Nationwide, 7 percent of new home builds are actually knock down rebuilds, and in some parts of the country, like New South Wales, the number is over 10 percent. A knock down rebuild can be a great alternative to a renovation or settling on "the wrong home" in your dream neighbourhood.
However, there are some key things you need to consider before you start tearing down an existing home and planning a new one.
1. The Cost of Demotion
When creating a budget, you can't just consider the cost of putting up a new home. You also need to think about what it will cost to tear down the existing home. Most demolition experts can give you a quote over the phone, as long as you have an accurate description of the building, its size, materials and the surrounding area in terms of accessibility for the workers.
2. Resell Value of Components
To offset the cost of demolition, you may want to sell some parts of the home you plan to knock down so you can rebuild. You may be able to sell old appliances, ceiling fans, light fixtures, doors and multiple other elements. In some cases, even flooring, windows or siding can be worth money if you find the right buyers.
3. Stamp Duty
If you are buying a new home for your knock down rebuild project, you may need to pay stamp duty on that home. The stamp duty varies based on your state and the value of the home. For instance, if you are buying a $400,000 property in New South Wales, the stamp duty is $13,490. Some buyers forget they have to pay that, even if they plan to knock down the home.
4. Rules About Property Lines and Easements
Before you start designing a home, you need to ensure that it works with the rules in your neighbourhood. In particular, you may have to set the home a certain distance from the property line. Additionally, there may be easements (where other people are allowed to pass through or use part of the property) that you need to know about before you start building.
Finally, you need to research utility connections. You may need to pay for and set up new connections. That applies to everything from water and sewer to broadband internet. That can also add additional costs to the project.
To learn more about what factors you need to consider, contact a builder who specialises in knock down rebuild projects.