Book A Consult

What is the cost to knock down and rebuild a house?

Knock Down and House Rebuild_IMG

Knock downs and rebuilds have become an increasingly popular option for homeowners. If you don’t like your house, have outgrown it, or you find the cost of renovating it outweighs the return it may be better to just knock it down and start again. A complete rebuild is a viable option if you love the land your home is perched on or you’ve bought a rundown house in an attractive area.

You may have explored the possibility of rebuilding the house yourself but been put off by how much you think it will cost. You may be surprised to learn that a knock down and rebuild could work out more cost-effective and affordable than you realise. This is especially true if your land value is high.

Take a look at the costs associated with rebuilding your home and see if it might be a viable option. 

Free eBook Download: Renovate vs Rebuild

The cost of demolition

As a general guide, the cost of demolishing a house can vary from between $16,000 and $35,000. 

There are many factors that can influence exactly how much it will cost you. If these apply to your house, your demolition costs will be on the higher end of the scale.

The size of your home: It makes sense that the bigger the house, the more it will cost to demolish.

Timber or brick: Demolishing a house involves removing and dumping everything. Dumping fees are calculated on weight. Bricks are of course heavier than timber, so a brick house will cost more to demolish. 

Asbestos: If there is asbestos in your roof or walls, it will need to be carefully removed and disposed of by trained professionals.

Sloping or battle-axe block: These types of blocks are more difficult for machinery and workers to access all adding up to higher labour costs. 

Septic tank: If your property has a septic tank system, the tanks will need to be pumped and removed. If you can connect to a sewage system, the area where your septic system was must be backfilled with clean soil. If a sewage connection is not available, a new tank can be installed to suit the layout and access points of your new home. Sometimes your existing tank can be reused if it’s located in the right position. 

Landscaping: If your block has a lot of trees, fencing, garden beds, paths or rocks which need removing, you’ll be up for additional costs. You may be able to negotiate with the demolisher to completely level your block after they’ve completed their work to save having a builder do it later.

Pool: If you need to fill in an existing pool to be able to have enough space to construct your new home, this will cost extra.

The cost to rebuild

The cost of building a new home varies but on average is between $1,200 and $1,600 per square metre. Compare that with the cost of a complete renovation coming in at between $3,000 and $4,000 per square metre.

Sure, with a rebuild, you pay for the demolition costs as well but think about the end result. With a reno, you still have an old house and potentially more problems to fix down the track. With a rebuilt, you have a brand-new home with a higher market value.

Hidden costs to consider

There are a few potential hidden costs you should keep in mind when budgeting for a knock down and rebuild. 

A builder experienced in house rebuilds will have a good understanding of how and when these costs can arise. Always look for a reputable builder who will be upfront with you about what you should expect.

Here are some of the common costs of the planning and construction process:

  • Due to soil being disturbed during the demolition process, additional piers may be needed to reach solid ground.

  • Your power company will charge a fee to disconnect your electricity and gas prior to demolition and reconnect it again later.

  • If your electricity is supplied by overhead power lines, your builder may need to move low hanging lines to be able to start construction and may need to hire a temporary power pole. You may also need a new permanent power pole constructed on your property for your new home. 

  • Removing and re-installing any existing solar panels is another potential hidden cost. This can become tricky if you have solar panels that are older than ten years with a good feed-in-tariff that you don’t want to lose. Your builder can help by doing a ‘replacement of the cable.’ This involves getting your existing meter moved to a temporary power pole, keeping the meter and account in your name and moving it back to the house when it’s ready.

Still, adding up these potential hidden costs, a knock down and rebuild still comes in cheaper than the costs associated with renovating.

Beautiful Kitchen and Living Area_IMG

Costs you save by doing a knock down and rebuild

If you’re comparing the cost of a rebuild to the cost of buying an existing house, there are some potential savings to bear in mind.

Fees, duty and interest: First up, there are no real estate agency fees. You’ll also save on stamp duty as you already own the land you’re building on. 

Here’s an example. An existing house worth $800,000 would incur around $20,000 in stamp duty (in Queensland). This $20,000 at 0.45% p.a. equates to around $27,000 in additional interest over 30 years.

Land value: If you are rebuilding in a highly sought after area, the value of your land will continue to increase over the years.

Low maintenance: With a rebuild, you’ll have no or little maintenance costs for years to come as everything from the appliances to the structure to the wiring will be brand new.

Removal: If you have an old Queenslander on stumps, there are removal companies that will pay you to remove your house. They then remodel it and resell it or in some cases sell it to a new buyer before it’s even left your property! This will save on demolition costs and perhaps make you a profit. 

Free eBook Download: Renovate vs Rebuild

Want to learn more about the costs of knocking down and rebuilding your house?

Design 360 will walk you through the design and certification phase of a knock down and rebuild and help you create a beautiful custom home design. We’ll work with you to ensure you’re happy with every tiny detail of your new home prior to construction.

We will take your vision and put it on paper, and then take it one step further. With our state-of-the-art Digital Full Size Plan Walkthroughs at our head office in North Lakes you can have the unique experience of walking through your new home while it’s still just a plan!

We use the latest technology to project your plans onto the floor of our custom-built studio on a 1:1 scale. You can walk through your home plan and make changes before making the final decision. It takes the guesswork out of designing your new home.

Talk to our friendly team today to arrange a no obligation consultation.

Back to Blog

Related Articles

5 Benefits of Designing a Custom Home

  Deciding to purchase a new house is an exciting time for anyone, regardless if you’re a first...

Internal features to consider when designing your new home

If you’ve chosen to have your new home custom designed, it should be an exciting and rewarding...

How large should my lounge room be?

Your lounge room is perhaps the most central area of your home, second only to the kitchen. It’s...