A knockdown rebuild offers one of the best options for creating a custom home design, especially if you don’t want to move away from your current location.
Instead of spending time and money on a new land purchase, you can demolish your current dwelling to start with a clean slate. But as with traditional home construction, this project entails several considerations, from site preparation to home design and rebuilding. These prices are likewise affected by your location, as living costs vary from state to state. For instance, a knockdown rebuild cost in Sydney may be more expensive than in Adelaide.
Knowing how much you’ll spend is key to a seamless home construction project. While exact prices are difficult to determine, it’s possible to create estimates based on the primary cost factors.
If you’ve asked yourself, ‘how much does a knockdown rebuild cost? ‘ we’re here to help you.
Primary cost considerations for a knockdown and rebuild project
Calculating the cost of a rebuild project can be easy if you know the main cost considerations included in the activity. As a good starting point in determining knockdown and rebuild costs, you’ll need to factor in design, demolition, site preparation, construction costs, and incidental expenses.
Each of these factors is further explained below:
- Design costs
Drawing up design and layout plans is paramount in every home construction. Builders would want to know whether you have a plan drawn out for your knockdown and rebuild project so they can look at it and see how much it may cost you.
If you don’t have one, discuss your design preferences and ideas with a design professional or contractor so they can create one for you. You can ask them to design a bespoke home based on your discussion or review their portfolio for design inspiration and options.
Design and drafting cost estimates typically range from AUD$3,000 to AUD$5,000, depending on the dwelling style.
- Demolition costs
Knockdown rebuild cost considerations won’t be complete without demolition price estimates. As a reference, demolition charges start at AUD$ 12,000 and could increase to AUD$ 40,000, depending on job complexity and scope.
Tasks requiring additional charges include handling hazardous materials like asbestos, removing huge trees, and other massive structures like fences, sheds, etc. Dwellings built before 1980 likely contain asbestos, which must be removed only by a licensed removalist, significantly bumping your demolition expenses.
- Site preparation costs
Site costs likewise vary based on your property location’s topographic conditions. Homeowners are charged more if their block is steep, sloping, or has rocky sections, as site preparation requires heavy equipment for excavation and landfilling services. And in some cases, a retaining wall may be needed to be built to retain soil in steep project areas.
In addition, extra charges may be imposed on homes near national reserves or flood-prone areas to meet regulatory requirements and for additional assessments, like bushfire risk. According to recent estimates by an aggregator website, site work is estimated at AUD$12,000 to AUD$25,000.
- Home building costs
Because dwellings vary in shape, size, and design, their prices vary wildly. As of April 2022, Australia’s average home building cost is AUD$473,000. This amount may be enough to build a standard dwelling, but a bespoke and bigger-sized home can cost much more.
Multiple factors affect the final cost of a home, including:
- The cost of materials
- Living costs in your location
- Design complexity
- Site Access
- Home features (fixtures, amenities, etc.)
- Building size
Moreover, the size and design of your home and the tasks required to build it can significantly impact the final prices. So do material costs, which come in various finishes, styles, and sizes that can further pull the prices up or down.
For instance, a three-bedroom house can cost AUD$1,300 per square meter on a clear block built with standard materials. The amount could cost up to AUD$600 more per sq. mt. for top-grade materials and luxury finishes.
What you put inside your home can likewise significantly add to the cost. For instance, integrating luxury fixtures, a smart home system, and other state-of-the-art technologies can substantially increase the costs of a knockdown rebuild project.
- Incidental costs
When creating a budget for any project, a good rule of thumb is to allocate around 5-10% of your total budget for incidental costs. This contingency fund can help cover the extra charges in all stages of a home rebuild project, a few of which are mentioned above.
Similarly, homeowners may need to pay for the following:
- Council fees
- Building permits
- Inspection fees
- Soil testing
- Risk assessments
- Insurance
- Taxes and other charges
- Occupation certificates
- Temporary relocation costs (i.e., hotels or short-term rentals)
- Storage fees
Sometimes, builders will include these costs in their quotes. So, asking for a written quote and examining the charges is best to avoid double payments.
Final Words
Determining the exact costs of a rebuild project can be challenging because several elements impact the prices throughout the project’s lifespan. These factors are discussed above, with prices from various sources to help you arrive at reasonable estimates.
If you’re still wondering how much it costs to knock down and rebuild a house, visiting a trusted and reliable builder is your best option.
