I had a request from a client for a knock down rebuild in Wantirna today so I did a site visit and i was surprised with the amount of knock down rebuilds in the Wantirna area. Most of the homes in the court where my clients lives have already been had some form of a knock down rebuild solution or another. 

Some had 3 homes on the same block and some had had just a new single dwelling constructed at the rear of property. Most of the homes in the area were built in the 1970's and were well ready for a knock down rebuild or a good renovation to them and another built at the rear.

By building a new home at the rear of the block this will allow the owners to release some of the equity built up over the years in their land. The cost of the rear home including demolition would be around $250k and with a sale price of $630k would release $400k in equity. 

Well worth thinking about if you are looking at retirement.