If your existing home no longer meets your needs, you have three basic choices to change the situation. You can move to another property, extend or renovate the home you currently have or knock it down and build something new. All these options involve a certain amount of disruption and cost, so you need to choose wisely to get the desired outcome.
If you really like the area where you live, moving away might not be an option. And if your existing home is old and cannot be brought up to the standard you want, then knock down and rebuild may be the only practical solution. It is a choice that’s becoming increasingly popular, with an estimated 10% or more of new homes in major cities in Australia being knock-down rebuilds.
The reasons for the increase are partly the low availability of suitable sites and the increasing price of building land. So it is a viable proposition and can even work out cheaper than a major structural renovation of an existing property, which may not deliver what you want due to the restrictions of the existing property or limitations imposed by the site.
To stay within your budget, however, you need to be aware of potential hidden costs that can arise, since these can make the whole project unaffordable.
Demolition Surprises & Site-Specific Challenges
A major element of the overall cost will be the demolition of the existing property and the removal of waste material. If the house is constructed from weatherboard or similar materials and is on raised foundations, it may be possible to sell and remove it, which will generate cash to help finance the build.
However, in most cases, demolition will be necessary, and you need to make sure you account for all the likely costs. Extra costs that may arise should be anticipated where possible, so there are no nasty surprises. They include:
- Additional work that is necessary because a larger property is being built than the one demolished, which may require further site clearance, such as tree removal or extending the footings.
- Dealing with contamination that is found, such as asbestos in the property that requires specialist (and more expensive) help to remove it.
- A site with difficult access, which may cause problems in moving heavy equipment.
- Unexpected delays, such as those caused by bad weather, that can increase costs directly as well as the interest payable on borrowed money.
- A site that is sloping or otherwise difficult to work on, resulting in work progressing more slowly for safety reasons.
Council Fees, Permits & Regulatory Requirements
Depending on the type of home you have, demolition may not be permitted or, if it is, special conditions may be imposed that will make the process more complex and add to the cost. This may also depend on the area you live in and the surrounding properties.
Additional regulations and fees may also apply if you are increasing the size of the property, particularly with extra floors, or are changing to multiple occupancy. This will include adding a granny flat.
It’s particularly important that you investigate the local regulations and ensure that your knock-down and rebuild complies. Although this may well add to the cost, it will be cheaper than failing to comply with regulations or to obtain the required permits. Failure will not only incur severe financial penalties but may also delay the whole project and put its completion in doubt.
Temporary Accommodation & Associated Living Costs
Although a major structural renovation may require you to move out of your home temporarily, it’s usually possible to continue living there while the work goes on. Demolition will, however, result in the total loss of your home and require you to find temporary accommodation while the new one is being built.
A new build will take many weeks, and you need to factor in the cost of rented accommodation during this period. You will also have the cost of moving your furniture to the rented property and then to the new one once the build is complete.
Depending on the size of the rented property, you may also have the cost of putting some furniture into storage. Additionally, if the rented property is some distance away, extra commuting costs may be incurred. All these costs add to the total price, and it’s important you are aware of them.
Utility Disconnections, Reconnections & Upgrades
Demolishing a property and building another doesn’t just require equipment and appliances to be disconnected and reconnected. You have to inform the service providers and must have services turned off professionally, which all adds to the cost.
In the unlikely event that your new house has exactly the same layout as the old one, reconnection will be simplified because you may be able to use existing pipework and cabling to some degree. It’s much more likely, however, that everything will be in a different position, so pipes and cabling will need to be dug up and rerouted, so you need to allow for the cost of this.
Whether re-routing pipes and cables or not, you need to inform the utility suppliers and complete the necessary paperwork. Failure to do so may delay the project and incur additional costs.
Finishing Touches & External Works (Not in Base Build)
Once your old property is demolished and the new one built, that’s not the end of the project. You need to have your new home in the required condition, which means decorating, laying flooring and installing fittings and equipment. If your new home is bigger, you may also need extra furniture, and you may not wish to use old appliances in a new build.
Externally, there are paths, paved areas and decking to lay, grass to put down and vegetation to plant. All these finishing touches can add a significant cost, so they need to be included in your initial budget.
At Enso Homes, we don’t believe in nasty surprises, so we keep our clients fully informed at all times. This includes providing cost estimates and quotations that are fully inclusive with no hidden extras. For a smooth process and a successful outcome at a price you can afford, contact us for a stress-free knock-down and rebuild.
