Knockdown rebuild Perth

It is a construction loan over a block you already own. The lender values the land as if vacant, then values the property as if the new house is complete, and sizes the facility against both. Money is released in stages as the new house goes up, with interest on the drawn balance.

Demolition sits outside most fixed price building contracts, so it is not automatically funded. It can often be built into the overall facility, but only if the finance is structured for it from the start. Raise it in the first conversation rather than after the contract is signed.

Usually yes, and on most rebuilds it is what makes the project possible. Lenders assess the equity against a current valuation of the land as vacant, alongside your serviceability. How much of it can be used depends on the lender's policy, subject to approval.

It has to be dealt with as part of the project rather than left running beside it, because the security is being demolished. In practice the existing facility is restructured or replaced by the construction loan. We handle both halves in the same application.

Somewhere else, for the length of the build. Rent and any remaining loan repayments run at the same time, and repayments climb with each drawdown. That overlap is the cost most people underestimate, so we put a number on it before the project starts.

Neither is cheaper as a rule, and anyone offering you a rule of thumb is guessing. It depends on the condition of the house, the work you want done and what a builder quotes for each path. Get both costed, then we will tell you how each one funds.

Asbestos removal is licensed work and sits outside most building contracts, so it is quoted and paid for separately. Have the house assessed before you set a budget rather than after demolition is booked. It is one of the costs a rebuild budget most often misses.