Knockdown and Rebuild vs. Renovations: Which Is Cheaper?

Do you have your eye on a property in a great area in Canberra, but the house itself is completely outdated? Perhaps you started working from home on a permanent basis and need to transform an unused space into a home office? You have two options: knockdown and rebuild vs renovations.

That said, deciding between knockdown and rebuild vs renovations can be challenging. Not only are there financial impacts to consider, but you’ll also need to look at it from a practical point of view. For example, will you be able to stay on the premises while they renovate? To help you with this exciting but daunting process, we’ll take a look at it from a financial point of view to figure out which route could cost you less.

All about renovating your home

Opting for renovation is a popular choice if it’s an older property and if you would like to keep some of the character. Here are some of the other main considerations that you need to keep in mind.

Advantages

Most of the time, it’s easier to obtain planning permission for a renovation project than for building a whole new house. Not only will this step of the process take less time, but the project as a whole will also go faster which means that you’ll very likely be able to move back into your home sooner. As a matter of fact, in some instances, you might even be able to remain on the premises for the duration of the renovation project. This can help to keep the costs down as you won’t have to spend extra on alternative accommodation.

Also, from an environmental point of view, opting to renovate can be better. Not only does it require less energy, but you’ll also be able to keep and reuse some elements and material. This means that less building waste will end up in the landfill.

Disadvantages

The major disadvantage of choosing renovating over rebuilding is that you have less customization options. For instance, if there’s a load-bearing wall, you’ll need to design around the wall.

Also, before you start on your project, you’ll never be entirely sure about what exactly you’re dealing with. This could mean that you might be in store for a few nasty surprises which can throw you off your budget significantly. Worse, it could mean that your first design is no longer feasible which will mean you have to go back to the drawing board.

How much does it cost to renovate your home in Canberra?

There are various factors that will impact how much it will cost to renovate your home in Canberra. While a minor bathroom renovation can cost about $20,000, it’s not difficult to rack up a bill of more than $300,000 for a full home renovation.

A closer look at knockdown and rebuild options

In short, the knockdown and rebuild approach requires that you demolish a structure so that you can build a new one to replace it. This means that you’ll usually need to level a block and remove all structures on it (including the structures that might be underground).

Advantages

The most obvious advantage that the knockdown-and-rebuild approach offers is that everything will be new. Not only can this give homeowners more peace of mind, but it also gives you the opportunity to design it basically exactly like you want. This means that you won’t have to apply ingenuity to find solutions for features that can’t be altered. Plus, it’s easier and more cost effective to look after a new home.

Disadvantages

As you’ll be knocking down an existing structure, there will be a lot more building rubble that ends up in the landfill. So, from an environmental point of view, it’s often regarded as less eco-friendly.

That being said, when you opt to rebuild your home from scratch, you’re in a position to implement greener technology and low-impact building practices. Also, there are certain materials such as terracotta roof tiles and timber that can be resold by the demolition crew. Not only will this help to lower your costs, but it’s kinder to the environment.

How much does a knockdown and rebuild cost?

A demolition can cost anything from $20,000 to $40,000. Factors like accessibility and the removal of tree roots, asbestos, footings, or old pipes can increase the price. For example, if the house still has asbestos that needs to be removed, it can increase the price by as much as $10,000 depending on the amount of asbestos and where it’s located.

With regards to how much it will cost to build your new home, you’re looking at about $320,000 – $500,000. This will depend on several factors like the design, materials, size, and fixtures. The average cost to hire a home builder in Canberra is anything from $85 to almost double that amount, but it’s more straightforward to get a quote for the entire building project. To give you a better idea of what you can expect to pay if you opted for a fixed fee, the cost for a new home built per square meter is $1,700 to $3,400.

So what should you do: knockdown and rebuild vs renovations?

There are just too many factors to say beforehand which option will work out cheaper. That said, there’s one major cost that you’ll always have to pay when you opt to renovate instead and that’s limited customization options. When you design and rebuild a home instead of merely renovating it, you’ll be able to get the home that you’ve always dreamed about.

Whether you need an energy efficient single-storey home or a more spacious two-storey home, the team at Canberra Home Builders can help. Canberra Home Builders is fully insured and is a proud member of the Master Builders Association of New South Wales. Contact us now on 02 6171 6104 or complete the inquiry form so that we can start dreaming about your ideal house together.