Hamish Firth specializes in exploring development opportunities for clients and approving plans to make them a reality, he was kind enough to share some thoughts.
Doing your numbers
When conducting the feasibility of a build, many home owners want to work out if the project makes financial sense(some don’t surprisingly). Understanding the opportunity cost is important. A common mistake is to include the purchase price of the current property as one of the main inputs. However the current value is a more relevant starting point for the costs. If you were to sell the current home – the current value would be realised, which you could use on another project(buying or building).
Squeezing it in?
Hamish also suggests exploring the possibility of squeezing a second or third dwelling onto the property, rather than demolishing the existing house. Often, people view old houses as a problem child, seeing them as an impediment to development. However sometimes the current house can be moved to another part of the site. Moving an existing house is a relatively straightforward process. The house is lifted off its old piles and transported to its new location. Piles are dug, and the house is positioned and secured.
Demolishing a house removes any opportunity to build on the existing foundation, and it also adds additional costs for clearing and debris removal. Hamish Firths site here https://mthobsonproperties.co.nz/
