Knock down, rebuild - how much?

Discussion in 'Development' started by inertia, 24th Feb, 2020.

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  1. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,100
    Location:
    Newcastle, NSW
    Always planning the next move... even if it might be 5-10 years down the track :)

    So this place is near where I live:
    219 Beaumont Street, Hamilton South NSW 2303 | Domain

    It has approx the same size block as mine, but I would say my block is in a slightly better position. Interesting to see the auction price guide... "Land value" for that block is $589k (mine is about $50k more). I would presume a knock-down and rebuild would not be $900k! What would be the ballpark cost for a knock down and rebuild like that?

    I suspect the additional gain would probably not be significant enough to do a knock down/rebuild as a profit making exercise... Not without being a builder or in some way being able to leverage knowledge or connections to get a reduced build cost. Could be an option to make my PPOR a rental again if/when we move, and be able to depreciate the build cost.

    Cheers,
    Inertia
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    15th Aug, 2005
    Posts:
    7,524
    Location:
    Gold Coast
    Always more than you expected ;)

    Ta

    Rolf
     
    Scott No Mates likes this.
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,302
    Location:
    Sydney
    I would work off around $2k per sqm turnkey so thats demo, landscaping, fencing, retaining walls, window furnishings, etc (all the things generally not included in a building contract).