Love where you live? Stay there with a Knockdown-Rebuild
Knocking down your old home and building new, also known as a knockdown-rebuild, is an ever-increasing way families are choosing to get into a new home in an area they already love. If you’re happy with the area you live in but need more space or even a more modern design, a knockdown-rebuild is a way to get everything you want. Perhaps you really love your current suburb or even your street, by building on your current block of land, you get to continue to enjoy the great amenity of your area, keep the same neighbours you’ve always had and let your kids continue to go to the same schools. At the same time, a knockdown-rebuild comes with significant benefits in terms of costs. On average, you would have to pay significantly more to buy a newly built home in the same area. By building yourself, you could potentially be saving approximately 20 per cent. You also benefit from additional savings on things such as transaction costs and stamp duty or real estate agent commissions. Which in total could be around 7-8 per cent of the value of the property. Most importantly of all, by building a home yourself, you’ll be able to get exactly what you want. You can work with a designer and completely customise your home, to get everything you’ve ever wanted and more.
It’s possible to build with confidence and within your budget by using a fixed price contract upfront and you won’t have to spend the next few months attending home opens and trying to buy something at auction. A knockdown-rebuild is the most cost-effective and transparent way for you to get everything you want in a brand new home.
What is the process of a knockdown-rebuild?
When looking at a knockdown-rebuild, the first thing you need to do is assess your current block of land, to make sure you’re going to be able to achieve the result you want.Local and state governments have requirements in place around the design and size of a new building and the team at Bodon Homes can help you assess what sort of potential your site has. Some considerations are the building envelope, which is the area in which you can build as homes need to be set back off the boundaries according to planning policy. It’s also important to assess whether your site has any easements, which gives someone else the right to use the land for a specified purpose – most commonly drainage and sewage. It is also worth assessing the type of soil you have on your land. Some types of soils might have issues with stability. While more clay-based soils will generally need further drainage options. Bodon Homes can quickly and easily give you a site assessment, and let you know what sort of potential your site has for a knockdown-rebuild.
Choosing a Design for Your Lifestyle
The whole goal of a knockdown-rebuild is to create the perfect home for you and your family in the location you already love. A good idea is to come up with a checklist of ‘must-have’ features that you can talk to your builder about incorporating. Some things to consider early on are the direction the house should face. A good idea is to have your major activity rooms, the areas that you spend the most time in, facing north. That way they will attract the most light and will be the easy to heat and cool as required. On top of the direction, you then want to consider if the home you want needs to be open plan or have specific areas or rooms for certain things. It’s also worth thinking about the type of outdoor area you want to include and how that might serve the current and future needs of your family. There are also plenty of practical things to think about such as the size and style of kitchen as well as less exciting but vitally important storage areas.
How much will a knockdown-rebuild cost?
When looking at a knockdown-rebuild it’s important to look at the overall process and the costs work. For the most part, the costs fall into two categories, which are the initial site costs and then the overall construction phase. The initial site works will include costs such as the demolition of the old home, which is going to costs around $15,000 subject to a site inspection. Other costs will depend on the initial site assessment. In terms of the cost to build a new home, this will be a product of the size of the home and the overall quality of the finish. For a 4 bedroom, 3 bathroom, 2 living-26SQ/242m2, medium finish home in Melbourne, you would expect to pay around $16,500 to $18,500 per square or $1,800 – $2,000 per square meter (Gross Floor Area), for a turnkey home. If you’re working with a builder, you can incorporate all of these costs into a fixed price building contract that you can then take to a bank for funding. To fund the construction, you can apply for a construction loan, which is slightly different from a regular home loan. A construction loan will cover all the associated construction costs but is not paid out all at once. It’s generally broken down into a number of different phases known as progress payments. These progress payments are made to the builder at various stages of the construction process when the lender is satisfied the work has been done satisfactorily.
The stage of the progress payments are usually:
• Initial deposit – 5% of the total contract
• Base stage – 10%
• Frame stage – 15%
• Lock up – 35%
• Fixing stage – 25%
• Practical completion – 10%
Once the building is completed, your construction loans more often than not revert to a standard P&I loan for the balance of the construction costs.
Interested in a knockdown-rebuild?
The first place to start is to contact Bodon Homes for a complimentary site assessment.
We can assess your current block of land and give you an idea about what might be possible on the current site.