Knock Down & Rebuild Investment
Transform Outdated Properties Into High-Performing Investments
Knock Down and Rebuild
A knock down rebuild investment is a powerful and effective approach in the Sydney property market.
By removing existing buildings and replacing them with desirable dwellings, you can take advantage of premium locations, attract quality tenants, and enjoy the benefits of impressive rental returns.
At Property Portfolio Solutions (PPS), we can help you find an underperforming block’s hidden value. From identifying promising properties to obtaining council approval — we take you through every step. Whether you’re seeking capital growth or rental yield, PPS ensures you’re on the right path to reach your ambitions.
Reimagine, Redevelop, Revitalise — the Knock Down Rebuild Process
Like all the best ideas, the knock down / rebuild home strategy is simple — demolish the current building(s) on a block of land, and then replace.
This allows you to take advantage of sites that are in high-demand locations, but are let down by the outdated, dilapidated, or undesirable buildings upon them. When you replace the existing property with a modern, attractive home(s) that meets tenant expectations — you’re on to a winning investment.
The Benefits You Gain From Knock Down Rebuild Packages:
Premium Locations
You can get a desirable address at a reasonable price — since your land’s market value is restricted due to the site’s existing suboptimal property.
Bespoke Design
Design your rebuild to meet the expectations and demands of modern tenants. This gives you the edge over competing properties in the area, and allows you to hold a prime property in a prime location.
Maximised Rental Returns
When your rebuild meets the demands and preferences of tenants — and is positioned in a premium area — you’re able to command optimised rent. This can provide you with welcome cash flow, or be utilised for future investments.
Capital Growth Potential
With a property that boasts the combined benefits of being in a high-demand location and with the features expected by tenants — you have bricks and mortar that stand the highest chance of significant capital growth as the years pass.
Is a Knock Down Rebuild Worth It?
Whether you’re a first-timer taking your initial steps in property investment, or a seasoned expert, there’s one constant truth — there’s more than one type of property investment available. But is a demolition/rebuild really worth it compared to other options?
The answer is a resounding YES! Here’s why following this route could seriously supercharge your investment potential:
Versatility
Your knock-down and rebuild can be tailored to meet your ambitions — and the demands of your target rental demographic. As long as you can obtain the necessary council approvals, your knockdown rebuild could be a duplex, granny flat, triplex, or multifamily property.
Satisfying Tenants
Whether your ideal tenants are families, professionals, or dual-income renters — you can make your property stand out from the rest. Modern open-plan layouts, energy efficiency, inbuilt appliances, data networks, and high-quality finishes — just some options that can attract premium tenants and push up your rental value.
Affordability
Finding a vacant block in a prime location that you can immediately build on is tough. Even if you’re lucky enough to find one, its high desirability is going to dramatically push up the sale price — meaning tighter margins for you. Finding an established property and demolishing and rebuilding stacks up better financially.
Local Amenities
Your knock-down/rebuild project can give you access to in-demand suburbs that already boast impressive amenities such as retail outlets, employment options, schools, and healthcare facilities — often supported by a strong transport infrastructure. These factors are desirable to tenants, and can amplify capital growth.
Maximising Returns and Capital Uplift
A contemporary, well-planned, and attractive property built in a premium location gives you the double wins of impressive rental yield and resale value. This brings you the short-term advantages of having sufficient cash flow to deal with property management expenses — and the long-term growth you need to meet your ultimate ambitions.
Potential for Favourable Tax Outcomes
When you demolish and rebuild a house, you may be able to claim for depreciation on your new build and its associated fittings. This could provide favourable tax outcomes that have a positive effect on your cash flow — useful for further investment or meeting the property’s monthly expenses.
Diversifying Your Portfolio
For seasoned investors, a knock-down/rebuild project can be a powerful way to diversify or balance your portfolio. As you have a blank slate to build what you want — assuming you can obtain approval — you can identify areas where your portfolio is underperforming and create a property to address shortfalls.
How Much Does a Knock Down Rebuild Cost?
All property investment projects require careful financial planning — and demolish/rebuild strategies are no different. Once you have a grasp on the knock down rebuild costs, you’re in a much stronger position to ensure you achieve your short and long-term goals.
It’s difficult to give a ballpark figure on how much it costs to knock down and rebuild a house, as every project is different and comes with its own challenges and expenses. However, here are the main costs to think about:
Land acquisition expense.
Legal fees.
Insurance.
Demolition costs.
Hazard removal, such as asbestos.
Site clearance.
Architect and plan design.
Council approval fees.
Construction materials.
Labour and tradies.
Premium finishes.
Utility connection.
Additions, such as granny flats.
Appliances, allowing tenants to immediately move in.
Contingency fund.
Landscaping and site finishing.
At PPS, our expert team will take you patiently through the whole process, ensuring accurate pricing for your project.
Our Top Five Tips for a Successful and Profitable Knock-Down/Rebuild Project
Evaluate Your Project’s Feasibility
Before you buy your land, consider factors such as zoning, local building regulations, heritage restrictions, block topography, flood likelihood, and soil quality. This ensures that your project will be viable and not held back by delays and expenses.
Choose High-Growth Locations
Buy your block in an area that shows positive signs for growth. Consider things like infrastructure, availability of public transport, nearness to schools, and proximity to high-value employers.
Focus Your Build on Your Ideal Tenants
Make sure your new property is built with your target market in mind. Want families? Go for large outdoor spaces and multiple bedrooms. Planning on attracting busy professionals? Choose quality finishes with low-maintenance requirements.
Engage Experienced Tradies and Professionals
Future-Proof Your Project
Consider the demands of the decades to come to ensure your build brings long-term returns. Think about energy efficiency, EV car chargers, versatile floorplans, and tech-ready cabling.
At PPS, we know the complexities and common issues of knock-down/rebuild projects. By your side throughout, we will take you through best practices — from feasibility to future-proofing — ensuring you’re creating a profitable investment.
Transforming Properties, Maximising Investments With PPS
A knock-down rebuild is a versatile, profit-maximising strategy to create long-term investment returns and growth — allowing you to achieve your financial goals. But, get it wrong, and it could become a stressful and costly nightmare.
At PPS, we specialise in guiding investors like you through profitable knock-down rebuild projects — ensuring rewarding and profitable outcomes.
Why Choose PPS To Demolish and Rebuild a Home:
Tailored strategy — ensuring your knock-down rebuild meets your investment goals.
Complete process — we can manage everything, from feasibility to demolition, construction to handover.
Ideal locations — helping you to find high-growth areas for maximum ROI.
Premium finishes — partnering with our network of trusted builders to deliver quality results within your budget and on time.
Stress-free project management — we handle all aspects of the rebuild, so you can focus on other matters.
Clear communication — no-nonsense advice without jargon, hidden fees, or unpleasant surprises.
History of success — we’ve helped countless investors like you turn their knock-down/rebuild vision into profitable realities.
Knockdown and Rebuild FAQs
What Are the Hidden Costs of a Knock Down Rebuild?
The hidden costs can include things such as demolition expenses, hazards (like asbestos) removal, site preparation, and unexpected delays. Partnering with property specialists PPS allows you to complete extensive due diligence and budgeting before starting your project.
What Is the Average Cost To Rebuild a House in Australia?
The average cost of building a house in Australia can range from $1000 to $4000 per square metre. The actual price depends on factors such as property location, design, material quality, and inclusions.
How Long Does It Take To Knock Down and Rebuild?
Typically, a knockdown rebuild takes about eight to 18 months, from beginning to end. This period includes planning, demolition, and construction. That said, delays are possible due to the time spent waiting for approval from the council, addressing unforeseen issues like hazardous waste, and waiting for construction materials to be delivered.
How Much To Demolish a House in Australia?
As a general guide, the average demolition costs in Sydney are currently:
- Up to 100 square metres – $12k – $20k
- From 100 to 200 square metres – $20k – $30k
- Above 200 square metres – $30k – $50k plus