If you love your current location but your home no longer suits your needs, you’re not alone. More Australians are opting to stay on their land and start fresh with a knock down and rebuild. But how much does a knock down rebuild project really cost, and what are the potential costs involved?
Let’s break down the key considerations and typical expenses involved in a knockdown rebuild project.
What is a knock down rebuild?
A knock down and rebuild involves demolishing your existing home and constructing a brand new home in its place. It’s a popular alternative to a major renovation, particularly when your existing property has poor functionality, outdated finishes, or energy inefficiency. By rebuilding, you can enjoy a modern layout, upgraded outdoor living spaces, and improved sustainability, without leaving your neighbourhood.
What costs are involved in a knockdown rebuild?
The cost to knock down and rebuild can vary widely depending on your site, location, home size, and selections. However, most knockdown rebuild specialists will walk you through these common cost categories:
Demolition costs
Before construction can begin, you’ll need to engage a preferred demolition company to remove the existing structure. Demolition costs usually range between $15,000–$40,000 depending on access, asbestos, and the complexity of the job. You’ll also need to budget for temporary accommodation while your home is being rebuilt.
Site costs
When planning a knockdown rebuild, it’s important to factor in a range of site costs that can significantly impact your budget. Site preparation may involve clearing vegetation, levelling the block and possibly installing retaining walls, especially on sloping land. Soil testing and engineering reports are required to determine slab design, which can vary depending on soil reactivity. You’ll also need to account for disconnection and reconnection of services such as electricity, gas, water, sewer and NBN, and potentially upgrading or relocating them. Understanding these factors early on is key to managing expectations as hidden costs may arise if unknown issues are discovered, so a contingency allowance is highly recommended to cover any unexpected costs.
Design phase
We’ll work with you to find the perfect design for your new home, whether that means choosing from one of our existing floorplans and facades, which is our most straightforward and cost-effective option, or starting from scratch to create a custom design that’s completely tailored to your vision.
Planning process
Hamlan manages the entire planning process, from design through to planning endorsement. We’ll apply for planning approval if needed and guide you through any permit conditions specific to your block. After your contract is signed, we’ll apply for your building and demolition permits. You’ll need to arrange for services to be abolished and move out of your home. This can take up to six weeks, so starting early can help avoid delays to your build.This early work sets the foundation for a smooth construction process.
Construction
The construction phase includes several stages, base, frame, lock-up, fixing, and completion, each with inspections and approvals to meet the building materials standards set by the National Construction Code (NCC) by the Australian Building Codes Board (ABCB).
Landscaping and finishing touches
After your new home is built, you’ll want to consider landscaping costs for driveways, gardens, fences and more. Many homeowners use this opportunity to improve outdoor living spaces and enhance street appeal.
Read more: What’s involved in a knockdown rebuild?
Is a knockdown rebuild cost-effective?
Surprisingly, rebuilding can be more cost effective than buying land and building from scratch, especially if you already have land ownership. You avoid stamp duty on a new land purchase and instead invest that money into your dream home. Plus, you’re able to control your selections, allowing you to manage your project cost and avoid the limitations of an old home renovation.
Rebuilding can also increase the land value of your property, especially if your existing home is outdated and difficult to maintain.
Choose the right knock down rebuild specialist
From the initial site inspection to the final handover, working with experienced knockdown rebuild specialists can help you avoid delays, reduce unforeseen costs, and streamline the entire process.
At Hamlan, we’ve been delivering quality knock down rebuild homes across Geelong and the Surf Coast for over 40 years. We understand the emotional and financial investment that comes with your existing property, and we’re here to help you honour that while building a home that suits your future.
