Undertaking a knockdown rebuild can be complex and potentially costly, but it doesn’t have to be. 

While buying a turnkey home may be less daunting, there is a range of benefits to knocking down an existing property and building new. 

“People are willing to invest in knockdown rebuilds because they can customise every part of their home,” says PropTrack senior economist Paul Ryan. 

“The dream of buying a cheap house in a nice suburb and managing a renovation is aspirational for many Australians.”  

Shaun Patterson, Chief of Sales and Marketing at Simonds Homes, says benefits of a knockdown rebuild include full personalisation of your new home’s design, improved energy efficiency and “increased property value due to updated features”. 

“And the obvious one, keeping the same great location you love while upgrading to your dream home,” Patterson says.  

“Our customers love that they can create a beautifully customised home without the custom price tag. With our Emerge, Elevate, and Elite ranges, they can personalise any of our high-quality, beautiful homes. Meanwhile, our Masterpiece range in Victoria offers complete freedom to design your own dream home or choose from a selection of ready-to-build plans.”

With some expert tips on your side, the path towards creating your dream home can be much more achievable – and affordable. 

1. Prepare a budget 

Determining your budget is a critical first step because it allows you to plan effectively. It also acts as a roadmap  throughout the project, ensuring you’re sticking to what you initially set out (or at least close to it).  

Start by listing all your expenses: demolition, site inspections, design, construction, permits, materials, and whatever else your project entails. 

Look into current prices for materials and labour, and include a 10% buffer for unexpected costs. 

Patterson says a budget will help you find the right builder for your project. 

“For a successful knockdown rebuild, homeowners should establish a clear budget from the get-go and seek out a specialised builder who is able to work within your vision and financial considerations,” he says. 

Patterson adds that doing a knockdown rebuild with a new home builder like Simonds can assist with budgeting because you’re given a fixed-price contract that covers the entire build. 

2. Scout out the right location 

Ryan says inner-city areas are particularly popular for knockdown rebuilds, for a range of reasons.  

“First, housing in these areas is generally older and needs significant updates for energy efficiency, light access and modern layouts. Older homes are less likely to have open-plan designs, which are highly desirable. They also have more structural issues, like insulation and mould,” he says. 

“Secondly, inner-city blocks have expensive land values, making it less costly to buy an existing house and replace it.” 

Patterson says it pays to know the complexities of your location before going ahead with your plans. 

“Different locations can affect the cost and feasibility of a knockdown rebuild, particularly when you consider metro versus regional locations,” he says, with metro areas typically more expensive because of stricter building regulations and higher labour and material costs. 

Accessing metro locations can be harder due to more limited spaces, Patterson adds, which may increase costs. 

“For example, if access to your block is difficult then extra machinery (such as cranes or other) may be required,” he says. 

The bottom line? Either go for an area that’s further out and potentially more cost-effective or factor your location into your budget early to prevent unplanned expenses. 

3. Get a block evaluation 

You might think undertaking a knockdown rebuild is as simple as getting rid of the old home and replacing it with a new one, but it’s not always that straightforward. 

Every block of land comes with unique characteristics that could be expensive to deal with if not detected early on.  

“Factors such as slope, council restrictions and access can add unexpected costs that you will want to prepare for ahead of time,” Patterson says, with other possible site issues including soil stability and drainage issues. 

Patterson adds that a site assessment can uncover these problems from the start, allowing you to budget and avoid surprise hitches further down the track. 

“We know this can be overwhelming, which is why Simonds offers complimentary site assessments for anyone needing help preparing for their knockdown rebuild,” he says. 

4. Choose the right builder 

The right builder can make all the difference to your knockdown rebuild journey, especially where affordability is concerned. 

By working with a reputable and seasoned builder, you may be less likely to encounter costly issues like poor workmanship, project delays and budget blowouts. 

Look for one with an extensive history of similar projects, check their credentials and make sure their pricing is transparent to avoid hidden costs. 

“Homeowners can ensure they are getting the best value for money with their knockdown rebuild by thoroughly researching and comparing different builders, carefully evaluating inclusions and upgrades in line with their budget, and obtaining detailed quotes and project timelines,” Patterson says. 

“Working with a builder who can streamline the knockdown rebuild process can help ensure an easier and more stress-free journey overall.” 

5. Make cost-effective design choices 

While it’s easy to get carried away with fancy finishes or features, there are lots of economical ways to add style to your home design. 

“Simple additions, such as high ceilings and enlarged, sweeping windows will always be a popular and affordable way to highlight the design of the home and accentuate space,” Patterson explains. 

Other ideas include reusing or recycling materials from the old home; using standard-sized or off-the-shelf materials, fixtures and fittings over bespoke ones; and reducing your new home’s environmental footprint, which will save money in the long run. 

“Building new allows you to enhance the energy efficiency features of your new home, minimising your future power and water bills,” Patterson adds. 

Engaging an architect and interior designer is not the only way to create a customised home design, either – a builder like Simonds can provide many of the frills without the price tag. 

One example is in the SkyRidge community on the Gold Coast, which gives an idea of the luxury and quality you can achieve in a ready-to-build home.

“Our Headland 43 and Hinterland 58 display homes at SkyRidge is a perfect example of architectural design, luxurious amenities and high quality construction standards that our clients can expect on a knockdown rebuild project of their own,” Patterson says.

“In Victoria, our new Tallowood 52 at Berwick Waters also does an incredible job of showcasing what’s possible for homeowners considering a knockdown rebuild, as does our Berrick 38 at Seaford Heights in South Australia.”

This article was originally published on realestate.com.au.