It requires careful consideration but knocking down an old home to build another can prove a rewarding move.
While renovating or moving home may be more traditional methods of solving a housing issue, knock down rebuild projects are becoming an increasingly popular housing strategy. According to the Housing Industry Association, around 21,000 rebuild projects are undertaken every year in Australia and this is expected to trend upwards.
WHY KNOCK DOWN AND REBUILD?
There are a number of reasons to consider a knock down rebuild project. The chief reason for knocking down a home is because it’s beyond repair. As a general rule of thumb, the more work that needs to be done to a property, the more value a rebuild will offer. When it comes to especially old houses a rebuild is often the most cost effective solution. In established areas where land is increasingly in short supply, rebuild is also sometimes the only way to get into a neighbourhood, or stay in one. Many people also consider a knock down rebuild when a home is no longer suitable for their lifestyle but they don’t want to change location. Many of us have strong affinity with our local community- be it shops, schools or our neighbours- and a rebuild project means this need not be disturbed. Finally people are attracted to rebuilding because it can be much less stressful than renovating. We’ve all known friends who have spent months living without kitchens or bathrooms, a rebuild can be a much more hassle free solution.
REBUILDING AND FINANCING
The real financial benefit of a knock down rebuild is the fact that there are no hidden costs. Renovations are notoriously difficult to budget for, with the unexpected hurdles likely to conjure up countless additional expenses. Because of this finance can be difficult to arrange compared to a rebuild which is fairly straightforward. Ofcourse, building a new home doesn’t come cheap either, so it’s important to seek professional building advise as well as a range of quotes to determine what will be the most cost effective solution for you. When it comes to financing your rebuild project be sure to enlist our expertise- we can find the best financial solution to suit you.
IMPORTANT POINTS TO CONSIDER
Be sure not to over capitalise- a new home always involves unexpected expenses. If your knocking down your existing home you are going to have to pay for rent during that time, or find somewhere to live. So factor in possible extra costs. Council approval for rebuild can be difficult, time consuming and expensive. But remember, carrying out any work without approval is illegal so don’t be tempted to try to slide under the radar.
John Whitten is the Proprietor of Individual Home Loans and can be contacted on 49722081.
