With the exorbitant cost of stamp duty and capital gains tax burdening prospective homebuyers, many canny inner suburban homeowners are turning to Knock Down-Rebuild options to optimise the value in their land and to stay in an area they love!
One cost many people forget to factor into their calculations is demolition of their existing home. Anyone who has ever done a small renovation will understand the substantial cost of even small quantities of rubbish and building waste removal.
For those looking to Knock Down Rebuild for the first time – what is actually involved in the process of demolishing a house for a proposed rebuild?
Prior to organising ANYTHING surrounding a house demolition, ensure you have all your finances in order to proceed with the build. Knocking down your home without loan approvals and contracts signed for the new home to be built, is fraught. Any hiccups in this process can result in costly delays involving storage, temporary accommodation and contractors.
If you are arranging the house demolition yourself, as a separate loan to the house build, expect to pay anywhere from $5,000 to $25,000; depending on the scope of the works involved. Below are a few of the issues which will impact on the final cost of the demolition.
The site will require an initial inspection to assess the presence of hazardous materials such as lead paint or asbestos and to organise their safe disposal. If you are managing the demolition yourself, it is incumbent on you to hire the services of an environmental remediation specialist, to safely remove hazardous materials from the site.
The demolition manager will also need to inspect the site to address any access issues, as heavy excavation equipment and rubbish removal bins will need to get in and out easily.
A distinct advantage of aligning with a builder who has an affiliated demolition team is the ability to excavate in a way which prepares the site for the foundations of the new homes.
Permits and permissions
As with everything in life, you will need to gain permission from the proper authorities before proceeding with the demolition. Some demolition contractors can include permits and notification fees as part of their service, so it pays to ask about these inclusions upfront.
If the service is not available, contact your local council to find out which permits will need to be applied for and the rules surrounding the application. These may include:
- Noise restrictions
- Work hour limits
- Debris disposal and waste management
Generally, a cleared site will involve the loss of vegetation and council restrictions surrounding the removal of native trees should be investigated to avoid heavy fines.
Depending on your location, you may also be required to contact the Roads and Traffic Authority, Department of Environment and Climate Change or WorkCover.
Obviously the larger your home, the greater the cost of demolition will be. Just as with building a home, many demolition contractors will charge by the square metre.
The size of the house to be demolished will also impact the time it takes to demolish. Once all the processes and procedures are in place, expect the actual knockdown to take anywhere from three days to a week or more, to complete.
If your home has classical design characteristics, it may be worth enquiring about salvaging. Some demolishers run a sideline business selling architectural features such as sash windows, ceiling roses or fretwork. It pays to gather quotes off at least three companies.
Utilities such as sewerage, electricity and water will need to be disconnected by the relevant tradespeople, prior to demolition.
Select a trustworthy and reliable builder who understands and prioritises your financial investment. A good home builder will take the stress out of the Knock-Down Rebuild process through our partnerships with experienced, licensed professionals – ensuring building with us has an affordable and predictable outcome.