How much does a knockdown and rebuild cost?

Have you found the perfect location but the existing house leaves you less than inspired? A knockdown and rebuild (KDRB) could be the right solution for you.

A knockdown rebuild is the process of demolishing the existing home and building a new one on the same land. It’s a great option for people who love the location of a house but would like a new build.

How much does a knockdown and rebuild usually cost? It varies greatly depending on location and the house you’d like to build but, on average, it costs $503,000 for the combined rebuild and demolition.

In this article, we are going to explore everything you need to know about knocking down and rebuilding a home, from the costs you’ll incur to tips for choosing the right builder. First, let’s look at the costs you can expect.

How much does it cost to demolish a house?

In Australia, demolishing a house typically costs between $12,000 and $50,000.

The price will vary greatly based on factors like the size of your home, the material it’s made of, and the conditions of your site. On top of this, if hazardous materials like asbestos are present, this will add to the total cost.

Here are some of the factors that will affect the cost of your demolition.

• The size of your home: Larger homes will take more time, more staff, and more equipment to demolish.
• What your home is made of: Different materials require different tools, effort, or even specialists. For example, removing reinforced concrete will be more costly than plasterboard.
• Asbestos removal: Due to the hazardous nature of asbestos, this will slow down the demolition and require experts on site. If your home was built between the 1950s and 1980s, it’s highly likely it will have asbestos.
• Site access: Tricky driveways, stairs, or limited access to large equipment on the site will make demolition harder and more expensive.
• Waste disposal: If you live far away from a dump or the demolition waste is difficult to dispose of, this will impact the cost.

Tips for saving costs on demolition

There are some small ways you can save money on your demolition. Here are two ways to save.

• Sell any valuable materials: This could be copper, timber, bricks, and more. What you make from selling these materials can help offset some of the demolition costs.
• Hire a home removal company: If your home is still in good condition, but it isn’t your cup of tea, you may be able to find a company that will relocate and resell it.
• Now that we’ve gone over the costs to demolish your home, let’s look at how much it will cost to build an entirely new house.

How much does it cost to build a house?

According to the Housing Industry Association (HIA), building a new home will cost around $1,800 to $5,000 per square metre. This, however, will depend on the materials you build with, the location, and the design complexity.

This doesn’t include extra costs like an architect, landscaping, building permits, or the cost of preparing the site.

Here are some factors you’ll want to include in your budget.

• House size: Larger homes will cost more to build as they require more time, materials, and builders.
• House design: If you want your house to look fit for Architectural Digest, expect to pay a premium. Buying off the plan will be significantly cheaper than a highly customised design.
• Materials and finishes: Quality hardwood, glossy marble, or strong stainless steel will increase the cost of building a new home. If you’re on a budget, opt for less expensive materials like engineered stone, vinyl planks, or steel.
• Labour costs: Shop around for your builders, but be cautious of deals that seem too good to be true. This cost will also vary depending on where in Australia you live.
• Site preparation: If you need sloping blocks or if you need to replace poor soil, this will require more materials and labour.

Looking to plan a home within your budget? The my Home Planner tool can help you estimate costs based on your unique needs.

What are site costs and why are they necessary?

Your land is a big asset, and it needs to be carefully cared for and prepped for both the demolition and the new build. Failing to do this could lead to significant costs in the future.

Some common costs you’ll incur when building your home include soil testing, site leveling, connecting your home to services, and setting up retaining walls.

To understand the costs you’ll need to pay, it’s a smart idea to conduct a site investigation in advance. This will allow you to make a more informed decision on if you want to go through with your demolition and rebuild.

Other potential costs to consider

Beyond the obvious build and demolition costs, you will likely come across a few extra costs. Here are the most common extra costs you’ll incur.

• Council fees: You will need to pay your local council to apply for planning permissions and inspections. This price will depend on the state you live in.
• Permits: You’ll also need a permit to go ahead with your demolition, construction, and plumbing. Without the correct permits, you could face large fines or have to stop your project.
• Home insurance: Once you have your new home, you’ll need to insure it. If you are using a mortgage, many lenders require this before they let you borrow money.
• Temporary housing: You’ll need to consider where you will live while the project is underway. If you can, staying with friends or family will be the cheapest option. However, many people choose to rent during this time.
• Your contingency fund: The last, but arguably the most important thing you need, is a contingency fund. Building rarely goes exactly to plan, so you’ll want to have 10% to 20% of your budget set aside just in case the project gets delayed or materials start adding up. This fund can either be in cash or an extra amount you're able to take out from a lender.

While these are some additional costs to consider, don’t get discouraged. Doing a knockdown rebuild has a number of benefits. Let’s go over them.

What are the benefits of a knockdown rebuild?

There are a bunch of reasons why someone might prefer to do a knockdown rebuild. Here are a few of the benefits you can achieve with one.

• Stay in the location you love: If you own a home or have found a house you want to buy in a suburb you love, but the house doesn’t fit your needs, you can knock it down and build one that will. This allows you to be in the community you love, in a brand-new house that suits you and your lifestyle.
• Custom-designed home: If you have outgrown your home or it has some unfixable flaws, custom-designing a new build will allow you to build your dream space instead of packing up and moving. You can design your home to suit your budget, lifestyle, and family, all within the community you already inhabit.
• Potential increase in property value: If you knock down your old house and build a bigger or better one, it could likely increase the value of your property. If you build a home that appeals more to you, it might have the same effect on potential buyers, too.
• Energy efficiency: If you’ve ever lived in an old villa, you’ll know how heat can get in and out through the windows and doors. Modern homes are simply built to higher sustainability standards and allow you to heat or cool your house for less.

Knockdown rebuild vs renovation – which is right for you?

If you are just looking for a refreshed bathroom or kitchen, a renovation will be a cheaper and less invasive way to add value to your home. However, if you're looking to upgrade your whole property, a full-scale rebuild can be more cost-effective.

Renovations are far more prone to have sudden costs pop up because you’re working with an existing structure and unexpected problems can be discovered once the walls or floors are opened up.

Renovations are also more likely to experience delays and face limitations when it comes to how you can update the design of your home. If your home needs major structural changes, a rebuild could be the better option.

The importance of choosing the right builder

The team you choose to do your demolition and rebuild can make or break your project. You’ll need a team of builders, demolition experts, and architects with experience in knockdowns and rebuilds.

Here are some key things to look for.

• Transparent pricing: Clear and upfront quotes will help you understand exactly what you will owe and ensure it matches your budget.
• Great communication: Gauge what their communication is like during the quoting process. You’ll want someone who will give you regular updates throughout the process.
• Quality guarantees: A good builder stands behind their work. You want someone who has a guarantee that you will get the work you owe, or they will make it right.

Summing up

A knockdown rebuild is a great way to stay in the location you love while upgrading to a modern, custom-designed home. Costs vary, but by understanding the key expenses involved, you can plan effectively and reach out for accurate quotes.

If you're considering a knockdown rebuild, choosing the right team is a non-negotiable for ensuring a stress-free process. DiJones is here to help guide you through the process from start to finish. Reach out to our team today to get expert advice.

FAQs

How long does a knockdown rebuild take?

A knockdown rebuild in Australia typically takes anywhere from 10 to 18 months. However, this will vary depending on the council, and the complexity of your demolition, and rebuild.

How much does it cost to knock down and rebuild in Sydney?

On average, a knockdown and rebuild costs between $400,000 and $800,000. Again, this will vary based on your exact site and the home you want to build. Remember to also account for additional costs like permits and temporary housing.

Will I need approval from the council for a knockdown rebuild?

Yes, you will need council permits for both the demolition and construction of your new home. These costs will vary by state and local council, so it’s best to check locally before you move forward with the project.