The Knock Down Rebuild Process: A Step by Step Guide for Homeowners

The knock down rebuild process is the series of steps used to demolish an existing house and construct a brand new home on the same land. It typically runs through seven stages: site assessment, design, quoting and finance, approvals, demolition, construction and handover. Most projects take 12 to 18 months from first meeting to moving in, with the build itself usually lasting 6 to 12 months.

You keep your address, your neighbours and your children’s schools, while gaining a home designed for the way you live today. To see what this looks like in practice, look at the knock down rebuild page explains the approach in more detail.

Step 1: Site Assessment and Feasibility

Every project starts with the land, not the house. A builder or surveyor checks block size, slope, soil type, easements, sewer and stormwater locations, trees and street access for machinery. In Australia, you should also review your block’s zoning and any heritage or tree protection rules, as these shape what you can build.

This stage tells you whether a rebuild is realistic and flags site costs early, such as retaining walls, rock excavation or deep footings.

Step 2: Design Your New Home

With the site constraints known, you can choose a design that suits the block’s orientation, size and setbacks. Some homeowners adapt an existing plan, while others work with an architect for a fully custom built home. Browsing home designs and walking through a display home helps you judge room sizes, ceiling heights and finishes in real life.

Think about north facing living areas, energy efficiency and how your needs may change over the next 10 to 20 years.

Step 3: Quote, Contract and Finance

Once the design is settled, you receive a detailed quote covering the build, inclusions, demolition and site works. Read it closely and ask what is excluded, since landscaping, driveways, fencing and connection fees are often listed separately.

Most people fund a rebuild with a construction loan, which releases money in progress payments at key stages. Speak with your lender early so your approval lines up with the contract.

Step 4: Approvals and Permits

Before anything comes down, your project needs the right approvals. In the ACT, this usually means:

• Building approval from a licensed private certifier, covering both demolition and the new build
• Development approval if your design does not meet the exempt or code track rules for your zone
• A hazardous materials survey, including asbestos, which is essential for most homes built before 1990
• Demolition notification to WorkSafe ACT where required, such as homes that contained loose fill asbestos

Approval times vary, so build a buffer into your plans. Our development and building approval guide explains the difference between each approval and when you need it.

Step 5: Disconnection and Demolition

Electricity, gas, water, sewer and telecommunications must be safely disconnected or capped. Any asbestos is removed by a licensed removalist and a clearance certificate is issued. The house is then demolished, materials are recycled where possible and the block is cleared and levelled.

This is also when you move into temporary accommodation, so arrange a lease that covers the full build plus a margin.

Step 6: Construction

The build generally follows these stages, each tied to a progress payment:

1. Site preparation and slab or footings
2. Frame, including roof trusses
3. Lock up, with roof, windows and external doors in place
4. Fixing, covering plasterboard, cabinetry, tiling and internal doors
5. Practical completion, with final fit off and cleaning

Regular site visits and clear communication with your builder help you track progress and decide on variations before they become costly.

Step 7: Final Inspection and Handover

Before handover, walk through the home with your builder to note any defects. Many owners also book an independent building inspector at this point. Once the certifier issues the certificate of occupancy, you receive the keys and your new home is ready to live in.

The build price is only part of the budget. Key cost drivers include:

• Demolition and asbestos removal, which rise for older or larger homes
• Site costs, such as excavation, rock, retaining walls and drainage
• Design and size, including storeys, roof form and room count
• Inclusions and finishes, from benchtops to flooring
• Approval and connection fees, plus surveys and certifier costs
• Temporary rent and moving costs during the build

On the positive side, staying on your own land avoids stamp duty and agent fees, which can offset a large share of these extras.

Do I need approval to knock down my house in Canberra?

Yes. Demolition in the ACT needs building approval through a licensed private certifier, along with a hazardous materials survey. Some designs also need development approval.

Do I pay stamp duty on a knock down rebuild?

No, because you are not buying new land. This is one of the main financial benefits compared with selling and buying elsewhere.

What is the first step in the knock down rebuild process?

A site assessment. It confirms whether your block suits a rebuild and reveals site costs before you spend money on design.

The knock down rebuild process can feel like a big undertaking, but it becomes manageable when you break it into clear stages. Start with a thorough site assessment, settle your design and budget before approvals, plan your temporary living arrangements early and stay involved during construction. Do this, and you can enjoy a brand new home without leaving the community you love.

Thinking about a knock down rebuild in Canberra? Our team is happy to talk through your block and ideas. Get in touch with Abode Constructions to book an initial chat