If you own an ageing property, it can be challenging to know whether renovating or demolishing a house and building a new one is right for your situation. We’ve covered some of the most common considerations to help you decide if a knockdown and rebuild may be suitable for your property.
Before you reno or demo…
Whether you choose to renovate or demolish and rebuild, a professional building inspection should be carried out, if for nothing else, than to check for asbestos and whether it may be heritage listed.
The ROI of a knockdown and rebuild
Perhaps you’ve come into possession of a green title with an older home, and potentially the chance to subdivide the lot. In this case, keeping and renovating an existing home may be possible, though it may have an impact on what’s possible with your new home design.
A big question comes down to the ROI, which will depend on the extent of your renovation, the comparable costs of renovating and rebuilding, and the potential increase in your property’s value within your ideal selling timeframe. A renovation or Knock Down New Build (KDNB) may be the way to go from a financial standpoint.
Is it cheaper to renovate or demolish and rebuild?
Looking at the initial investment price tag, a renovation may appear significantly cheaper. But check the back of the label; there may be other costs some renovation builders haven’t included. Rubbish disposal, cleaning, touch-ups and utility charges often won’t be on the quote, but will be on your bank statements. Building approvals can also become more complex, leading to more design revisions, and there may be just as much disruption to your daily living (e.g. off-site accommodation costs).
Serious remodelling requires an update of existing support structures, and the process can become an open-ended affair. Even with solid planning, additional work and expenses are likely to reveal themselves as your team tears up floors, ceilings and walls. That cost isn’t just financial, but also in your time and patience.
It completely depends on your scale and the builder, but a renovation can be more expensive than a knockdown and rebuild, when you look at dollars spent per square metre.
Older designs are rarely solar-passive and usually energy inefficient, resulting in high heating and cooling costs without a complete overhaul. If your current home is ever uncomfortable in the middle of winter or summer, it’s also likely environmentally unsustainable.
Another reason to build a new home because it allows you to custom design the entire home to suit your lifestyle, taste and style. Because you’re working with the block orientation a custom built home lets you maximise every square inch of space by applying clever design principles.
What does it cost to demolish and build a new house?
Perth’s standard demolition cost is around $20,000 and can usually be taken care of in 6-8 weeks. Demolishing wood or fibro will generally be cheaper than brick as it’s heavier, less likely to be recycled, and attracts a higher dumping levy due to the tonnage.
A new home build with Stannard starts around $450,000 for a double storey, though, of course, costs will vary depending on your design customisations and block.
Weighing up the total investment
If you want to go cheaper: renovate or remodel. A partial home remodel will almost always be cheaper than tearing down and building a new home. The caveat is that the ROI is not guaranteed to be the same. Older homes decay faster, are more likely to have underlying faults to be remedied, and require more upkeep year on year.
Yes, some older homes have great character from the outside, but inside can be a dog’s breakfast of poor design that will still require an immensely creative real estate agent to frame for sale. The basics like built-in robes and ensuites are curiously absent from homes built even as recently as the 90s. That means more walls coming down and higher costs just to get to par.
Ready to knockdown and rebuild?
A demolish and rebuild home is all about quality and longevity to suit the modern lifestyle. Starting from a blank slate also helps maximise the value of a block (especially in the inner-city) and give you more control over the outcome.
If you’re looking to build a home that works for the way we live, in just the way you want, and to start a new chapter in your life, it’s time to talk to the knockdown rebuild specialists at Stannard Homes.
