- grumblepieParticipant@grumblepieJoin Date: 2013Post Count: 8
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 Advancewilko1Participant@wilko1Join Date: 2010Post Count: 510
you have to get the relocatable house for fairly cheap/ nothing
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.grumblepieParticipant@grumblepieJoin Date: 2013Post Count: 8
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.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
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.
Yours in FinanceRedwoodParticipant@redwoodJoin Date: 2013Post Count: 340
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, IvanTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
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.JessicaPParticipant@jessicapJoin Date: 2014Post Count: 5
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.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213