How to avoid hidden costs when you knock down and rebuild
by Carlisle Homes
Building a new home is an exciting, but sometimes daunting experience - especially when it comes to understanding and managing the costs involved. One of the biggest concerns for homeowners considering a new build on vacant land, knockdown rebuild or renovation is the potential for hidden costs that can arise during the building process. These unexpected expenses can quickly turn a dream project into a stressful one.
At Carlisle Homes, we are committed to offering transparency and full pricing clarity for all of our new home builds, ensuring that homeowners have a clear understanding of all costs right from the beginning. This can really help with planning and budgeting, but also in the level of confidence customers have in knowing there won’t be any surprises along the way! However, not all builders offer the same level of information upfront, so it’s important to understand the key expenses and factors that can influence the final contract and build price of your new home.
Knocking down your existing home and rebuilding can offer an extremely cost-effective way to achieve your dream home in your existing or preferred location, but only if all expenses are known upfront and managed effectively. And while more predictable and cheaper per square metre than a renovation, there are some costs to be aware of including demolition and council permit costs. Here’s what you need to know about undertaking a knock down and rebuild project and how to avoid any hidden cost surprises.
What you need to know about fixed price contracts
Many builders offer contracts that do not have fixed prices, which means the cost of a new home build can change depending on things such as market conditions, material costs, supplier changes or unexpected delays in the building process.
When you choose to build with a reputable and trusted builder such as Carlisle Homes, all costs related to your build are available and clearly outlined at the beginning of your journey. When you are first researching the possibility of building a new home, Carlisle makes it easy with the base price of our homes clearly listed on our website against each floorplan - when this is often hidden or hard to find with other builders. Once you sit down with one of our specialist knockdown rebuild Sales Consultants and chat about the wish list for your new home, pricing for facades and estimates for upgrades are provided.
Once you have paid your first deposit, a soil test and survey is conducted on your land to estimate foundation costs for your new home, which will be confirmed with a second soil test and survey prior to contract signing. As part of your build process with Carlisle Homes, you will make all the colour, fittings and fixtures and electrical selections for your new home at Spectra - our industry leading customer showroom, with all costs provided as part of this process. When it comes time to sign your HIA Building Contract, all costs will be outlined for you to approve before commencing construction.
Guaranteed build times
Without guaranteed build times, you may end up paying extra rent or living in temporary accommodation for longer than expected, or pay more interest on your existing home loan than necessary. This is a common complaint for unbudgeted expenses. Carlisle Homes offers guaranteed build times, ensuring that your project stays on track. We lock in your site start date and guarantee that your new home will be ready on the stated completion date. No delays, no excuses. This commitment not only gives you peace of mind, but also helps with budget management and scheduling.
Understand the specific build process knock down and rebuild by exploring our brochures and stages of construction.
Comprehensive Site Assessments
Carlisle Homes conducts two site surveys to assess your block of land thoroughly. These surveys allow us to identify any potential issues, such as challenging soil conditions or difficult access, that could increase costs. By understanding your site’s characteristics upfront, we can provide a fixed price as part of your contract, minimising the risk of unforeseen expenses later in your build.
Keen to understand more about the knock down rebuild process? Then download our 60+ page Information Pack.
Customers exploring over 3,500 selections choices in our industry leading Spectra Showroom.
Planning for demolition
Demolition is an important difference in a knockdown and rebuild project, compared with building on a vacant block of land. As the property owner, you are responsible for demolition of your existing home, and these costs are separate to any building costs associated with Carlisle Homes. However, when you choose to build your new home with Carlisle, we provide comprehensive information and guidance on all demolition-related costs, helping you to navigate this crucial step to ensure your budgeting is accurate and stress-free.
This includes considerations for:
- Site access
- The quantity of materials t be removed
- Asbestos identification and removal
- Site clearing
- Demolition permits
- Asset Protection Permits
- Overhead power to underground power and abolishment of services
- Temporary fencing during demolition
You’ll need to source an appropriate demolition contractor and source quotes for removing your existing home.
For a full detailed list of the various permits and applications relevant to a KDR project, who manages them, where they can be sourced from and the cost estimates for each, please download our KDR Information pack.
The certainty of a structural warranty - specifically 25 years!
Investing in a knockdown rebuild with Carlisle Homes also means investing in long-term peace of mind. Our 25-Year Structural Warranty protects you against any major structural issues that could arise with your new home, saving you from potential future costs related to repairs or structural defects. This warranty is an essential part of ensuring that your new home remains a valuable, low-maintenance asset for years to come.
Long-term cost considerations (and savings potential!)
A knock down and rebuild project has long-term cost benefits that homeowners are sometimes unaware of. When renovating, you’re usually limited by the same walls, structures, roofline as your existing property. With a knockdown and rebuild a huge advantage is that your new home will meet a minimum 7-star energy efficiency rating, which not only contributes to a more sustainable environment, but also reduces the ongoing running costs for your new home. Correct orientation of your new home on your block plus the use of high-quality materials such as Hebel and double glazing reduce your reliance on heating and cooling systems, as your home will be passively warmed by the sun - making for a brighter, lighter and more comfortable home year round and a significant reduction in your maintenance and running costs, offering huge savings over time.
When built to a minimum 7-star energy rating, your new home will not only be cheaper to run, but more comfortable year round.
A knockdown rebuild success story in Essendon West
Budding interior designer Priya and husband Sameer couldn’t wait to bring their dream home to life. Having purchased an old home in their existing neighbourhood with the sole intention to knockdown and rebuild, they discovered Carlisle Homes and instantly fell in love with the light and space that their home designs offered.
Read more about Sameer and Priya’s knock down and rebuild journey
Additional knock down rebuild costs to factor into the budget
In addition to the core costs of demolition and construction, there are several other potential expenses to consider. These can include:
- Planning Permits: Fees and processes vary between councils, but planning permits are essential for any knock down rebuild project.
- Temporary Accommodation: Renting a place to live during the build adds to your overall project costs.
- Utility Disconnections and Reconnections: Costs for disconnecting and reconnecting utilities such as electricity, water, and gas.
- Landscaping: As your block will be cleared for construction, budgeting for new landscaping is essential, especially if you are dreaming of a new pool or fancy entertainment area.
- Final Touches: Driveways, paths, and fencing are often not included in the initial build cost, so you’ll need to factor these into your budget.
Keen to learn more about a knockdown and rebuild? Listen to Season One of our Home Files podcast
Our industry-leading podcast contains everything you need to know about knocking down and rebuilding a home, from timelines and costs to styling advice. Listen at your convenience - available wherever you get your podcasts.
Carlisle Homes offers a low-risk knock down rebuild experience
It is important when undertaking any build project that you understand all costs, making it crucial to choose a builder you can trust who prioritises fixed priced contracts, cost transparency and helpful customer service, ensuring you are comfortable, confident and in control as you set out to build your dream home.
By choosing to build with Carlisle Homes, you’re opting for a process that minimises the risk of hidden costs and ensures transparency at every stage. From upfront pricing and transparency to fixed price home contracts, guaranteed build times and comprehensive site assessments, Carlisle Homes provides a clear and predictable path to your dream home. With our 25-Year Structural Warranty and commitment to energy efficiency, you can be confident that your investment is protected and that your new home will be both beautiful, comfortable and cost-efficient.
Learn more about knocking down and rebuilding with Carlisle Homes.
Living as seen in our Sorrento Grand Deluxe Atrium Balcony
Ready to start your knock down rebuild?
When you choose Carlisle Homes, you know you’re building a house of exceptional quality that you’ll be proud to call home. And we have the industry accolades to prove it; we’ve been named Australian Professional Major Builder 2023 by the Housing Industry Association (HIA), Best Large Residential Builder 2023 by the Master Builders Australia (MBA), and HIA Victorian Professional Major Builder 2023.
Contact our team of knockdown rebuild specialists today to learn more about how we can help you achieve your dream home in your preferred location, with no unexpected costs or surprises.
To start the process, your Sales Consultant will need:
- An accurate and full copy of your Contract of Sale of Land, including your Land Title document.
- Any ideas you have about your preferred home design from the Affinity Collection or Inspire homes.
Read about the entire KDR process here
Carlisle Homes - Your knockdown rebuild specialists.