Renovations and makeovers shunned in favour of the full rebuild

They were once a staple of reality TV shows but renovation projects have been getting less popular as families ditch plans to fix up their homes and opt for a different strategy instead.

Fiona and David Elsey, with sons Isaac and Liam, at their almost complete Lane Cove. Picture: Sam Ruttyn

Renovating may be a staple of TV reality shows but long-time homeowners are increasingly ditching the idea of restoring their houses and are instead bulldozing them and rebuilding.

The renovations were often abandoned after the homeowners realised too much work and money was required to bring their existing houses up to the standard they wanted, housing experts said.

Rebuilding from scratch was seen as more appealing because they could better customise their home and push the value of their properties considerably higher.

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The trend has reached the point where knockdown-rebuild projects now account for four out of five of the new detached houses getting built in Sydney, according to research by developer Metricon.

A recent auction on Holmesdale St in Marrickville attracted buyers keen to knock the home down. Picture: Tim Hunter

The group’s general manager Luke Fryer said most projects were concentrated in middle-ring suburbs dominated by older but not heritage protected housing.

This included the Canterbury-Bankstown area, upper north shore and pockets of the northern beaches and inner west.

Mr Fryer said a lot of homeowners in these areas wanted to avoid moving, but their lifestyle had outpaced their current home.

“We often hear that if they renovate there will still be elements of the home they don’t like even after spending lots of money,” he said.

20 Bay View Drive, Lavender Bay sold for $6.71 million to knockdown rebuilders.

Sydney building costs typically range from about $300,000 to $1.6 million, depending on the scale of the work involved, with the average new build costing about $550,000.

Simple cosmetic renovations are typically much cheaper, but adding extensions and doing a major overhaul of a home often costs upwards of $150,000.

Such overhauls can cost even more if there is significant damage such as foundation cracks requiring fixing.

Lane Cove West residents Fiona and David Elsey recently ran the numbers on what it would cost to improve their 1950s brick house and realised they were better off wrecking it and starting over.

“There was termite damage and lots of cracks. Too much needed to be replaced,” Mrs Elsey said.

“There were some other issues we wouldn’t be able to change with a renovation, the layout means my laundry room gets all the sunshine, there was asbestos. It was better to rebuild.”

The couple are now in the process of building a new double-storey house, which is costing them about $600,000, including council fees.

“If we wanted to get a house this size in the area we’d probably have to pay $3 million, which isn’t feasible for us,” Mrs Elsey said.

The Elsey family said building made more sense for them than renovating.

Auctioneer and director of Auction Services Rocky Bartolotto said knockdown-rebuild projects were also becoming more popular with home seekers.

Derelict houses on larger blocks often sold faster and at more competitive auctions than other older, but more intact homes that did not offer buyers a “blank canvas”, Mr Bartolotto said.

“Knock downs often appeal more,” he said. “Buyers can create what they want from the bottom up, whereas with a reno it can still come up well but it will continue to be an older exterior.”

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Earlier this month a weatherboard house on Holmesdale St in Marrickville presented as a knockdown-rebuild opportunity got a warm reception when it went under the hammer.

More than 20 buyers registered to bid — the average Sydney auction attracts two to three bidders — and the home sold for $1.6 million, $300,000 above the reserve.

Originally published as Renovations and makeovers shunned in favour of the full rebuild