Knocking down an old home to build another can prove a rewarding move. But, it requires careful consideration.
While renovating or moving home may be more traditional methods of solving a housing issue, knock down rebuild projects are becoming an increasingly popular housing strategy.
Why knock down and rebuild?
There are a number of reasons to consider a knock down rebuild project. The chief reason for knocking down a home is because it’s beyond repair. As a general rule of thumb, the more work that needs to be done to a property, the more value a rebuild will offer. When it comes to especially old houses a rebuild is often the most cost-effective solution.
In established inner city metropolitan areas where land is increasingly in short supply, rebuilding is also sometimes the only way to get into a neighborhood or stay in one.
Many people also consider a knock down rebuild when a home is no longer suitable for their lifestyle but they don’t want to change location. Many of us have a strong affinity with our local community – be it the shops, schools or our neighbours – and a rebuilding project means this need not be disturbed.
And finally, people are often attracted to rebuilding because it can be much less stressful than renovating. We’ve all known friends who have spent months living without kitchens or bathrooms; a rebuild can be a much more hassle free solution.
Rebuilding and financing
The real financial benefit of a knockdown rebuild is the fact that there are no hidden costs.
Renovations are notoriously difficult to budget for, with unexpected hurdles likely to bring up countless additional expenses. Because of this finance can be difficult to arrange compared to a rebuild, which is straightforward.
Of course, building a new home doesn’t come cheap either, so it’s important to seek professional building advice as well as a range of quotes to determine what will be the most cost effective solution for you.
Important points to consider
- Don’t forget that you may be eligible for new home incentives from the government if you decide to rebuild rather than renovate.
- Be sure not to overcapitalise – a new home always involves unexpected expenses.
- If you’re knocking down your existing home you’re going to have to pay for rent during that time or find somewhere to live. So factor in possible extra costs.
- City approval for rebuilding can be difficult, time-consuming and expensive. But remember, carrying out any work without approval is illegal so don’t be tempted to try to slide under the radar.