I’ll start with Townhouse developments..

In this scenario, it’s all about the build date. So if you’ve had a long settlement or an option contract, and you have all the plans and permits in place to start building as soon as settlement happens, then you need to begin the demolition process before settlement even occurs. That way, you can have cleared the site and be ready to build as soon as possible after settlement.

If, however, you’re going to settle on the house and still have to get plans and permits, then most of the time, it’s better to leave the house in place. You can potentially earn some rent on it while you get all the official stuff sorted, which is always better than earning nothing. Plus, once it’s cleared, you will need to put up temporary fencing, which can start to add up the cost if it’s in place for an extended period of time. 

For a subdivision strategy, where you’re going to sell vacant lots, you will need to clear the house sooner rather than later. If someone is turning up on-site intending to buy a vacant block of land, then that’s precisely what they need to see.

The dust blows off can be upsetting for the neighbours. Water runoff can be a problem, or even water runoff can be a problem or even water runoff that leaves a slick of mud over pavements and roads. And, of course, weed growth. So once the house is gone, make sure you monitor the site to try and minimise disruptions as much as you can. The last thing you need is annoyed neighbours sticking their oar in with objections to your plan or calling the Council to complain about your lot.

Now let’s move on to the actual process itself…

First up, you need to choose who’s going to do the demolition. In some cases, it might be your builder who makes this choice based on your contract, but it might also be you. State laws may also require input from a licensed Builder in the demolition process, so be sure to precisely understand the rules you need to comply with. The Geelong Council may require you to apply for both a demolition consent and a building permit if you plan to demolish:

• More than 50% of the entire building; or
• Any part of a wall that faces the street

Some companies specialise in demolition, so you should shop around to get multiple quotes. Some of the elements that a demolition company will consider when putting together a quote include:

• is there any asbestos on-site requiring specialised removal
• What type of materials are involved – bricks are a lot heavier than timber, so dumping costs are likely to be higher
• Proximity to dumping locations – prices can vary enormously between different dumping sites

To keep in mind, too, is the option of recycling elements of the existing house. People often think that’s only worth doing for a house with lots of character features, stripping out original traditional windows and selling them on eBay, for example.

You’d be surprised just how many parts of a house can be removed for recycling – everything from roofing to floorboards to the shed out in the back.

Some demolition companies incorporate recycling facilities into their processes, talking all the matter from the site back to their premises and running it through various machines to extract useable elements.

So don’t just shop around on price – think about recycling. It’s not only good for the environment, but the less material left to go to the dump, the quicker the demolition and the cheaper it is for you, making it worthwhile. Just be sure extra days up to a couple of additional weeks onto a demolition.

Next up, you’re going to need Building Approval to demolish.

Building approval for demolishing is generally done through a Certifier, but again, check local requirements and speak with your demolition company, who can usually organise this for you.

Once you have approval, it’s time to organise the removal of services such as:

• Electricity
• Gas
• Water
• Sewer
• Telstra/NBN

Generally, electricity and gas involve approaching a retailer and requesting the abolishment. It’s important to be clear about this – you need to abolish the service, NOT just disconnect it. Otherwise, they’ll just turn off the meter, rather than removing the service from the premises. Dealing with the retailer rather than the supplier adds an extra layer of possible conditions, so it’s worth mentioning many times that you’re demolishing the house, just to be sure.

Also, suppose you want to start building as soon as possible after settlement. In that case, you may need to request abolishment before settlement, requiring the current vendor and/ or Tenant’s cooperation. Often the simplest way to achieve this is to have a conversation with the retailer, then get the current Owner on the line to confirm that they’re okay with what you’re asking.

DIAL BEFORE DIG. The service will provide information about the underground services in and around your property for us to check in relation to the demolition of any building thereon. The asset owners respond by providing advice on the location of any underground services and information on how to work safely and carefully whilst excavating in the vicinity of the underground plant.

With water and sewer, you need a plumber actually to cap the services. Capping involves disconnecting them and sealing the entry point with a concrete cap to seal off the service completely. The plumber will also need to certify it’s been done and take photos.

Telstra or NBN cables are generally removed by the demolition crew or Builder, as usually all that’s required to disconnect the cable from the house and roll it up back to the pit near the road.

For all of these, be VERY clear on the likely waiting period needed for things to happen. Often it’s 20 to 30 days required period for the abolishment, for example, so don’t think you’re going to ring the retailer one day and have everything sorted by the next day. Therefore, timely planning is crucial to ensure no unnecessary downtime for the next steps of your development.

Once you have completed all of the above steps and the block has been cleared, then supply the required certificates and photos of the vacant block to your certifier.  The certifier will then confirm with Council that the block is vacant.

And then you can get on with selling lots or building your development.

A milestone moment to celebrate!

DEMOLITION PROCEDURES/CHECKLIST

Disclaimer:

Email: yasir@geelongpropertyconsulting.com