In this article we look at what could be classified as the most extreme of renovations or the most difficult of new house building: the knock down and rebuild.
Building a House via ‘Knock Down and Rebuild’
The knock down and rebuild is more common that you might think. It’s not that unusual for an elderly person to be living in a home that they have had since they were young. Chances are that such a home is old and small, but in an area that is highly sought after. The next time you are around a waterfront “millionaire’s row,” just have a look to see if there isn’t a little old cottage nestled in among the polished mansions. One day it may become a knock down and rebuild project in building a house for someone.
This situation also comes up in city areas where housing density is increasing. An area with the old quarter acre blocks is very much in demand and the council is quite happy for the density to increase providing them with more rates and less infrastructure demands, not to mention the fees that they get to charge for the creation of additional land titles. Sometimes the old home can be maintained as the block is subdivided and units are added, but more often the most profitable course of action is to knock down, subdivide and build everything brand new.
So, a knock down and rebuild situation can occur in an area with very limited supply of vacant land, very high demand for the land that is there and existing housing that no longer suits the location.
If this is your plan, keep in mind that it’s not just a simple matter of bringing in a bulldozer, creating a flat spot on the ground and beginning to build. Chances are you will not be selling the old building for someone to relocate, but when you go to demolish it you are going to have to deal with asbestos and possibly other hazardous waste materials. The nature of the existing foundations will make a difference for anything new that’s built over them. In some cases the old foundations will need to be fully excavated and replaced with new reinforced concrete. Most likely the existing electrical supply, water supply, storm water drains and sanitary sewer pipes are going to need to be replaced. Your architect and engineer will need to work all of those things out. Needless to say, all of this is going to ramp up the cost as compared with building on vacant land.
House building loans
Whatever approach you take to getting into your dream home, you are going to need the money to make it happen. State Custodians Mortgage Company can help, whether you are building a new house or undergoing significant renovations. Give us a call today on 13 72 62.