Mar 18, 2021 8:02 pm
First time poster here. Member of other renovation sites but new here!
We purchased our current early 80's two story BV home in Brisbane about 12yrs ago as a renovators delight and have since done a bunch of stuff including bathroom, kitchen and deck. We chose this place for number of reasons, one of which was the fact it sits on 1200 m2. More accurately, two allotments - 640 and 620 m2. Our plan was always to consider one of them a land bank with a view to using it to fund a knock down rebuild. Importantly, we have a relatively small mortgage with over $400k equity.
The time has now come to make it happen. We've bought and sold houses before, but never built so I'm researching lots and often. It will be a downsize for us with the added benefit of no more renos as I approach retirement.
Our current home sits astride both (don't know what possessed the original owner to do that, but here we are) so we need to demolish first.
I'm entertaining three options:
1. Sell the second block and use the proceeds to do everything else. Easiest to finance but we'll lose control of the aspect and style of the home eventually built there.
2. Build two and immediately sell the second as new. Harder to finance but control the aspect and in effect neighbors views.
3. Build one, keep the vacant lot next door and either sell or build later.
Either way, we need to demolish and clear site first. Then there is the issue of living somewhere.
I'm at the survey and quote stage for demo (including pool) but not sure about site costs after that. A boundary survey will need to be done and sewerage and water split. I'd like to take the opportunity to do a little cut and fill (less than 500mm) which prob means a retaining wall.
I should mention, I'm not intending to owner build, preferring to engage a home builder.
I anticipate a 12-14 mth journey with many hurdles, but I reckon we're up for it. Interestingly, my main concern is rent plus mortgage repayments whilst building.
I know many have embarked upon this journey, but it's a first for us! I expect I'll be on here a lot.
Re: Knock Down Rebuild plus Investment - Beginning the Journ2
Mar 19, 2021 8:12 am
Sounds like an exciting journey ahead... given you have some concerns about paying mortgage and rent, it seems you don't want to extend yourselves too far, so I would take the following approach which would have the best tax and financial benefits and means you could stage your borrowings.
Build a new home on the least preferred block.. not your dream home but the one you would like to sell. Live in it for at least 12 months or more while you get your mortgage under control. In the meantime, plan and eventually build your dream home on the allotment you would like to keep. Sell the first home once your dream home has been completed and you've moved in. If you time this right, you should be able to align the settlement with you moving into next door.
This should minimise any capital gains and allows you to finance the cost of your forever home with the sale of the first home you built and also stage the builds so you don't over commit yourselves.
Hope this helps... good luck.
Re: Knock Down Rebuild plus Investment - Beginning the Journ3
Mar 21, 2021 10:24 pm
Can you fit a Granny Flat in the yard of the property you don't intend to live in before demolition? If so then maybe you build it, move into it and live next door to the new build while it's happening. It could then earn you some $$$ once you move next door to your new place or you could sell that block with a granny flat. Design it right and it could be out of the way of a new build or a structure that could be removed if the new owner didn't want it.
Re: Knock Down Rebuild plus Investment - Beginning the Journ4
Apr 18, 2021 8:37 pm
Hi All, Progress has been slow for a number of reasons, so thanks to all who have taken an interest. I'm at the stage where I am considering demolition quotes, but now have a bunch more questions.
The few demo quotes have stated they won't clear closer than 1 m to the fence line. Which I kinda understand. So should I clear all the garden beds and trees before the demo? I'm tempted to do this on one side as I'm toying with replacing the existing fence with a retaining wall.
I have decided that a wksp / shed is more important to me than the pool, so I am probs gunna get that filled. I've been quoted for this so all good. Now though, I'm thinking that as the pool has a 1.5 - 2 m pebble-crete deck surrounding the pool, I'm looking into removing ghe concrete decking slabs, but keeping the actual pool. The extra 2m will make all the difference and I'll have the house deck, seamlessly run to the pool.
Re: Knock Down Rebuild plus Investment - Beginning the Journ5
May 23, 2021 7:57 am
A bit of an update.
I'm moving too slow with this as I take my time to research and learn, but as always, more research leads to more questions!
We've decided to build an 'entry level' home on the least preferred block, then flip it to fund the forever home. I have worked the finance accordingly. The plan is to do as much of the site prep for both blocks/builds with the mortgage of this initial build.
As an aside, both the council and land titles office have replied stating I do not need a reconfigure application (subdivision) as the lots are titled separately (as I suspected)! Cheap win!
Unfortunately, I have neither the time (work) nor the real knowledge to project manage the relevant DA's for demolition so have been looking for demo companies that will do that for me.
I do have some general questions though, I hope the good folk here can answer:
The land has a gentle slope, about 700mm for each block, and although prob unnecessary for the builds, I want to have the dividing fence as a retaining wall, with the upper block filled a little, and lower cut slightly. I'd rather the whole block be 'level and flat' rather than just the pad. But when do I do this? Seems logical to do it after the demo, but is that something the builder can quote/factor in as part of the build?
I assume this will entail a site survey, so when is that best done?
As alluded before, I keen to use the first build and mortgage to 'get a head start' on the second. So I would like to split the sewers, mains etc for both, as well as prepare and lay the slab, with services for a shed on the second 'forever' block. Is this possible or must I wait and do it under the second 'forever' DA?
Re: Knock Down Rebuild plus Investment - Beginning the Journ6
May 30, 2021 7:16 pm
Talk to the builders, they usually have development divisions.
It’s important they know and include this from the start, as the way mine has set up the green power dome means I can’t use the current driveway as a common driveway (will have to have two, which was my original plan anyway so not fussed, but glad they are making me aware of these things).
They will clear the land to the level required so get them to set it out on the drawings. Mine did a site survey pre demolition, and will do one before starting to ensure no issues/surprises etc. Again, talk to builder before organising your own survey because mine did not accept a different surveyor (they want a “warranty” if the surveyor is in the wrong), and their cost was reasonable (compared to quotes I got).
Same thing with the demo, I went via builder and it cost me ~$4k more, and it was way slower than if I’d organised it myself, but I felt was worth it for the hassle, and if there’s any issues (they don’t sufficiently remove rubble), the builder will deal with them.
Re: Knock Down Rebuild plus Investment - Beginning the Journ7
May 30, 2021 7:24 pm
This might not apply to you if it’s technically two plots of land but I didn’t want the water set up for the “second” lot as I’d have to pay additional water/sewerage service charges.
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