Considering a knockdown rebuild project but have some burning unanswered questions? This is the blog for you!
The benefits of knocking down and building new are clear – you and your family can live in a brand-new home; designed to suit your lifestyle; in your familiar and much-loved neighbourhood. Plus, Coral Homes can provide a fixed price guarantee so there is no need to worry about a budget blowout which is often associated with renovations.
There are however some additional requirements around knocking down your existing home, that are not part of the normal process of building a new home. So, we have put together the top 3 frequently asked questions in a blog especially for you!
How long does a knockdown and rebuild project take?
After Coral Homes has conducted a free site assessment for you and you have decided on your chosen home design, we will be able to indicate to you approximately how long your build will take. Also coming into the timing considering is your demolition partner and how long they need to knockdown your existing home.
Do I need to organise the demolition of my existing home?
The short answer is yes. However, we may be able to recommend a demolition partner for in some areas. As owner of the property, it is ultimately your responsibility, but your New Home Consultant will be able to guide you through this process and advise you of any trees that may also need to be removed to fit your new home on the block of land.
How do I finance a knockdown and rebuild project?
Unless you have a mountain of cash saved up, you will need to apply for a construction loan via a bank or mortgage lender. You usually need a deposit for a construction loan, just as you do for any other home loan. Many lenders will expect you to have a 20% deposit. Although, some may let you borrow up to 95% with lenders mortgage insurance (LMI). How a lender calculates your loan-to-value (LVR) ratio for a construction loan works a little differently to other mortgages. Instead of basing your LVR on your current home value, a lender is likely to assess it based on the lower of:
• The projected value of your new home once completed, or
• The value of your land plus the value of the building contract.
The good news is a lender will often let you use some of this property’s equity to finance your build.
Want to learn more? Head over to our dedicated knockdown and rebuild page to read more of our FAQ’s on the topic.
