Considering whether you should undertake a knock-down rebuild project or purchase a house and land package? Today’s article is all about comparing the two options, providing you with the information you’ll need to help decide what’s best for your situation and goals. So let’s get stuck in and start comparing the two.
Is it better to knock down and rebuild or buy a house and land package
Like a lot of choices in the building industry, the right one for you will depend on your situation and what you hope to achieve. A knockdown rebuild is ideal for someone who:
- Loves their current location but wants a new house
- Has found an ideal location but doesn’t want the pre-existing house that is there.
- Considering renovating. A knockdown rebuild may be a more effective way to achieve your goals.
Whereas, a house and land package is better suited for someone who:
- Wants an affordable home built quickly.
- is looking to buy into a master-planned community.
- Does not have an existing home or land to buy
Knock down rebuild or house and land packages – Six factors to help you make a decision
Is a knockdown rebuild even an option for your current home?
First thing first: is a knockdown rebuild the right option for you? One of the biggest determining factors will be the land you’re building on. If your property is relatively flat and all your soil tests come back looking good, you should be all good to conduct a knockdown rebuild.
If your home is a heritage listed, is on a sloping block, has setbacks in line with neighbourhoods, are in close proximity to power lines or a highway, these are all factors that will hinder or even completely rule out a knockdown rebuild. You’ll also need to get approval for your new home design from your local council before you can begin construction.
Is it cheaper to knock down rebuild or buy a house and land package?
Both options require considerations and expenses outside of building the house itself. For example, during a knockdown rebuild, you won’t be able to live in the house and will need to find accommodation. However, if you already have a block, you won’t have to buy the land itself which, depending on where you are, could be a huge saving.
Knock-down rebuild projects tend to be more expensive than a house and land package if you’re buying a pre-existing house and then knocking it down. If you already own the property, it may actually be cheaper than buying a house and land package. However, this can vary depending on where you’re buying a house and land package. An in-demand location will raise the asking price considerably.
With any project, it’s recommended you have an extra 10% over your planned budget to account for any contingencies or unforeseen issues. If you end up not needing it, consider it a nice bonus.
What timeframes are you working with?
With a demolition phase, there will be added time to the construction process. On average a knockdown rebuild will take between eight to 12 months, but there are a lot of variables, and delays are common in construction. The building approval process can be time-consuming and easily add months to the timeframe. Beyond paperwork and permits, details like the size of your house, whether it is a single-storey or double-storey home and other elements can affect your timeframe.
Can you fit your dream home onto your existing block?
Whether you can achieve your goals for a new home on your existing property will play a major role in deciding whether a knockdown rebuild will work for you. This is where the logistics really start to come into the equation. If you wish for a larger house, you could replace your current home design with a double-storey home.
Are you happy in the area you currently live in?
Do you love your neighbourhood, and the nearby facilities and don’t want to uproot the family? A knockdown rebuild can be a great way to have your cake and eat it too, allowing you to have a new house without giving up your beloved location.
What are market conditions like?
One reason someone may choose the knock-down rebuild route is that land is scarce in their location. No matter how valuable your land is though, you need to try to avoid over-capitalising on your property. The last thing you want is to spend more money rebuilding than you’re likely to get back if you ever plan to sell. For more information, talk to a building broker or local real estate agents about the market in your area.
When it comes to capital growth, house and land packages tend to have slower growth in land value than the market average. This is due to their locations often not being in an established area, which often means facilities and amenities aren’t as plentiful as other areas. New areas also just don’t have the name-recognition or the time to build a reputation the way established suburbs do. Master-planned developments also need space and therefore tend to be in more remote locations.
How we can help you find a luxury home builder in Brisbane
At Buildi, we help you find the right builder, save time, reduce stress and stay on budget.
How We Can Help You
Building a home is one of the biggest decisions you’ll ever make. At Buildi, we’ll be there throughout the entire building process, guiding you step by step so you can avoid any pitfalls. We will help you by following these steps.
- Free Consultation – We will sit with you to understand what you are looking to accomplish.
- Due Diligence – We work with you to ensure you’re buying the right block of land at the right price without hidden problems.
- Builders tender – We will take your requirements out to the market of builders and they will bid to win your business.
- Present solutions – We will compile the top 3 options and present you with a comprehensive proposal on builders’ strengths & weaknesses along with prices and specifications.
- Contract Signing – We will work with you and your selected builder to ensure there is full transparency in what you are entering into.
- Building your home – We work closely with the builder to ensure all service levels are met and your project is on schedule.
5 reasons why a knockdown rebuild is a better option
Allows you more flexibility in terms of location
House and land packages by design are going to be in specific locations. Knockdown rebuilds can be done in most neighbourhoods.
More Choice in design
Most house and land packages are fairly set on the floor plans you can choose from. With a knockdown rebuild, you’ll have more flexibility with how your new home looks.
More Choice in builders.
Every house and land package will be tied to a specific builder. This isn’t necessarily a bad thing, but if you want more choices, most builders offer a knockdown rebuild option these days.
Keep your current location
Do you love where you are but want a new house? A knockdown rebuild allows you the option of having the best of both worlds.
Potentially a better investment.
This will depend entirely on where your block of land is. If you have a prime location, you can build your new house and still watch the value of your property rise.
5 reasons why house and land packages are a better option
More streamlined process
The big appeal of house and land packages is it simplifies the building process. This does come at the cost of some choices and flexibility, but whether this matters will depend on you.
Great way to get a spot in a master-planned community
House and land packages and master-planned communities tend to go hand in hand. These communities also tend to have a display village you can visit.
Cost Savings
Buying a house and land package will likely be more affordable than purchasing a pre-existing house and then performing a knockdown and rebuild.
Quicker Build
This may vary in some cases, but on average, a house and land package takes less time to build than a knockdown rebuild project.
Key takeaways
Consider what your goals are with your new building project and that should help you determine which approach is best for you. Knocking down and rebuilding best suits those who either want to stay where they are or those who have found the perfect location but want to build their own dream house. A house and land package is likely to be quicker and is a great way to buy into a master-planned community.
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