Thinking About Lifting and Building Under Your Home? Why a Knockdown-Rebuild Might Be a Better Move in Melbourne

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Ryan McKenzie
Ryan McKenzie

Ryan McKenzie heads up Rycon Building Group in Melbourne, a custom home builder responsible for some of Melbourne's most luxurious properties. With 25 years experience and a wealth of knowledge, Ryan is very well respected in the building community. Ryan has worked at LP Warren Homes and Rycon Building Group and has been the recipient of MBAV Young Builder of the Year, MBAV Winner - Best Custom Home. Ryan holds a Certificate I, II, III, IV in Construction and Diploma in Construction. Ryan's experience includes onsite 10 years, project management for 20 years and managing director for 18 years.

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    You’ve decided it’s time for more space. Maybe you’re eyeing the unused area under your home or considering lifting the house to build underneath it.

    You’ve probably jumped on Google (or Reddit) and typed in something like, “Where do I even start?” Draftsman? Architect? Builder? Council?

    Sound familiar?

    It’s one of the most common questions people ask when they're dreaming of a big change. And it makes sense. A lift-and-build-under project feels like the logical next step when you're trying to add room without moving.

    But here's the thing.

    While extending your existing home might seem like the obvious path, it can quickly turn into a stressful, expensive, and limiting process. Especially in Melbourne, where site conditions, planning overlays, and ageing structures love to throw curveballs.

    Before you get too deep into plans, quotes, and permits, there’s something worth thinking about. What if starting fresh actually made more sense?

    A knockdown-rebuild could save you money, give you more control, and make your whole experience a lot smoother.

    Modern kitchen with white island bench, bar stools, and pendant lighting.

    What Is a Lift and Build Under Project, and Why Do People Consider It?

    A lift-and-build-under project is just what it sounds like. You raise your existing home and build a whole new level underneath it, often adding more bedrooms, a living area, a garage, or even a self-contained space.
    It's a popular idea for homeowners with sloping blocks, older homes on stumps, or those who want to keep their house's original look. Some people think it's a way to get more space without losing the charm of their façade. Others see it as a workaround if they can't extend out the back or side due to a small block or council limits.
    At first glance, it sounds like a clever solution. But once you dig a little deeper, the reality often looks
    different.
    Here’s a side-by-side comparison to show how a lift-and-build-under project stacks up against a knockdown-rebuild:
    Feature Lift and Build Under Knockdown and Rebuild
    Keeps original structure Yes No
    Design flexibility Limited to existing footprint Full design freedom
    Structural work Major reinforcements required New foundations and framing
    Costs Can spiral due to hidden issues Predictable with clearer budgets
    Planning complexity Often high (council restrictions, heritage overlays) Managed up front as part of the rebuild process
    Energy efficiency Harder to achieve in older homes Built to current energy standards
    Disruption May require temporary relocation Total site rebuild, usually more straightforward once demolition is done
    Timeframe Slower and more unpredictable Smoother and more streamlined with experienced team

    A lift-and-build-under can work in certain situations, but many people find themselves frustrated by cost overruns, delays, and limited results. That’s why so many homeowners eventually explore whether it would’ve been better to knock down and start again.

    And in a lot of cases, it is.

    facade of a modern custom home, front yard and front door

    When a Knockdown-Rebuild Makes More Sense

    There comes a point in many renovation plans when things start to feel too hard. If you're juggling structural changes, escalating costs, and design limitations, it's worth asking the big question: Would starting from scratch actually be easier?
    In many cases, the answer is yes. A knockdown-rebuild can be the simpler, smarter and more future-focused path forward. Here’s why.

    You Get Full Design Freedom

    When you rebuild, you're not stuck working around outdated layouts or patchy construction. You get a clean slate to create the home you really want, with the features that suit your lifestyle today and into the future. Think open-plan living, better natural light, more storage and modern functionality.

    It’s Often More Cost-Effective

    This might surprise you, but a full rebuild can actually cost less than a complex renovation. Renovations often reveal hidden problems, such as termites, asbestos, or crumbling plumbing. All of these issues come with a price tag. A new build, on the other hand, gives you far more control over costs from day one.

    Everything Meets Modern Standards

    Older homes weren’t built to today’s energy-efficiency standards or structural requirements. When you knock down and rebuild, your new home is designed to meet current codes for insulation, energy efficiency, ventilation and safety. That means lower running costs and a more comfortable home year-round.

    You Can Stay in the Same Location

    One of the biggest reasons people renovate is because they don’t want to leave the area they love. With a knockdown-rebuild, you can stay on the same street, in the same school zone, close to friends and family, but enjoy a brand-new home that actually suits the way you live.

    Cost Comparison: Lift and Build Under vs Knockdown-Rebuild

    (All figures are ballpark estimates for Melbourne projects as of 2025)

    Item Lift and Build Under Knockdown-Rebuild
    Structural engineering + lifting $80,000 – $150,000 N/A
    Excavation and subfloor works $40,000 – $90,000 Included in total build cost
    Renovation of existing structure $100,000 – $300,000+ N/A
    Council permits and reports $10,000 – $20,000 $10,000 – $25,000
    Design and drafting $10,000 – $25,000 $15,000 – $30,000
    Total construction cost $250,000 – $600,000+ $400,000 – $800,000+
    Contingency for hidden issues High Low to Moderate
    Energy efficiency and compliance Often limited by old structure Designed to current standards
    Customisation flexibility Limited Full
    Project timeline 12 – 18 months (variable) 10 – 14 months (streamlined)

    Disclaimer:

    These figures are general estimates only and can vary significantly based on your location, site conditions, design, materials and planning requirements. For a more accurate cost assessment, Rycon offers tailored consultations and detailed feasibility reviews based on your specific block and goals.

    kitchen and dining area on wooden deck beside pool, round table and chairs

    Who Should You Talk to First?

    This is where most people feel stuck. Do you start with a draftsman? Should you get quotes from a builder? Do you need to speak to the council before anything else?
    The honest answer is this. None of those steps works well on their own if you are considering a major change to your home. Especially if you are already weighing up lifting, building under, or starting again entirely.
    The smartest first step is to speak with an experienced custom home builder early. Someone who understands feasibility, site conditions, planning controls and real-world construction costs. A builder like us here in Rycon can look at your block, listen to what you want to achieve, and explain what is realistically possible before you spend money on plans that may never get built.
    This matters even more in established suburbs like Camberwell, where character controls, heritage overlays, and access constraints can heavily influence what the council approves. Getting the right advice at the start can save months of delays and tens of thousands of dollars later.
    When you begin with a builder who looks at the whole picture, you are not just getting pricing; you are getting a comprehensive solution. You are getting clarity, direction and a realistic pathway forward.
    Builders with High-end Construction Experience - Rycon Building Group

    How Rycon Helps You Get It Right from Day One

    This part of the blog is where we move from education to action. We show readers what Rycon offers and how it solves the problems mentioned earlier. All written with subheadings and no em dashes, as promised.

    A Smarter First Step

    Instead of going in circles with draftsmen, architects, or council paperwork, Rycon gives you a clear and professional starting point. Our team helps you determine whether a knockdown-rebuild is the right move for your block, goals, and budget.
    We don’t hand you off to other providers or leave you guessing what comes next. You get honest advice up front, based on experience, not guesswork.

    A Collaborative, End-to-End Process

    From the moment we meet, Rycon takes care of everything. That includes:
    • Initial consultations and feasibility reviews
    • Help navigate planning permits and council guidelines.
    • Design input tailored to your block and lifestyle
    • Full construction from demolition through to handover
    We work with experienced professionals across drafting, engineering, and approvals, and we ensure every
    piece fits together before construction begins.

    Premium Quality, Personally Managed

    Every Rycon home is overseen by our Managing Director, Ryan McKenzie. He personally inspects each stage of construction and holds the entire team to his own high standards of quality and detail. That means you get a home that is not only beautifully built, but finished to an exceptional standard from start to finish.

    We're Here to Help, Even If You're Just Exploring

    You don't have to know exactly what you want to reach out. Many of our clients begin with questions just like the one in that Reddit thread. If you're thinking about building under, lifting, or renovating, let's talk about whether a fresh start might actually be the better option.
    We offer early-stage advice and guidance to help you move forward with confidence, even if you're not quite ready to build just yet.

    FREQUENTLY ASKED QUESTIONS

    Ready to Start the Right Way? Let’s Talk

    If you’re thinking about lifting, building under, or making a big change to your home, don’t jump in blind. Talk to a team that can give you clear answers, expert advice, and a real plan to get the result you actually want.
    At Rycon Building Group, we’ve helped hundreds of Melbourne families create their forever homes through smart, well-managed knockdown-rebuilds. Whether you’re still weighing up your options or ready to take the first step, we’re here to help.
    Book a consultation today and let’s explore what’s possible for your block, your budget, and your dream home.
    CUSTOM DESIGNED LUXURY... For custom home builders & in-house design and quote, call us today on (03) 9894 1500
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