Property investor Anna Vountoulas was planning to renovate her Gladesville property – until she crunched the numbers.
Instead, she replaced her run-down two-bedroom cottage with a brand new home and granny flat, transforming the low yielding investment into a dual-income earner. The build has boosted her rental return by over $1000 per week, potentially paying itself off in little over a decade.
If you’re contemplating whether a knock down rebuild is for you, here are five things to ask yourself first.
A dual-occupancy home could be more affordable than you think. Picture: Hamptons Façade on the Mayfield MKII at Leppington.
1. Should I renovate or move instead?
If you love your neighbourhood but not your home, the combined costs of selling, and stamp duty on a new purchase could be better directed towards upgrading your existing property.
While renovating may seem like the more affordable option, in reality it can cost up to 10 per cent more than a rebuild, according to some estimates.
When Anna did the sums, rebuilding stood out as the most cost-effective way to improve her property.
“I’m a big fan of renovation and was really keen to look at it as an option, but I couldn’t fault what we got with Rawson Homes,” she says. “From the design and ideas to the affordability, communication and timeframe, it was all amazing.”
A new home means you won’t have to worry about maintenance and repairs. Picture: Laundry in Derwent 27 at Elara.
The new home relieves Anna from the constant repair bills for the old cottage, and maximises her property’s potential in its popular inner-west location.
“We were pouring a lot of money into repairs,” she says. “The walls were mouldy and there were always problems with the kitchen and laundry. With a new home, we won’t have to worry about repairs for a long time.”
If you’ve decided to start from scratch, avoid unexpected costs by choosing a builder who is transparent in their tender pricing. A quality project home can offer vastly greater value than a bespoke build. By going down this route, you’ll also save money on architect fees and benefit from the builder’s economies of scale.
2. Where will we stay?
Having a clear timeframe will help you make suitable accommodation arrangements, whether it’s with family or in a short-term rental.
If the weather is kind to you, the construction time with an experienced builder is generally quite predictable.
Anna received the keys to her four-bedroom house and two-bedroom granny flat in early July. Rawson Homes took just 10 months to complete the project from knock-down to handover.
Minimise the time between homes by sorting out all of the paperwork before you move. Picture: Kitchen in Evoke 23 at Leppington.
While the duration of the build will vary according to the site conditions and local council, you can help to minimise your time in limbo by sorting out all your plans, contracts, selections and council approvals before you move.
3. Can I subdivide?
New state-wide regulations have made it easier to get approval for dual-occupancy developments, manor houses and terraces.
If your block meets minimum size and width requirements, and your council’s planning laws do not forbid two-storey or terrace-style homes, approval can be sought with a fast-tracked complying development certificate (CDC).
The additional home can be sold to fund the one you live in, be kept as a source of rental income, or house extended family members.
Consider how your block could be transformed with a knock down rebuild.
For Anna, including a granny flat has provided a lucrative second income stream from her investment property. The package for the two-storey brick and gyprock house, plus full brick granny flat, came in under $550,000.
“It was incredibly affordable,” says Anna. “To get what I wanted, it definitely made more sense than a renovation.”
Relinquishing half your block need not feel like a sacrifice, with a new, two-storey home typically making more efficient use of land than an older single-level home.
4. What will be the most functional layout?
Write a wish list for your new home that complements your family’s lifestyle. For example, most contemporary homes ditch formal living and dining rooms in favour of a theatre room, home office or children’s play space.
In a double-storey home, an additional bedroom and ensuite on the ground floor could be a handy addition for when grandparents come to stay.
Consider including additional living spaces in your new layout. Picture: Study in Novera 34 at Leppington.
Outdoor areas tend to be an after-thought in older homes, but a contemporary design should flow naturally between living and alfresco areas to create a greater sense of space.
5. How can I make it future-proof?
One benefit of a new build is that it provides an opportunity to incorporate the latest technologies, building materials and methods. BASIX requirements for new homes ensure a high standard of water and energy efficiency, making them more comfortable to live in and cheaper to run.
New homes also avoid the ticking time bomb of outdated wiring and old plumbing, incorporate provisions for NBN and include the latest appliances.
New homes have a high standard of water and energy efficiency. Picture: Ensuite in Chifley 37 MKI at Leppington.
Other factors to consider include the durability of the finishes you choose, whether your wiring is conducive to smart home automation, storage provisions and how you will re-purpose spaces in the home as the needs of your family change over time.
