Renovate or Rebuild: Choosing the best option for your family

You've decided that it's time for your house to get a fresh look - perhaps you've outgrown it, you've got a growing family or you just want more space. You may have just bought an older property in the ideal location with the intention of renovating or rebuilding. You can visualise the perfect home in your mind.

All the questions creep in. Which option is right for you? What do you need to think about? How long will it take. And the big one...how much does it cost?

It's important to ask all of these questions and more! Here are nine important factors to consider when choosing between a knock down and rebuild (KDR) versus renovation so you can achieve your dream home.

Knock down rebuild or renovate: 9 Questions to ask before deciding

1. How much does it cost to knock down, rebuild vs renovation?

Of course you're concerned about the bottom line (who isn't?). So is it cheaper to knock down and rebuild (KDR) or renovate? Well, that depends.

Renovation per square metre cost

The cost of renovations per square metre in Australia vary depending on different factors such as the location, the extent of the renovation, the quality of materials and finishes you want to use and whether there are any unexpected curve balls along the way.

As a guide, the average cost of renovating an Australian home is about $4,000 to $5,000 per square metre. A more extensive renovation with high-end finishes and fixtures will cost more. These costs typically cover labour and materials but may not include the design or planning services or permits.

The cost per square metre can also vary based on the type of renovation and whether you're looking at an entire home renovation or just a couple of rooms. A kitchen renovation, for example can cost upwards of $45,000 or more for a high-end result; and a bathroom renovation generally costs from $15,000 to $30,000 or more. And remember all the hidden costs that can come with renovation projects.

Rebuild per square metre cost

The cost of rebuilding per square metre varies depending on the size of the home, the complexity of the floor plan, inclusions and how much site preparation is needed.

Rebuilding costs in Australia also depend on the location. If you're building a single storey house in Brisbane, costs can range from $2,800 to $4,950 per square metre. While this is just an estimate, average square metre rates for building a new home usually include labour and materials.

In addition, you’ll need to consider costs for preparing and clearing the site and associated costs like permits as these are not usually included in rebuilding costs.

Larger or double storey homes can cost more per square metre than single-storey homes with a more simple layout.

Be aware of hidden costs of knock down rebuild projects! Unexpected costs can include changing clay pipes to PVC or removing established trees. Demolition can cost more than you expect. Doing your research early on can help you plan ahead and ensure other costs don't break your budget.

Working with a volume builder like Plantation Homes on your new build can also save money compared with a custom designed home.

2. How old is your existing home?

It's not surprising that age is a factor in determining whether to knock down and rebuild or renovate your home. If you live in a beautifully-preserved older Queenslander, you may go for a renovation to pay your respects to its history and keep those traditional features.

Challenges with renovating older homes

If the home is older and not built well or has an old-style floorplan, there may be structural or other issues that can increase the cost renovating.

Homes built decades ago may have outdated plumbing, wiring and insulation that no longer meet modern standards so you may need to upgrade these systems as part of your reno.

Older homes are often built with smaller rooms and lower ceilings which are different to the open and airy modern home designs. While renovations can open up space, the original layout and structure can restrict your options.

How to find out the age of your home

Check out some of the documents associated with your home - the contract, sewer/drainage plan or the date the meter box was installed can be helpful. Alternatively, ask your local council for the records associated with building in your street.

3. What is the condition of your existing home?

If your current home is in good condition and needs only minor repairs or updates, a renovation may be more practical and cost-effective.

If the home is in bad shape or needs extensive repairs, a knockdown and rebuild may be the better option. Serious structural issues, water damage or termite damage that can't be easily repaired are red flags that may indicate a knock down rebuild is a better option.

Existing home too small for your needs? Need more space at your place? Want a new home that better suits your family's needs and lifestyle? A rebuild is a better option if your current home is too small or requires you want something more up-to-date.

4. Are there council restrictions?

There are usually council restrictions on renovating or knocking down and rebuilding a property. These vary depending on the local regulations, zoning laws and building codes.

If you're planning to renovate, you may need a building permit from your council before starting the work.

If you're planning to knock down and rebuild your home, you'll need to obtain a planning permit and a building permit first. The council may have requirements for things like setbacks from the property boundary, maximum building height and the percentage of the property that can be built on.

5. What is the state of the property market in your suburb?

If you're in an area where vacant land is rare and close to desirable locations such as the city, beach or bay, knocking down and rebuilding allows you to stay in an area you know and love.

Take a look at the other properties in your area. Have homeowners been renovating existing houses or knocking down and rebuilding? Which option would set your home apart from those around you?

Local real estate agents often have a good understanding of local market conditions and many are happy to share details about recent sales or current trends.

Knowing what types of homes are popular with buyers can give you a better idea of features that may increase your home's value.

6. Who will manage the project?

Many homeowners find renovation more time-intensive and laborious. Sourcing and managing contractors yourself can create all kinds of headaches.

Rebuilding from scratch is often he best option for a larger upgrade - that way you can leave the project management to someone else!

As there home builders have streamlined systems in place for building brand-new homes, your builder takes care of the trades, contractors and other aspects of the build.

It’s typical for knock down rebuild projects for the home owner to source a demolition company to remove the existing building from the block.

7. What orientation is your home?

When deciding between a knock down rebuild or a renovation, considering how your existing home interacts with its surroundings can help you work out what's best for your family.

The ideal scenario is one where your house has access to northern sunlight (especially in the living areas).

A rebuild allows you to make the most of your position and optimise home orientation even if the block is not north-facing.

Queensland’s subtropical climate means cross ventilation is important for keeping your home cool. If your current home doesn’t allow for good airflow, a knock down rebuild gives you the flexibility to consider breezeways and window placement that maximise natural ventilation.

8. How long will a rebuild take?

The time it takes to renovate a home versus knocking down and rebuilding depends on the scope of the project, the materials used and of course, who is managing the project.

Major renovations such as changing the floorplan or updating plumbing and electrical systems can take several months or more to complete. Renovations often uncover hidden issues—like structural problems, outdated wiring, or plumbing—that can extend the timeline significantly. A rebuild starts from scratch, reducing the risk of unexpected delays and complications.

A complete knockdown and rebuild can take anywhere from 8-12 months to complete. The timeline can vary depending on the availability of building materials and labour, weather conditions and council approvals.

With a rebuild, you move out during construction, so the build can proceed without interruptions common with renovations.

9. How will your life be affected? The renovation toll.

House renovations can require you to take a hands-on approach to organise everything - project managing the process from permits to subcontractors can be challenging but rewarding.

There is also a disruption involved with various subcontractors entering your house to undertake the work. Some aspects of the home may not be functional for a period of time. Should you choose to renovate and still live in the home, this can be quite an emotional toll to prepare for and very stressful for you and your family.

Rebuilding can prove more straightforward as builders take control of the site and don't have to plan around your presence which can save time.

Key takeaways when choosing between KDR and renovation

• Check with the local council before taking any action.
• Check with a local real estate agent or market value tool to assess market conditions.
• For a full home makeover, knockdown rebuilds can often prove less expensive than renovating.
• The rebuilding process tends to be more structured than renovating.
• Consider whether renovating will improve your home's livability.
• Consider the emotional and/or physical toll that embarking on a renovation can have.
• Rebuilding may take longer depending on the project.

The verdict: Should you knock down and rebuild or renovate?

Whichever option you choose, it's important not to overcapitalise. Overcapitalising is when the costs of your rebuild or renovation outweigh the market value it adds to your home.

If you live in a popular suburb, location alone may minimise your risk of overcapitalising. However, if your suburb is not doing well in the market, a smaller renovation might be a smarter option.

Now you're equipped with some background knowledge, you'll need to work the details out according to your family's needs, desires and budget. So what's it going to be? A rebuild or renovation?

The choice is really yours, but for more insight into the process of a knockdown and rebuild, read how Plantation Homes can guide you through every step of the way.