Subdivision / House shift cost

[Nectar]

Hi

I’m wondering whether anyone has had experience:

1) Moving a house (forward or back) on a section to place it in a better location; or
2) Subdividing a large lot into two sections

And what a rough “ballpark” estimate of what each of these would cost on a flat section with easy access. I’m working my numbers up to see if one or both of these options would be viable or whether it would be better to remove the house altogether a build two new houses.

I know this is a tough question but any guidance would be appreciated!

Cheers
N

[Bobsyouruncle]

In Auckland subdivision will cost you 150K.

[chris_gee]

It depends rather on the value of the house versus the land. Not uncommonly the house value is low. Moving it might cost around 50k as a ballpark as all services have to be shifted. Then you might have a house worth say 100K really needing upgrading say another 100K giving a value of x. .
Alternatively demolishing it might be 25 -50K
You then end up with bareland valued at say 800 k + 150K plus holding costs for say 1-2 years, plus say a 15% margin to get a price to a builder who then adds the same again.
I don't think people are particularly rational about realising 60% or so is the cost of the land. In many cases it is more with an established property. I also think people are less inclined to build themselves partly for financial reasons and partly as the ultimate cost of a large house that matches the section cost is beyond them. I also suspect some builders sell at an apparent profit not realising that the replacement cost of the section now is higher. In other words they bought at 400 2 years ago sell at 600 but the replacement cost is 650.
Be aware too that it can all take a long time, and you may have a problem getting the trades.
There was a trend a few years ago to leave an old house albeit done up squeezed between two new ones reducing the value of all. Now the scorched earth approach seems more typical.
There are also tax issues depending how long you have owned it and if you build you are then classed as a developer/builder.

[Nick G]

Chat with a relocatable house company in most cases you would keep the dwelling.

[Pegasus]

We have done a few subdivisions and also relocated a house onto a site in Whangaparaoa. We used Craig walkers removals in Kumeu, give them a call as to the latest cost for moving the house, shouldn't be too high.
As far as subdivisions it can vary a lot depending on where your stormwater and other service connections are, if the land is deemed in the flood zone etc. Best idea is to phone a local surveyor who should look at your site on the council viewer and give you a good idea. They are the ones who will put the application into council etc and will know the rules for your area

[sidinz]

Pegasus - I was just told that getting a CoC for a relocatable these days involves making it meet modern building standards including double glazing (region dependent). Is that what you've found?

[Peter Griffin]

Any recent cost break downs on moving relocatables? There's a thread from the squirrel mortgage guy but it's a couple of years old.

P.G

[Nick G]

I looked at it in 'vegas and that seemed to be 50k for the house, transport and on piles 30k, 20k connections and council and 30-50k to renovate and do basic landscaping. The PM on that is extensive to say the least.

[Nick G]

You also need to do geo checks now, which adds cost to prove you can even do it.

[sidinz]

I looked at it in 'vegas

That's where I'd be doing it. Did you look into what would be required for a CoC?

[Peter Griffin]

if you have the section then move the house on the site, does anyone know if the bank would consider this an improvement/renovation? then lend over the current threshold?

[sidinz]

if you have the section then move the house on the site, does anyone know if the bank would consider this an improvement/renovation? then lend over the current threshold?

Most banks won't lend on them until the CoC is issued. So generally you're looking at alternative financing and then re-financing. The odd understanding manager may swing you a construction loan, but don't count on it.

[Nick G]

I was assuming the same however my broker has just told me he can likely get lending for a reno based on post reno valuation (registered) for some Wellington flats which is nice. I will be increasing rents by 40-50% tho and the valuer will have a consented set of working drawings to reference.

[Pegasus]

HI Sidinz,
The great thing about relocatables was always that you don't have to bring them up to todays standards, so a cost effective option. We did ours a couple years ago but I haven't heard that it has changed. If you call Craig Walkers Removals they will know for sure as are a big removal company. The costs all depend on the section so you can't really give a ballpark. What worked for me was to speak to everyone concerned incl surveyor, drainage guy, the right people at council, and put together my own budget for all the parts of the equation for my particular site.
Cheers
Jolene