Being an adult means having a place to stay while building your own life. While renting is the most viable solution for most, owning a house should be on every person’s wishlist as soon as they can afford it.
Unfortunately, the rising costs fuelled by market, supply, and complex land issues have made home ownership more challenging than it should be, including in countries like Australia. According to a March 2022 press release by the National Housing Finance & Investment Corporation, the country’s supply deficit is projected at 20,000 annually from 2025 to 2032.
Amid these challenges, homeowners and property investors have found knockdown rebuilds a great option, especially in addressing land availability issues.
If you’re wondering what knockdown rebuild homes are or if it’s the best solution for your property needs, continue reading this article to help you decide.
Answers To Common Questions About Knockdown Rebuilds
More investors are spending on knock down rebuilds for many reasons. An outdated property sitting on a lot is cheaper than a newly-built home. Destroying it and constructing a modern and customised property allows future homeowners to reap the benefits of having a dwelling that fits their preferences and lifestyle.
- What Does A Knockdown Rebuild Mean?
A knockdown rebuild involves wrecking an existing property and reconstructing a new one in the same location. Like a traditional home-building activity, it enables owners to start on a clean slate and integrate their design preferences in the knockdown rebuild house plans.
Moreover, this home construction method skips the hassles of finding, buying, and preparing the land, which has become more challenging and costlier in recent years because of availability issues.
- Why Do Property Owners Knock Down And Rebuild Homes?
A knockdown rebuild is often the more sensible solution for owners who want to make substantial changes to their homes but don’t want to relocate. This holds true when the existing dwelling is old and susceptible to structural issues.
Building a new home in an existing property lets owners enjoy larger living spaces without necessarily spending too much and customise them according to their needs, preferences, and budget. New dwellings are less costly to maintain, come with warranties and can be installed with new technologies or eco-friendly fixtures.
- Why Should I Consider A Knockdown Rebuild?
As mentioned above, future homeowners have struggled to find vacant residential lots. If you’ve found the best location for a permanent dwelling but need to upgrade for various reasons, a knockdown rebuild can be the perfect solution.
For instance, if you have a growing family or are worried about the structural integrity of your current residence, a renovation is likely inappropriate. Spending an arm and a leg for extensive repairs could cost as much as knocking down and rebuilding homes in some cases.
- How Much Does Knockdown Rebuild Homes Cost?
Various cost factors impact a knockdown rebuild project. These include:
- The demolition cost
- The size of your future home
- The number of rooms
- The style and design
- Scope of work involved
- The type and quality of materials to be used
- Site conditions and access
- Permit and other related fees
Australia’s home construction project cost is AUD$473,000 as of early 2022.Meanwhile, demolition costs can run up to AUD$40,000 maximum. It would be safe to prepare at least AUD$600,000 with such cost considerations, including incremental expenses like storage and rental costs.
While it may be costly upfront, embarking on this property-building method helps you save in the long term. For instance, you don’t have to pay for agent’s fees and stamp duties. You’ll also see lower power bills with a more energy-efficient home and avoid costly renovations for a rundown property.
- Knock Down Rebuild Versus Renovation: Which Is Better?
If you’ve found the perfect place but need to upgrade your living space, you can choose between a renovation and a knockdown rebuild. Cost-wise, renovations are cheaper, but costs can accumulate if you have an old home.
A renovation is ideal for making small changes, like adding a room or expanding the kitchen, to your existing property. However, if you require considerable upgrades, like multiple rooms, or want to replace a 50-year-old dwelling, knocking down your place and erecting a new structure is the better option.
- Can I Get A Loan For Knockdown Rebuild Homes?
The short answer is yes. Financing institutions have several loan products available for a variety of home-building needs. Construction loans are the most preferred financing solution for rebuilding a property, including this type of project. Alternatively, some banks allow borrowers to access home loan equity and other refinancing options.
Discuss financing options with your bank and get pre-qualified to know how much money you can spend for your knockdown rebuild project.
- What Are The Processes Involved In Knockdown Rebuilds?
Home construction in Australia lasts anywhere from four to twelve months, excluding the land acquisition process, which can stretch for three months or longer. Comparatively, knockdown rebuilds can take eight to twelve months, although using modular homes cuts the entire process considerably.
Constructing knockdown rebuild homes typically involve the following steps:
- Evaluating the site
- Discussing and creating knockdown rebuild house plans
- Pricing the project and drafting the contract
- Paying the deposit
- Submitting documents and other requirements
- Inspecting the property
- Meeting with in-house interior designers
- Contract signing
- Processing permits and other requirements
- Construction proper
Like any other home-building project, inclement weather, material availability, and changes in work requirements can delay a rebuilding activity.
Knockdown rebuilds can sound daunting. But there are ways to make it less stressful. The facts above help you understand how it works, giving you the confidence to prepare for and address potential issues.
Most importantly, choosing a reputable contractor prevents you from experiencing significant problems and disruptions. An experienced home builder ultimately gives you peace of mind when taking this route in building your dream home.