It can be difficult to find the perfect home location. There are so many factors at play – proximity to public transport, school districts, green space, roads. Once you’ve got your perfect spot, it’s understandable why you’d loathe to let it go for a house upgrade.

That’s where a knockdown rebuild comes in.

With a knockdown rebuild, you can build your dream home in place of your existing property. If your current home is condemned, too cramped, or just not fitting the bill, rebuilding your home allows you to replace your house without major geographical upheaval. 

Opting for a knockdown rebuild is a savvy idea in Sydney, given the rising cost of land. When city life is already moving at such a pace, it’s best not to overcomplicate things. 

If you decide on a knockdown rebuild, you will need to demolish your current home, briefly moving to an interim property. Then a new home will be built in the same place. Let’s look at everything you need to consider when you begin on your knockdown rebuild journey.

What is a Knockdown Rebuild?

A knockdown rebuild is a project in which you knock down an existing property and replace it with a brand-new build on the same plot. This gives you the chance to build something fresh.

Another benefit is that modern homes tend to be more eco-friendly, which can make them more cost-efficient.

Rebuilding from scratch is often much quicker than a renovation and comes without the stress of trying to meld architectural styles. It also means you don’t feel obligated to stay true to the original character of the property.

What are the Benefits of a Knockdown Rebuild?

Here are some of the reasons the knockdown rebuild process may be perfect for you:

●      Dream Home: Knockdown rebuilds allow you to start afresh, building a new home that is totally up to spec. For example, you can add in features like a granny flat if you have a relative you want nearby or upgrade from a 3 to a 4 bedroom home.

●      Save Time: You don’t have to spend time searching for a new plot of land to build your dream home, as you already own it.

●      Familiarity: Moving house comes with so much admin, not to mention the need to cultivate new neighbour relationships. In staying in the same spot, you have the benefit of familiarity – you know where all of the amenities are and can focus solely on the build.

●      Save Money: Knockdown rebuilds can actually be more cost-effective than other options. Renovating existing structures can take longer and cost more.

How Does the Knockdown Rebuild Process Work?

The following is a guide to the steps you’ll want to follow when you start your knockdown rebuild project.

Step 1: Planning and Design

It’s important to have a thorough plan before you begin building your new home. You will need to consider:

●      Hiring a Home Builder: The first step is to make sure you know what you want to do with the plot of land before you knock your current house down! Hiring a house design expert is a great idea.

At Provincial Homes, we specialise in new builds and have a range of home designs to browse through. You will also benefit from our 30 year structural guarantee. You can explore a range of design ideas in our blog post here.

●      Zoning Regulations and Council Approvals: You need to check which NSW zone your plot falls into, and ensure your design falls into line with local regulations. Factors like maximum height, minimum setback, and land permissibility all vary from zone to zone.

It is also worth noting not all homes are suitable for a variety of reasons. Apply to the council to find out more. An early site inspection is a good idea before you go any further.

●      Design Considerations: You likely already have a firm idea of what you need to improve on with your new house. But it’s always worth considering what Sydney is like year-round.

Factors such as the weather (rainfall, wind, temperature) are essential to bear in mind; you’ll want to have the opportunity for airflow through your house in summer but insulation for the winter.

Step 2: Demolition

This is the first action your site will see – it’s important to prepare for it. Take into consideration:

●      Costs: You need to make sure you bake demolition costs into your overall budget. This can be more expensive than you may think.

●      Permits: You may be able to include demolition in a Complying Development Certificate (CDC) if your home is eligible for this. If not, you will need to submit a Development Application (DA) to the local council and include your demolition plans.

●      Safety: Demolition can be hazardous business. Everyone on your site is obliged to adhere to the terms of the Work Health and Safety Act (WHS). You will want to speak to a contractor to obtain a risk assessment. It’s also important you check for asbestos before work.

●      Environmental Considerations: You’ll want to check your connection to the local sewer line and obtain a permit for waste disposal.

Step 3: Construction

When your site is prepared, here are the aspects you need to consider to be able to build with confidence:

●      Building Approvals and Permits: Before you draw up any building contracts, you want to ensure your project has everything in place. The quickest route to approval in NSW is the CDC. If you find your property isn’t eligible, you can apply for a DA with your local council.

●      Personnel: You need to choose a builder or a construction company – it’s a good idea to look for knockdown rebuild specialists!

●      Construction Phases and Timelines: There are five distinct phases to construction, not including the demolition:

1. Laying the Slab (foundations)
2. Frame and Brickwork
3. Lock up (doors and windows finished)
4. Second fixing (plumbing, electrics, plasterboards etc.)
5. Completion

You can expect the overall timeline from start to finish to take between 12 and 18 months if all goes well. For a more detailed estimate, feel free to contact our customer service team, and one of our home consultants can guide you further.

●      Building Materials and Finishes: You want to discuss with your contractor what materials are used in the build, not only for structural integrity but for aesthetic value.

Step 4: Completion and Handover

The best part of this whole process is seeing your house plan come to fruition!

All newly completed homes need a final inspection to check they are safe and ready for inhabitants.

Then, it’s time to move in. This is the most exciting part – getting your new keys ready, and unlocking the door. You can then assign rooms, put all your furniture in your new house, and settle in.

Financial Considerations

No one wants to be overstretched. You will want to budget effectively for rebuilding your home and find a source of funding.

Cost Breakdown

Let’s start with a cost breakdown of everything you’ll need to keep in mind.

●      Land Costs: If you’re looking to knockdown and rebuild your current home, this isn’t an issue for you. Otherwise, you need to buy a plot with a house already on it.

●      Demolition Costs: This will take up a large proportion of your budget.

●      Construction Costs: You need to pay for labour and materials to build your dream house.

●      Professional Fees (architect, engineer, surveyor): It’s worth paying for professionals to ensure your build goes perfectly.

●      Legal Fees: Your contractors will likely need you to cover the costs of legal fees to obtain permits for demolition and building. You’ll likely also want a legal representative to look over your contract!

●      Stamp Duty: If you build on a site you already own, you do not pay stamp duty! If, however, you decide to buy a new property to knock down, you will.

●      Other Costs (insurance, permits, council fees): Legally, your home builder needs to have Home Building Compensation Fund (HBCF) cover. Ask for this before you pay a penny. You then become responsible for insurance on the date of completion.

Based on your zoning, your local council may require additional permits and surveys to take place and may charge fees if you decide to knockdown a single storey house and put in its place a multiple storey home.

Financing Options

There are multiple options for financing your knockdown rebuild project, including the following:

●      Home Loans: The most straightforward way of funding a house purchase is with a mortgage, so this might be worth looking into. Eventually, this is the form your loans will take.

●      Construction Loans: This is often the best option, as it takes into account all aspects of home building, and is released in 5 phases so as to reduce the overall interest you will pay in the end.

●      Equity Release: You can potentially fund this by releasing the equity on another property or on the land of this property itself.

●      Government Grants and Incentives: The NSW government offers support for knockdown rebuilds by aiding information gathering.

Tax Implications

In New South Wales, you don’t have to pay stamp duty on a knockdown rebuild so long as you adhere to a few rules:

●      The cost must be over $450,000.

●      You must have resided at the property for more than 12 months.

●      The construction begins within 12 months of demolition.

If you’re looking to knockdown and rebuild an investment property, you will need to pay Capital Gains Tax on this. 

Legal and Regulatory Considerations

Any house build has to take into account the zoning regulations, the building codes, and insurance.

Zoning Regulations

Depending on your zone, there are rules as to your house dimensions. Contact Provincial Homes for a consultation on these today:

●      Height Restrictions: Whether you want a single storey home design or a double storey home may be dictated by the height restrictions to maintain a uniform skyline in your area.

●      Setbacks: Your block of land will likely dictate the size of your house, given the front, side and rear setback requirements to allow you the necessary space between your house and the land boundary.

●      Floor Space Ratio: This is how much of the site can actually be built upon compared to the size of the parcel of land.

Building Codes and Standards

Make sure your property adheres to the standards set by external agencies:

●      Australian Building Codes Board (ABCB): The ABCB are the regulators for a number of different schemes in the construction industry. Adhering to their standards and codes will ensure your building and plumbing is both safe and sustainable.

●      Local Council Cegulations: It’s important to know which local council your property falls under and to adhere to whatever rules they put forth in terms of zoning and building regulations.

Insurance

There are three types of insurance to obtain:

●      Building insurance – this covers any damage to structures on your property.

●      Contents insurance – this looks after all of your personal belongings inside your house, from clothing to curtains to appliances, protecting against damage from a list of circumstances, and theft.

●      Public liability insurance – your builder needs to have this to insure against injuries or any other damages on site.

Tips for a Successful Knockdown Rebuild

Here are some of our top tips for a smooth knockdown rebuild.

●      Set a Realistic Budget: Nothing is worse than underbudgeting and becoming overdrawn. Spend time crunching the numbers, using tools to aid you, remember site costs in addition to materials. Even the most affordable homes cost money to build.

●      Create a Detailed Project Plan: Use the tips in this article to create your plan, and if possible, hire a project manager to keep on top of it.

●      Communicate Effectively with Your Team: Your demolition team and rebuild home builders are experts. They want to realise your dreams as much as you do.

●      Be Patient and Flexible: The old adage about Rome not being built in a day is the ultimate understatement. This process won’t be immediate, and you have to be adaptable to circumstances.

●      Consider Sustainability: This isn’t only better for our precious environment but likely save you money in the long term.

●      Document Everything: Keeping a paper trail will allow you peace of mind that you’re complying with every regulation. This also helps you see how closely you’re sticking to your budget.

Summing up

If you love your home location but not your house, you may find knocking down your existing home and rebuilding on the same site to be the right decision for you. Brand new homes afford you the opportunity to create something that suits your lifestyle exactly.

Read our customer testimonials and browse our home designs, either online or in person at one of our display homes. We have two display locations, with both single and double storey homes available to be seen.

Frequently Asked Questions

What are the benefits of a knockdown rebuild over renovation?

A knockdown rebuild can be a quicker process than a renovation and cost less overall.

How long does the knockdown rebuild process take?

If all goes well, the average knockdown rebuild process takes between 12-18 months.

What are the typical costs involved in a knockdown rebuild?

The average demolition cost in and around Sydney is between $20,000 and $25,000. Then, the average rebuilding cost is around $1,900 per square metre, going up to around $2,500 per square metre in Sydney. We recommend using a home building calculator for a more accurate appraisal of the typical costs.

Do I need to go through a council approval process for a knockdown rebuild?

In NSW, the process for gaining approval for new buildings is streamlined by the existence of the Complying Development Certificate (CDC). If your new build doesn’t qualify for this for whatever reason, you need to apply to the council for Development Approval.

How do I choose a builder for my knockdown rebuild?

It’s a good idea to obtain lots of quotes from various builders. You also may want to read reviews of builders and, if possible, check out their display homes before you go ahead. Find out more about how Provincial Homes can guarantee the best possible quality here.