Budget for these 7 Surprising Sydney Knock Down Rebuild Costs
Vacant land is harder and harder to come by in many metropolitan and suburb areas of Sydney. While the availability of land has not seen much increase, the demand for housing has forced many Sydneysiders to get creative when building a new home. As one of Australia’s oldest regions, New South Wales is full of homes that are increasing in age and decreasing in value. Instead of searching for a new home, why not consider budgeting for a knock down and rebuild instead?
Old homes are the property market’s hidden gems. Although they may no longer be suitable to live in, they may be located on the perfect chunk of land. Families looking for a home in Sydney suburbs or an opportunistic local investor can tare down a building that doesn’t fit their requirements. Once the house is gone, simply hire a local Sydney home builder to build your dream home from scratch.
But before you commit to the demolition process or buy a block of land, it’s important to prepare yourself for the costs associated with a Sydney knock down and rebuild.
What are the costs involved with a home knock down rebuild? And how can you prepare for such a momentous undertaking? Read on for more.
7 Sydney knockdown and rebuild costs to budget for
- The costs to level out your land in the instance it sits on a sloping block. This can include excavation and removal of soil. Otherwise, a split-level home design is a creative way to make the most of your block.
- Local Sydney zoning laws impact your property if it’s in a bushfire-rated location, marine area or heritage listed.
- Servicing costs such as stormwater drainage, sewer connections, electricity and internet connections.
- The soil conditions of your property. Some properties have a high concentration of clay or sulphate soils that require treatment.
- Tree removal. Removing invasive tree roots may require the help of a professional arborist.
- Mandatory building requirements. You may need to hire or perform traffic and noise management during your demolition to abide by local council laws and restrictions.
- Site complexity may also impact costs. This can include site access for machinery and tradespeople as well as powerline protection and crane allowances.
How much does a knock down and rebuild typically cost?
The cost of a knock down rebuild is the most important thing to anticipate, whether you’re on a shoestring or a lavish budget. Factors that influence the cost of a knockdown rebuild are not fixed and will often vary from project to project.
Your neighbour’s costs to demolish and rebuild will differ significantly from yours, so it’s never ideal to compare. While every council and area have different charges and requirements, a knock down and rebuild in Sydney often follows a similar trend for costs.
The best course of action is to discuss your home knock down and rebuild with a qualified Sydney home builder.
They will give you a more accurate quote that’s in line with their unique knock down and rebuild process.
Don’t forget accomodations before knocking down your home
One of the most considerable hidden costs that surprise people is the cost of living during your demolition and rebuild project. While many knock down rebuilds are quicker to complete than a renovation, there will still be a period in which you and your family are displaced.
Your builder will need to take complete possession of the site, just like any other build, to ensure safety, quality of work and efficiency. This means you will need to budget for a place to live in the meantime – unless you have a very generous family member to take you in.
With these site costs in mind, let’s discuss how you can best financially prepare for your knockdown rebuild so nothing stands in your way once the dust has settled on your demolition.
How to financially prepare for a knockdown rebuild
Thankfully, there are many ways to finance a knockdown rebuild. You may even be eligible for certain government incentives tailored towards new home builds.
Many people fund their build using a construction loan, which provides financing based on each milestone in the construction process. A construction loan allows you to pay your Sydney home builder at the required build intervals without paying one huge lump sum or pile of interest.
Payment intervals for a construction loan
- The beginning of a contract
- The slab stage
- The completion of the framing
- Lock up stage
- Complete fit-out
- Handover after the build
Your construction loan will generally only cover the build, not the demolition. To pay for an existing home demolishing, many people choose to use the equity of their own home. This allows borrowers to access the amount they have paid off on their current home to fund their new one. This gives greater flexibility to pay off the project with funds overtime.
New South Wales government grants
Planning your knockdown rebuild offers an excellent opportunity to compare interest rates. This is particularly important if you plan to refinance in order to support your project.
While researching, check out the current government grants and lines of support for knockdown rebuilds and new builds.
For example, in 2020, the New South Wales government offered a $25,000 one-off payment which knockdown rebuild customers were eligible for. While this has now expired, new schemes and concessions are always becoming available to support new builds.
Ready to start your knockdown rebuild?
Ready to reside in your favourite area of Sydney AND live in your dream home? Get the best of both worlds when you hire New South Homes to build your new home. We can help you to get the most out of your knock down and rebuild budget.
We build your home and help you sort out all the red tape along the way. We also help you qualify for the latest grants and concessions. Plus, we advise you on the best way to finance your knockdown rebuild.
Simply get in touch with our knowledgeable Sydney homebuilders to have all your questions answered.
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