Build Diary / KDR

Demolition Guide for Owner-Builders — Asbestos, Permits, and What It Really Costs

Alex Snaith · March 15, 2026 · 10 min read

Knocking down a house sounds simple. It is not. Our Lake Haven demolition was supposed to be the easy part — the starting gun, the exciting bit where the old house disappears and the dream starts. Instead it was two months of permits, asbestos surprises, disconnection delays, and a neighbour who tried to stop the whole thing.

Here is everything I learned about demolition as an owner-builder. If you are doing a knockdown rebuild, this will save you weeks of confusion and potentially thousands in unexpected costs.

Step 1: Get an Asbestos Report

This is non-negotiable. In Australia, any house built before 1990 must be tested for asbestos before demolition. Ours was built in the early 1980s. Ash and I assumed there might be a bit in the eaves or the bathroom. We were wrong.

The asbestos report came back positive for: eaves, bathroom wall linings, laundry floor tiles, the meter box backing, and (the expensive one) the roof sheeting. The roof alone added $8,000 to our demolition cost because it needed to be removed by a licensed asbestos removalist with full containment procedures — not just ripped off with the rest of the house.

Step 2: Council Approval for Demolition

You need a separate approval for demolition — it is not automatically included in your building approval. In NSW, you can get a Complying Development Certificate (CDC) for demolition if your property meets certain criteria (not heritage listed, not in a flood zone, not within a certain distance of a waterway).

We went the CDC route through a private certifier because council was quoting 6-8 weeks and the private certifier did it in 10 days. The cost difference was negligible ($800 council vs $1,100 private), and the time saved was worth far more.

Before lodging your demolition application, you will need:

• Asbestos report (mandatory)
• Survey plan showing the existing dwelling
• Photos of the existing house from all angles
• Proof of ownership (title deed)
• Demolition plan from the demolition contractor
• Waste management plan
• Neighbour notification (varies by council)

Step 3: Disconnect Services

Before the demolition contractor touches anything, you need to disconnect: electricity, gas, water, sewer, phone/internet, and stormwater (if connected to council system).

This was the part that blindsided us. Each utility has its own disconnection process, timeline, and cost. Some took 2 days. The electricity disconnection took 4 weeks because Ausgrid needed to schedule a crew to remove the overhead line to the house.

Step 4: Choose a Demolition Contractor

We got three quotes. They ranged from $18,000 to $32,000 for the same job. The cheapest contractor did not include asbestos removal (it was in the fine print). The most expensive included everything plus site levelling and compaction.

What to check in a demolition quote:

• Does it include asbestos removal? (If separate, get a separate quote)
• Does it include skip bins and waste disposal?
• Does it include site levelling and compaction?
• Does it include tree and stump removal?
• Is there a per-day rate or a fixed price?
• Do they have appropriate insurance (public liability, workers comp)?
• Are they licensed for demolition work in your state?

We went with the middle quote ($24,500) which included everything except the asbestos roof removal (that was a specialist contractor at $14,200). Total demolition cost: $38,700. Our original budget was $22,000. The asbestos nearly doubled it.

Step 5: The Neighbour Factor

Our next-door neighbour objected to the demolition CDC. They claimed our demolition would damage their fence (it would not — there was a 3-metre setback) and that the dust would affect their health. The private certifier reviewed their objection and approved the CDC anyway because the objections did not meet the threshold for refusal.

The neighbour then complained to council, who sent an inspector. The inspector confirmed everything was in order. Total delay: 2 weeks. Total stress: significant.

Step 6: Demo Day

The actual demolition took 3 days for our single-storey 3-bed. Day 1 was internal strip-out (removing anything recyclable — timber, metal, wiring). Day 2 was the main demolition with the excavator. Day 3 was cleanup, site levelling, and compaction.

Watching your house disappear in a day is surreal. Ash and I stood across the road with coffee and watched the excavator pull the roof off in one piece. It took about 45 minutes to reduce a house that had stood for 40 years to a pile of rubble.

The Real Cost Breakdown

Our original budget for demolition was $22,000. The final cost was $43,630 — nearly double. The asbestos was the biggest factor ($14,850 total including the report), followed by the tree removal which we had not even considered.