End to End Knock Down Rebuild Process in NSW - what is it? where to start?

Hello, apologies newbie here.
I was recommended this forum as a starting place for my questions.

Background: I have recently returned from the UK, having lived my proper adult life there.... we have 9 properties there and rebuilt 2 (gutted and extended). I've brought a young family back and we want to buy to live in a typical australian family home- but many things we look at are knock down rebuild. I have huge doubts that it would be as easy or inexpensive as it was to do twice in the UK (where we had friends in the industry).

Question: What is the end to end process for a knockdown rebuild and what are the likely costs?
An example of what I would have done in UK:
- choose property, have an idea of what you want to do
- send in independent surveyor to assess land and structure (£1600 for a serious survey)
- send in builder for ballpark quote (No charge to quote)
- hire architect and draw up plans (.uk friend.. only £1500 the plans)
- in .uk architect takes care of planning permission and we just pay fees to council for submission (£600ish)
- builder requotes based on architect plans and we're away with the builder taking care of meeting and having building regs approved....

Had a great builder last build and was able to work on a complete gut and refit a 2br terrace all in for £50k he was a friend again so was able to really work with him to know when costs come up and make changes to stick to budget

Other points
- people have mentioned registering as an 'owner builder' and self managing - pros vs cons?
- we are generally looking at the central coast / hunter nsw areas

 

Thanks.... understanding the end to end process and costs will help us understand how far our cash goes.

 

Make sure you get local property tax advice on those existing UK properties. The foreign assets are now subject to AU CGT and this is generally based on the date you became AU tax residents. I often meet people who learn this later so getting your records sorted now would be wise. Could save you some $$$. You also likely need to be aware of some tax rules when doing a substantial build.

The UK and Australian systems are largely similiar but can vary by state and council a little. There are various forms of approval including CDC in some areas for SOME dev types. A complying development consent. In NSW you will need a Developmnet Approval to do any work (DA). Council website s will explain more. We also have certifiers OR council who can address that approval and it depends on council and dev type what your options can be. A town planner can assist this complex maze and can advise you. To confuse things each council will have its own town planners . They largely work like two solictors would - One has councils interests at heart and the other has yours.
You prob wont find terraces outside Sydney.

OB approvals are a whole different world and have strict limits on sale etc. A OB still needs limited licensing (permit) and often needs to undertake a course. These builds can be uninsured or subject to the contractor providing insurance where council approved DAs have statutory warranty insurance that is collected in the hefty taxes you pay council for approval.
Becoming an owner-builder
Council DAs will consider all this and council would refuse approval where a OB seems to be managing a project and they are unlicensed and have no permit. A OB can only build once in 5 years

 

1. Work out your budget and finances
2. Find the land or house you will work on
3. Purchase said land or house
4. Engage a builder - project home builder or custom home builder
5. Wait for them to finish building

With step 3 - you can either get a loan to purchase land and a separate loan to build or you can combine the two. Its difficult to combine the two because generally speaking there are a lot of decisions to be made that you cannot necessarily align at the same time.

With step 4 - you can choose to knock down yourself or get the builder to do it for you. I recommend getting the builder too, so they don't have any excuses when they start building.

In regards to your mention of the survey, this will all be done by the builder. In regards to the architects plans, this can also be done by the builder and I recommend this. When a builder manages the design they are also accountable for ensuring that the design sits within the quoted amounts or your budget and doesn't blow out. An architect is not a cost manager or coordinator, they are just a designer that if experienced enough have some inkling on cost, so more than likely they will just draw whatever you tell them too.

In regards to owner builder, what is your intention with this? If you want to save money, I don't believe you will be more competitive that an established builder. It will just afford you greater flexibility, but there are builders out there that do custom homes so this is not a great benefit either.

 

This would be the process from a town planner and builder's perspective:

1. Purchase (Due diligence)
- Planning affectations (Bushfire, flooding, heritage, contamination, ANEF - check 10.7 certificate)
- Title search - Title encumbrances (Easements, covenants, restriction to use)
- Physical attributes - slope of the land, obvious signs of overland flow paths (think - water travels downhill), any obvious rock formations of signs of reactive or unstable ground (cracks in the wall, peiring of neighbouring houses, piling etc), TREES, TREES, TREES
- Location - orientation (for solar access) main roads (classified roads) rail lines (Acoustic and vibration requirements), neighbouring properties which may impact your lot (retaining walls on the boundary, stormwater nuisance.

2. Survey and soil classification (borehole) report - Survey approx $1500-$2500 for a lot up to 1000m2, borehole $500-1000

3. Design - Engage an architect or draftsmen. Don't skimp on design. for a draftee expect to pay $3000-5000 for a house design, for a registered architect, expect to pay $7000+. This will be sufficient detail for both DA and CC. Also don't forget structurals $1500-3000, hydraulics $1-2000, landscape design $1-2000 etc.

4. Consent - either get DA or CDC. Always go CDC if it is feasible.

5. Tender - While the above is happening, when things are looking good (DA approval imminent), send plans out to builders and get quotes. Do you have a good feeling about them? Are they responsive? Are they underquoting to get you signed up then gouging you with variations? Ask questions, are they genuine? Are they passionate? Are they helpful? Do they have attention to detail? What's included in the price (are all wet area levels flush without steps, are they using H2 treated timber, sarking between external skin and frame, does the price include commercial grade or residential grade windows and doors, does the price include tiling in bathrooms from floor to ceiling or only up to 1.4m? Is the quote transparent or does it raise more questions than answers? Is the builder transparent and willing to answer all your questions? Are there allowances reasonable for the quality of the finish you want to achieve? (i.e. - they give you a $30/m2 tile allowance for a waterfront property in Mosman, that's an alarm bell)

6. Sign with the builder and start building

As you mentioned, many architects will look after the DA/CC/CDC, you may also wish to find a Design and Construct Builder. There are benefits with this. The build can be designed to budget, the build ability is ensured, the estimations are accurate (minus unforeseeable circumstances) and they look after everything from 2 to 6.

Good luck and feel free to PM me if you have any questions.

Gavin