Knockdown IP, Reduild for PPOR

Hi Guys,

Me and the wife have been rentvesting and we are now looking to purchase a PPOR (prefer house with backyard) but Sydney prices are so high it's deterring us from further looking.

We did some brainstorming and one promising scenario is to knowndown an existing IP and rebuild PPOR.

IP is in Chester Hill: 40-50yo fibro, 550m2, loan 500k, estimated value 750-800k, frontage 13m.

Has anyone done this before or thought of doing this? Would be great to get some insight.

Some initial homework I thought I could do:
1) find asbestos surveyor
2) find demolition people
3) visit show homes, speak to someone builders
4) See tax accountant, but who? PC have so many good tax agents !
5) See current lender

 

I would do it this way:

1.Confirm funds you have available for rebuild. Construction loans are a bit different from normal loans.

2. Find preferred house design and get quote.
Note that show homes (even cheap ones) are always more expensive than advertised once you take into account site costs like slab etc and the cost creep that happens when you add the 'extras' that many people want if it is going to be a POPR.

3. Get estimate or quote for demo of existing house (or this could be #2)

The Homeone Forum has a lot of discussion by new home builders and has a 'sticky' list of considerations (a what I wish I'd thought about before my build type thing) that is useful.

 

Depending on your finance situation, I'd suggest you get an idea off some realestate agents in the area you are looking at rebuilding in for a realistic end valuation.
Once you have a building contract A bank will do a tentative on completion value further down the track to work out your LVR etc.
I am in Melbourne and have just gone through the exact scenario....knocked down an IP and are halfway through the build.
I know it's a different city....but some of what I've been through may help you, feel free to PM if you like

 

@Joynz
Many thanks, that forum contains invaluable insight for anyone building their PPOR.

I went to some show homes today, they all look amazing with all high end finishings. When you ask for the price, most builders give you the standard cost and I see what you mean by adding extras.