• Demo Build – Old but New!

Demo Builds: The Process, Pros & Cons and Why It May Be Your Best Move

By New Home Matchmaker | April 2025

In the ever-evolving real estate market of Western Australia, finding a home that perfectly fits your needs and desires can often seem like a daunting task. The search for the ideal location, coupled with the constraints of existing homes and designs, can leave you feeling stuck between settling for something that doesn’t quite meet your standards or waiting for the perfect home to come onto the market. However, there’s another option that might just be the best of both worlds: a demo build.

What is a Demo Build?

A demo build refers to the process of purchasing an existing older home, often in an established and desirable location, with the sole intention of demolishing it and replacing it with a brand-new house. This approach allows buyers to retain the best of both worlds: the charm and community of an established neighbourhood, paired with the convenience and luxury of a brand-new home.

In Western Australia, the popularity of demo builds is growing, particularly in premium locations with great amenities. These are areas where people want to live—the neighbourhoods they already know and love. By demolishing an old home and rebuilding, you get to keep the same neighbours, the same local amenities, and the same neighbourhood feel but with the added benefit of a modern, energy-efficient home tailored to your needs.

Why Consider a Demo Build?

The Benefits of Premium Locations with Great Amenities

One of the biggest draws of demo builds is the ability to stay in a premium location while upgrading your home. Many of WA’s most desirable suburbs are established areas with great infrastructure, schools, parks, and local amenities. If you’re already in a location that feels like home—perhaps you’ve built a strong network of friends, have kids in nearby schools, or simply love the area—why leave it behind? Demo builds let you retain the community and lifestyle you love while enjoying a brand-new home that suits your needs.

In a market where land in prime locations can be limited, a demo build offers an excellent opportunity to own a brand-new home without sacrificing location. You can remain in your favourite neighbourhood or enjoy a more spacious property where previously only older homes existed.

Buying an Older Home with the Sole Intention of Demolishing It

The process begins with purchasing an older home on a traditional-size lot. These homes may have outdated designs or layouts but are typically in established, sought-after areas. With a demo build, you have the flexibility to create the home of your dreams, from the ground up, without compromising on location.

The Demolition Process

The demolition process is a key aspect of demo builds, and understanding it is crucial. Once you purchase the property, the first step is obtaining the necessary permits and approvals for demolition. This can vary depending on the local council’s requirements, the age of the property, and other factors. In some cases, heritage properties may have specific restrictions, but this is something your New Home Concierge can assist with, ensuring that all approvals are in place before proceeding.

The New Home Concierge plays a significant role in minimising risks and delays during the demolition process. They’ll work with you to ensure that all due diligence is completed, including checking zoning regulations, demolition permits, and potential environmental concerns. They can also help identify any hidden costs associated with demolition, so you know exactly what to expect.

Potential Risks and Challenges

While demo builds offer great benefits, there are potential risks to consider. For example, costs for demolition can vary widely, and if the home contains hazardous materials such as asbestos, additional removal fees may apply. These risks can be mitigated with careful planning, expert advice, and professional contractors.

This is where your New Home Concierge comes in. They’ll ensure that you’ve selected the right contractor, the right permits are in place, and the process is managed to minimise delays and unexpected costs. Having a guide to navigate the complexities of the demolition and rebuild process ensures that your project remains on track.

Turning Old Homes into New Opportunities

Another popular option in the demo build market is the opportunity to buy older homes on traditional-size lots, demolish them, and then either build a single home or even two new homes on the same lot. This approach allows you to make use of underutilised land, maximising the potential of the site.

In WA, the trend of subdividing traditional-size lots has become increasingly common. Many buyers opt to demolish the existing house, build a new one, and subdivide the land to create a second property at the rear of the lot. This second property can be:

  • Sold: A great option for investors looking to make a profit.
  • Rented: Generating a steady stream of passive income.
  • Airbnb: The popularity of short-term rental platforms like Airbnb means you can turn the second property into a holiday rental, earning a higher return on investment compared to traditional renting.

This strategy offers significant financial rewards, and for buyers in established suburbs, it can be an excellent way to maximise the value of the property. The key is to ensure that subdivision and development plans meet local council requirements, which your New Home Concierge can help with.

Why is a Demo Build the Best Move for You?

Customisation and Personalisation

One of the greatest advantages of a demo build is the ability to customise your new home. From layout to finishes, you have the freedom to choose exactly what you want. Unlike buying an existing home, where you may have to compromise on some aspects, demo builds give you the chance to create a home that perfectly suits your lifestyle and taste.

This customisation applies to every part of the home—from choosing eco-friendly features to designing the perfect kitchen. The opportunity to design energy-efficient features—such as high-performance insulation, smart thermostats, and efficient lighting systems—ensures that you’re building a home for the future.

Energy-efficient homes not only reduce your electricity bills, but they also help reduce your carbon footprint. With the cost of utilities on the rise, making sure that your new home is built with modern energy-saving features is an investment that will pay off in the long run.

Financial Benefits

From an investment standpoint, demo builds offer an excellent return on investment. Whether you choose to build a single home or subdivide the lot and build two, there are ample opportunities to increase the value of the property. Even if you opt for a single new home, the value of a brand-new, energy-efficient home in an established area will almost always exceed the value of an older home.

For investors, the option to subdivide and sell or rent a second property makes demo builds even more appealing. Whether it’s generating rental income or flipping the property for a profit, the financial upside of a demo build can be significant.

Peace of Mind with Expert Guidance

One of the most significant benefits of working with a New Home Concierge is the peace of mind that comes with expert guidance throughout the entire process. From navigating the demolition process to designing your dream home, the New Home Concierge ensures that every step is handled with care and precision. They help reduce risks, mitigate potential issues, and help you stay on track financially and logistically.

By having an expert on your side, you’ll be able to approach your demo build with confidence, knowing that you have all the resources and support you need to make informed decisions.

Conclusion: Why Choose a Demo Build?

A demo build is an excellent way to enjoy the best of both worlds—having a brand-new home in an established, well-loved location. Whether you’re looking to stay in your current neighbourhood, maximise the potential of an old property, or make a sound investment decision, demo builds offer significant advantages that shouldn’t be overlooked.

With the support of a New Home Concierge, the demolition and rebuild process becomes a lot more straightforward, helping you navigate potential challenges while providing expert advice on every step of the way. Whether you’re looking for customisation, investment opportunities, or simply a fresh start, demo builds offer an exciting way to create a home that perfectly suits your needs and lifestyle.

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