Hi,
I was just wondering if it was possible to buy a block of land and than pay to have a relocatable home put onto the land. (I know there would be considerable costs for transportation/refitting electrical/plumbing etc) just curious if it could be a proftiable way of investing or if anyone has done it and would have an estimate on costs and issues related.
Thanks in Advance
Yes.
you have to get the relocatable house for fairly cheap/ nothing
under 20-30k
transportation depends on distance. There are a number of companies in different states that can give quotes.
but just to jack the house up onto the truck is about 10k
then it depends on kilometers travelled and sometimes difficulties and size of The house if escourts are required.
Good if you have a high value allotment and want to create instant cashflow. / wouldn't recommend it as much for a new subdivision.
Id imagine the electrical wiring and plumbing would be a major cost as well. Could be wrong but you'd have trouble financing it I'm sure.
Had an enquiry today from someone wanting to do exactly the same think but with a kit home.
Going to depend on a couple of things as most lenders don't like lending on removal homes until they are Council Approved.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I actually done this years ago (early 2000's) for a place I purchased in Esperance WA (Twilight Beach), suggest you check with the council, as this was not allowed in the area where I done it, however no harm as a friend had a large piece of land nearby which was a fantastic alternative.
Cheers, Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
It generally couldn't be financed (under housing loan) unless it become a non removalable home. Any wiff of it being able to be removed naturally worries lenders.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
We have just completed a project like this. Very profitable and will be doing it again.
We found a block of land in a regional NSW centre for very cheap (DOH area undergoing gentrification) – $45K. Found a great house which had been recently renovated and negotiated the price of that down to $7K. Moved the house for $43K. All up including connections and the work needed to make it livable again was around $11K. Factoring in council costs, draftsman, engineers etc we are all in for $112,000.
We financed the block and used the equity from another investment to finance the house move. It has taken 6 months all up but could definately shave time of this (lots of newb mistakes
).End figures are looking like:
Rent: $280 per week
Reval: Around $190-200K (won't know till next week)
Will be able to pull a fair amount out of this because the bank only sees the $36K loan against the block so will finance our next larger project.
Not bad for a first go!
Pitfalls – working the DA/CC certification so that you fit within council guidelines, finding an A team (which includes house mover, engineer, draftsman, plumber, electrician) – I found this tough because I was working in an area I didn't know, timing everything was tricky as well – I couldn't put the DA in until I had found the house I wanted so had to tell the owners of the house that they would have to wait through the DA process etc before the house could be moved.
Good work Jessica. You have basically doubled your money within a year and a 13% yield.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terryw, it really has been a great project if you have a head for stress.
Looking at doing it 6 more times in the very near future!
).You must be logged in to reply to this topic. If you don't have an account, you can register here.
