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  • grotto
    Freshie
    • Dec 2004
    • 63

    #1

    Move A House onto a section

    I've got some IP's with big sections (2 or 3 unit sites), and have been thinking about moving a small house or two on, and renting them out.

    On the face of it, it seems that it will cost a lot less than buying another IP, and the rental income will be the same as buying another.

    I was not intending to sud divide or cross lease, just add a dwelling (or two).

    It won't affect the rental income from the existing house(s)

    The properties are in areas which are moving up (Mt Wellington, Auckland), and I'm thinking that in 5-10 years, it will be worth building an expensive house(s) on the sites, and moving the small ones off.

    I know that moving a house always costs a lot more than you think, but have seen houses for $10-15k, and can get them moved for under $15K. I know services etc will be expensive, but I can't see how it will cost more than $120K all up for 1 house, and you can't buy anything for under $250K in the same area.

    Anyone got any thoughts on this? Should I just sit on the land and buy another IP?
  • AustinWong
    Forum Junkie
    • Mar 2004
    • 475

    #2
    If the sum's stack up sure why not.

    Just be sure you get a reputable company to do it.

    Keith Hay homes are brand new and relocatale too, but I have good and bad about them. Generally of cheap construction i hear, but others say no probs.

    I think that it depends which branch the houses are from as to the quality of workmanship.

    My real worry would be what kind of structural/unseen damage is caused by stresses to the building while being moved.

    I don't believe that most houses are designed to be carted around.
    How do you eat an Elephant?
    One Bite at a Time!! (Source: Spaceman)

    Comment

    • hawkeye
      Addicted
      • May 2004
      • 744

      #3
      Hi Guys,

      We've been thinking about moving a house onto a property we own in Christchurch as a minor dwelling. We have a 1550m section with a 1905 house in three flats. We are waiting for the right character villa to become available.

      There are some great success stories in Martinborough. There are two double storied villas by the school that were moved from Oriental Parade in Wellington and they are just awesome. There are probably another 30 around the town that have been/are being beautified and used as holiday homes or accommodation businesses. It is great because they add to the feel of the town.

      I'm with Austin, you've got to find the right house, do the due diligence and get a reputable, experienced firm to do the move.

      n

      Comment

      • MiniMogul
        Opinionated
        • Nov 2003
        • 142

        #4
        I was looking into that too, but basically I also found out that by using kitsets, I can build brand new, really awesome, customised re floor plan, size, cladding etc, units for 70k each give or take a 20 contingency, (I am doing two, one on it's own would be more expensive) which will value at 100-120k each, so for the sake of saving a bit on relocating, which would still only end up with a second hand house, whereas rentals on a new property will be higher, I have decided to build new.

        They will still be CF+ve on building costs of 80k each worst case, and you can't buy CF+ve in this area any more, as it's a cap gains area.

        but in your case, as you are Auckland, there *are* a lot of what seem like perfectly good houses in Auckland at the various yards as well as just around the city still on site. It's a lot easier to consider Auckland to Auckland relocation than to relocate to where my section is. So one less drawback to your situation then to mine.

        However in my travels of looking into relocations, I found an excellent book which you can get by mail order by dropping an email to the author Hans Doevendans, at
        lowlandslavender AT clear DOT net DOT nz

        Cost 33.45 mailed to you.
        I just recieved the book today, haven't read it yet, but it looks great. It's a proper 1cm thick A5 size approx paperback book and about 135 pages.

        Comment

        • Scooby
          Freshie
          • Jan 2005
          • 10

          #5
          Hi MiniMogul

          but basically I also found out that by using kitsets, I can build brand new, really awesome, customised re floor plan, size, cladding etc, units for 70k each give or take a 20 contingency
          What company are you purchasing the Kitsets through?

          Comment

          • grotto
            Freshie
            • Dec 2004
            • 63

            #6
            Let me know if the book is good

            I'd be interested to know how you rate the book.

            I looked into buying a house from a yard, but they are quite expensive. A friend sold his to an Auckland removal company a few years back, and got $20K. I saw it on the same companies web site for $55K (including delivery). I know that having that size house moved only cost between $10K & $15K, so there seems to be a lot of margin in it.

            I'm a bit dubious about the lower cost new houses, not sure how long they'll last. I know that weatherboard & iron roof is higher maintenance, but they seem to last very well, but I'll investigate going down the new house route.

            Thanks for all the comments!

            Comment

            • MiniMogul
              Opinionated
              • Nov 2003
              • 142

              #7
              guaranteed for 50 years, how much longer do you need!
              That is, the roofing and cladding materials (and you can choose what sort you want) are guaranteed.

              Can't disclose trade secrets for now.
              Besides, I haven't tried this company out yet.

              My tips so far:
              get three quotes, so you have something to compare it to
              Get some testimonials from other clients
              get some photos of previous projects
              make sure all things are either included in the price or costed out so you can compare apples with apples - I was trying to compare quotes from one company who included everything, with a company that didn't
              Tip - companies that include everything seemingly mark up everything!
              get a registered master builder to build
              use quality brand name materials and fittings

              Comment

              • MiniMogul
                Opinionated
                • Nov 2003
                • 142

                #8
                re: "I know that having that size house moved only cost between $10K & $15K, so there seems to be a lot of margin in it. "

                Don't forget they have to buy the house (20k) and move it twice - once off the site and on to the yard, and once on to the new site. So they only added 5k to that to make the 55. Plus they have the holding costs of storing the house, such as insurance, rates on their site, and then marketing the deal so someone can hear about it to buy it for 55k.
                ten percent margin? I could forgive that.

                i think you can save, by buying a house for removal, and then moving it only once to your site.

                Comment

                • MiniMogul
                  Opinionated
                  • Nov 2003
                  • 142

                  #9
                  Han's book - a review!

                  OK, Hans Doevendans' book

                  you can get by mail order by dropping an email to the author Hans Doevendans, at
                  lowlandslavender AT clear DOT net DOT nz


                  is awesome. Stayed up until stupid o'clock reading it cover to cover. He says at the end of the book, this will either make you more keen to do a relocation, or kill the idea completely. With me, it did the latter.

                  Why?
                  OK, your dream-house might need to be cut into several bits for the move.
                  the more bits, the more expense, both at the moving stage and at the putting back together stage. if your house is in good condition when you buy it and you want to just pick it up and drop it on the new site, expecting it to be in the exact same condition, the reality is that it will be totally trashed. If the carpets are good and you want to keep them, you will still have to lift them up and re-lay them, otherwise they will be so trashed with mud etc that they will be unusable. Things like fire-places and bricked bits will have to be dismantled and re-bricked at the other end. There will be gaping holes where for example your laundry concrete steps were at the old site, and you will have to re-build them at the new site. basically, there is as much re-building, renovating and repairing of the house on the new site just to get it even close to the condition it was in on the old site.

                  Hans approached it in a DIY fashion, quoting (i.e. in his costs breakdown, which appeared still quite current) - 1000 for paint (materials only) where if you got tradies to do it it would be 5000. Yes, if you live in it and do the work yourself, it may be cost-effective, but otherwise, I reckon, forget it.

                  What I really liked about the book was that a lot of the planning involved is similar to a development, so I learned loads in that respect. I also learned that if you are deciding to do a relocation, try and pick a one-piece move with a flattish roof, and no brick or fireplaces, within the dimensions given, for your best shot at having the least drama at the other end and a cost -effective result.

                  Also that your neighbours will hate you because the project looks so ugly for weeks while you're doing it. Then you have to take care of the old site where the house was, too..

                  very very interesting book. I would suggest reading it if you are contemplating moving a house just to get a complete picture of the exhausting run down of everything that is involved.

                  cheers-
                  Mini

                  Comment

                  • grotto
                    Freshie
                    • Dec 2004
                    • 63

                    #10
                    Thanks Mini

                    I'll order a copy of the book a.s.a. Hopefully this will help me make the decision.

                    Also, after reading your response regarding the mark up by house movers, I guess I was being a bit hard on them.

                    Did the prices you quoted for kit set houses in clude putting them together, or did you do that yourself?

                    Comment

                    • MiniMogul
                      Opinionated
                      • Nov 2003
                      • 142

                      #11
                      Grotto,

                      OK re kitset houses, my one is just the supplier and I will organise my own builder. I picked one sort of ad hoc, and while doing the initial investigations with this company, I found loads of others very much in the same ballpark price-wise. It came down to - for me, when I made my choice - which was the most flexible company to customising the plan and the materials, and who seemed to want the business the most and had the most 'can do' approach - quality and price between a few firms seemed much of a muchness. yes, they all pretty much use hardiplank/gib/range of roofing or cladding options/ melteca/formica/ blah blah, yeah, brick costs more, etc etc. the difference between one company and the next seems to be in the ...er... 'architecture' - and even then, I was comparing apples to apples, which was - they're all just small, plain boxes, basically. maybe with a verandah and garage, if you're lucky!

                      Kieran's mini houses that he does are a lot more 'fancy' in looks than the ones I am doing. But mine are also significantly larger than the mini house. Yet on the face of it, if you are thinking of doing it, definitely check out Kieran's ones. I am saying this just as a total punter, I don't know the guy. but one of the things I do 'know' about him is that he is a respectable person, so there's a big tick for the integrity of his business (which is a hard thing to check out, really!)

                      Yes there are a lot of kitset house people that 'supply and build' for a fixed price.

                      from my research it seemed that the more they do, the more fixed the price, the more margin is on it. But can you be bothered to find that out, or is it easier to just say ' yep, go build my house.'

                      Also i won't really know if I am right about my costs, until I have completed the whole project. But from my calculations it is more than worth taking that punt.

                      An enormous list here:


                      and more here

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