Knockdown Rebuild Checklist: What Every Melbourne Homeowner Should Know Before You Start
We all want to be living in our dream homes, perfectly designed for how our family actually lives, sitting on the same street we've called home for years. That's the magic of a knockdown rebuild: you get to stay put while completely transforming your living space.
If you're a Melbourne homeowner considering this option, you're probably wondering where on earth to start. We've walked countless families through this journey, and there's definitely a method to the madness. Let's break down everything you need to know before taking the plunge.
Why knockdown rebuilds make sense in Melbourne
So many Melbourne families are choosing this route for many reasons, most notably to avoid wasting money on stamp duty for a new build. That alone can save you tens of thousands of dollars.
Then there's the customisation factor. Instead of trying to squeeze your lifestyle into someone else's vision from the 1970s, you're creating a home that works for how you live today. Plus, you're building to modern energy efficiency standards, which means lower bills and a more comfortable home year-round.
Understanding what you're working with
Every knockdown rebuild starts with understanding your block. This is as in-depth as soil quality, drainage, slope, and access for construction vehicles. If you're in a bushfire zone, that brings its own set of rules to navigate.
Here's where things get interesting (and sometimes frustrating). Each council has its own personality when it comes to what you can and can't build. Heritage overlays, design and development overlays, and special building overlays all have something to say about your project.
The suburbs where people most want to stay put often have the most restrictive overlays. This is where having a builder who knows the local council scene inside and out becomes absolutely crucial.
The cost factor
This is where many people get caught off guard. You're looking at anywhere from $500,000 to well over $1 million for the full project, depending on size and finishes. But it's not just the build cost.
Demolition alone will cost $15,000 to $40,000, and you'll want to factor in temporary accommodation for 12-18 months while you're building. If you've got a mortgage on the existing place plus rent somewhere else, that adds up fast.
Don't forget about:
Permits and council fees (can be surprisingly hefty)
Utility disconnections and reconnections
Site preparation and engineering reports
The inevitable extras like landscaping and window furnishings
A good rule of thumb: Budget an extra 10-15% on top of everything for the unexpected.
Finding your builder
This is probably the most important decision you'll make. Your builder is your project manager, permit navigator, problem solver, and sometimes therapist, all rolled into one.
Look for someone with serious knockdown rebuild experience in Melbourne, ideally in your area. Check they're properly licensed with the Victorian Building Authority and have the right insurance coverage. Most importantly, find someone who communicates clearly and offers fixed pricing. Nobody wants nasty surprises halfway through.
The permit parade
Melbourne's permit process can feel like you're collecting Pokémon cards – gotta catch 'em all. You'll need a demolition permit first, which sounds straightforward but requires a Section 29A report if you're knocking down more than half the building or touching the street-facing facade.
Depending on your project and location, you might also need a planning permit before you can get your building permit. This is where things can slow down – planning permits can take 4-8 weeks, and you can't proceed without them. Luckily, quality builders will handle these headaches for you, so you won't have to spend too much time on the paperwork.
Demolition day
Once you've got all your permits sorted, it's demo time. This is actually the fun part for most people, as there's something satisfying about watching the old place come down.
Before the excavators roll in, though, there's prep work. If there's asbestos (and in older homes, there often is), it needs professional removal. All your utilities need to be properly disconnected (gas, power, water, sewer, etc). Give yourself plenty of notice for this, especially with power and gas.
Building your future
The actual building process follows a pretty standard timeline: slab, frame, roof, fit-out. Sounds simple, right? In reality, you're looking at 12-18 months from start to finish, and that's if everything goes smoothly.
Weather delays happen, especially in Melbourne. Council inspections sometimes take longer than expected. Occasionally, you'll hit unexpected site conditions that need sorting out. Supply chain hiccups can throw a spanner in the works, too.
The key is staying organised and responsive. When your builder asks for decisions or approvals, jump on it. Delays at your end can cascade through the whole project.
As you near completion, you'll do final inspections with your builder to make sure everything's exactly as it should be. Any issues get fixed before the handover, and then you get the keys to your brand-new home!
Choosing the right custom home builder in Western Melbourne
Planning thoroughly, budgeting realistically, and choosing the right builder to guide you through the process are all you need to worry about to ensure success. At JEM Homes, we've helped countless Melbourne families navigate this journey from start to finish. We handle the complex permit processes, manage the construction timeline, and keep you informed every step of the way.
Ready to explore what's possible on your block? Let's chat about turning your knockdown rebuild dreams into reality. After all, there's no place like home, especially when it's exactly the home you've always wanted.