Michael Holmes looks at the implications of building a new home on a previously developed site. An increasing number of self-build plots are what are known as ‘knock-downs’: occupied by an existing dwelling that is, for one reason or another, not worth restoring or extending and so lends itself to demolition and replacement. The existing house might be poorly designed or positioned, too small for the size and value of the land it stands on, or simply beyond economic repair or improvement — its fate sealed by the fact that a new dwelling benefits from 0% VAT whilst renovation and extension work is usually rated at 20%. Cost The cost of demolishing a house ranges from $9,000-$14,000 for a small 80-120m2 detached property, up to $20,000-$25,000 for a more substantial property of 200-250m2. But costs will be mitigated if there are materials with salvage value. A demolition contractor will list the value of any salvage items and offset this against the quote for demolition ...
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