NSW Rebuild or buy another - dilemma

Hello Guys,

We own a 3b house (aged ~50yrs and pool) in NW Sydney (~650sqm land size), probably at 950-1m mark and happy with the location and school catchment. But now we are feeling house we need extra space/bedroom, bigger kitchen etc as kids grow up. This house will definitely need some $$$ to do ongoing fixes (eg expensive job of garage fix, rotating retaining wall, roof, plus many small things etc). So we are trying to think whether to rebuild or buy another bigger and newer house in same locality. The newer/bigger houses are ~1.3-1.5m mark. We have some saving in around 400k mark.

Given this state, what are your thoughts or ideas for us.
May be someone might have gone through similar dilemma.
I know there are many unknowns here, but still if you can share any thoughts which will help us to make some decision it will be highly appreciated.

Thanks in advance!

 

Pros of building new

• You get to choose the layout you like
• Choose fixtures you like
• You are happy with the location
• Keeping this current place means you don't need to incur selling costs with this property, and don't need to pay stamp duty again. Effectively, doing this will be an expensive exercise

Cons

• Whilst you save on selling costs and stamp duty, you will have holding costs for the phase during construction. Plus you will have rental outgoing, unless you can live with family during this time?

How did you arrive at $400k saving between the two options?

 

Thanks for the inputs.

Re How did you arrive at $400k saving between the two options?
>>> Not between these two options. I was just saying its our current savings in offset account.

 

So sell and buy, giving the top of your quoted range, you sell for $1m and buy for $1.5m. Add sell/buy costs of $100K.

So the difference is around $600K.

Would you be able to build your ideal house for $500K, (allowing $100K for renting elsewhere and other unforeseen costs)? If so, rebuilding may give you a good outcome.

 

Now this is my opinion only so my thoughts are:

Extend your existing house to the size you need.

You got a good size block, location etc

If you sell and buy another you'll be up for over $70K in stamp duty etc (I can just see Gladys and the Treasurer chucking high fives). With that money you can put gold taps in.

Or how about you put a 2 bedroom granny flat in the back? $150K should do a nice one. Your kids will love that in the near future.

You can thank me later.

 

side Q, since there are many things in our current house which needs to be fixed plus the retaining wall on garage side is almost falling off and garage will be damage with it, I heard in past its kinda big job.

So I am not sure who (which type trade person) will help to assess whole property and suggested things to repair ( must, may be, low priority)? Will it be some sort of licensed building renovator?

 

I'm sure an experienced trustworthy builder could give you an idea. might need the opinion of a landscaper as well.

 

You might consider getting in contact with Archicentre Australia for a discussion with an architect who could work through the various scenarios with you as well as scoping other works which would be required.

Depending upon what you intend to spend on a knockdown/rebuild from a volume home builder $500k would probably see you out, you might save $100-200k with extensions and refurbishment as you won't need the entire house rebuilt. If you go for a high end house builder it may cost you upwards of $700k.

Rentals - probably around the $50k/year but a rebuild should take less than a year (6-8 months).

 

How does it work for getting rid (demolishing) of existing house? Is there any standard cost or % associated with it?

 

No. Council permits. Disconnect services. Actual demo incl fencing and waste. All subject to site and timing and availability of competitive trades. Then a new permit to rebuild etc

There are many project builders who may quote the whole KDAR (Knock Down and Rebuild)

 

One thing to note, rebuilding might end up giving the property a much higher value. I know you are not planning to move, however it can provide you with equity that otherwise the current house isn't able to.
Have a look at the current houses for sale in your vicinity and try to gauge what a new build might be worth.