necessary permits and approvals from the local government. This may involve obtaining a demolition permit, building permit, and any other necessary permits or approvals dependent on your local council
- Demolition: This typically involves removing the structure, debris, and other materials from the site, as well as grading and leveling the land to ensure it is ready for the new construction. You will also need to liaise with your utility company to make sure power and gas is disconnected.
- Construction: The most exciting step is seeing your plans come to life. This involves building the foundation, followed by the framing, electrical and plumbing systems, and finally the interior and exterior finishes.
- Installation: Your appliances can now be installed. This includes your dishwasher, sinks, taps, stove, benchtop etc
- External landscaping: Your home builder usually won’t include landscaping in the contract and sometimes it’s more cost effective to source your own landscaping as it can get quite expensive. Ensure you do your research. If you are planning to put in a pool or pergolas, make sure you have sourced council approval.
What are the associated costs with a knockdown rebuild?
The costs associated with a knockdown rebuild in Australia can be quite significant. It would be wise to be aware of all the costs and carefully budget and plan for these costs before starting your project.
Here are some of the costs associated with a knockdown rebuild in Australia:
- Council Permits and fees: Before you can start building, you'll need to obtain the necessary permits and approvals from your local council. These permits and fees can vary depending on the location and the scope of the project, so it's important to factor these costs into your budget.
- Demolition costs: The first step in a knockdown rebuild is to demolish the existing home. This can be a costly process, depending on the size and condition of the home. In general, demolition costs in Australia can range from $10,000 to $40,000.
- Site preparation costs: After the existing home has been demolished, the site will need to be prepared for the new construction. This may involve grading the land, installing utilities, and other preparatory work. Site preparation costs in Australia can range from $10,000 to $30,000.
- Construction costs: The next step in a knockdown rebuild is the actual construction of the new home. This will be the biggest cost associated with the project, and can range from $300,000 to $1.5 million or more, depending on the size and design of the home.
- Material costs: The building materials used in the construction of the new home can also affect the cost. For example, using high-end materials like marble and granite will increase the cost, while using more affordable options like vinyl or laminate will reduce it
- Finishing costs: Once the construction of the new home is complete, there will be
finishing costs to consider. This can include things like flooring, paint, fixtures, and other finishing touches. Finishing costs in Australia can range from $10,000 to $50,000 or
How long does a knockdown rebuild take?
A knockdown rebuild can take anywhere from 10 to 12 months to complete. It’s also a good idea to allow some extra time for getting permits and other approvals from council as there can be delays.
The council permit phase- Before deciding on a knockdown rebuild, it’s important to check with the Planning and Building department of your local council to see if your land allows for the rebuild. This phase can take a couple of weeks depending on your council.
Demolition phase - Once you have received the ok from your council, the demolition phase can take several days to a few weeks, depending on the size and condition of the existing structure. Other factors that could impact the schedule include the weather and potential obstructions. It’s a good idea to add a few extra days.
Construction phase - After approvals and permits are in place and the land is cleared, your build can begin. This typically involves building the foundation, framing, and installing the electrical and plumbing systems.This final phase can take up to a few weeks, depending on the scope of the work. I.e. size of the house, materials being used, resources available etc.
The interior and exterior finishes phase - This phase will depend on the finishing touches, such as landscaping and appliance installation which have been agreed on. And, can take anywhere from a few weeks to several months.
What are the benefits of knocking down and rebuilding?
It can be stressful and somewhat frustrating, but there are also many positives of rebuilding your home. Including;
- Savings: One of the main benefits of a knockdown rebuild is the potential for cost savings. By using the existing land and foundation, homeowners can avoid the high cost of purchasing a new property and preparing a new site for construction. This can make the overall cost of the project more affordable.
- Custom design: Another benefit of a knockdown rebuild is the ability to custom design the new home to meet the homeowner's specific needs and preferences. This can include choosing the layout, materials, finishes, and other features to create a home that is tailored to their lifestyle and tastes.
- Improved performance: By building a new home, homeowners can take advantage of the latest building technologies and materials to improve the performance of their home. This can include features such as energy-efficient windows and appliances, high-performance insulation, and advanced heating and cooling systems.
- Environmental benefits: By building a new home, homeowners can also take advantage of the latest building technologies and materials to reduce their environmental impact. This can include features such as solar panels, rainwater harvesting systems, and low-VOC materials to reduce air pollution.
- Tailored to your needs: A knockdown rebuild allows homeowners to create a home that is tailored to their specific needs and preferences. This can include designing the layout and features to accommodate a growing family, creating a home office or studio, or incorporating accessibility features for aging in place.
- Increased value: A knockdown rebuild can also increase the value of the property by creating a new and modern home that is more attractive to potential buyers. This can provide a financial benefit when the homeowner sells the property in the future.
Knockdown your mortgage and rebuild your savings.
No matter what your decision is - you’ll need finance to do it and Joust Live Auction is here to help. With Joust Live Auction, lenders and brokers will bid for your home loan in real time. Providing you with real home loan offers and lower interest rates to entice you to select them as the winner. Give Joust Live Auction a go today.
*The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Joust recommends that you consider whether it is appropriate for your circumstances. Joust recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.
