If you’re living in an old home, or you want to update the style of your house because it no longer suits you and your family, then knocking down and rebuilding can be a more cost-effective option than buying an existing property.
Before delving into this venture, it’s imperative that you do your research to make sure everything will go as planned. This article will tell you some important things to consider first when knocking down and rebuilding any part of your house or even tearing down your entire home. Here they are:
Your financing options
Any type of home renovation costs money. Have you thought of how you’re going to finance the rebuilding of your house? A construction loan may be a suitable financing option for you because this type of loan is specifically designed for people wanting to build a new home.
Construction loans work differently than a standard home loan. Instead of drawing down the whole amount at the start like a regular home loan, you will be drawing down your loan in separate payments called “drawn downs” at each stage of construction.
Condition and age of home
This will be an important factor when knocking and rebuilding your property. If your house is in seriously bad shape because of its age and other factors, this can cost you a lot and it might be a better decision to just completely tear down the property and start from scratch.
Obtaining a council permit
Is your property listed as a heritage house? It’s important that you obtain a council permit before doing any major renovation to it because there might be restrictions as to what you can change or add to the house. If your plans are approved, you can hire an experienced contractor or builder who has knowledge on how to properly modify an old house.
Place you’re staying during construction
If you’re planning on completely knocking down and rebuilding your house, you will need a place to stay in during construction. Are you going to stay with a friend or a relative, are you going to rent an apartment, or stay in a hotel? Know your options on where you can temporarily live that’s within your budget.
Style of home
Rebuilding your home takes a lot of time, effort and money. Make sure that you are happy with the plans before construction begins so you won’t regret anything in the future.
18 June 2019
If you are struggling to afford the high price of a property in Australia’s capital cities, it can be tempting to save money up front by purchasing a “fixer-upper”.