Hi all,
We are wondering if anyone out there has experience with relocating a home?We would like to know of any unexpected costs & hiccups you had to deal with, any council problems etc.
Is it necessary to get owner builders in every case?If so , how do you do more than 1 in 6 years.
With Thanks
L.W.Yes we sure have, you can read our story and view pictures at:
http://www.propertydivas.com.au/6Share/ReadStory.aspx?story=552ef318-f398-49f7-ac5e-0e26648bf387
Visit your local Council
I’d suggest that you make your first step a visit to your local Council to find out about local requirements and restrictions.Each Council around Australia has different procedures and varying fees, so it is imperative that you have the right information from Day 1. For example, it is vital that you know whether you are required to supply a “bond†to the Council, and if so, how much – it can be a substantial amount which you will need to add into your budget.
Later, when you have found your removal house, you will need to check with the Council that your proposals fit in with the overall town planning scheme.
Find your House and Contractor
Next, you will need to find your removal house and a suitable block of land. Removal houses can be found in your local paper, the “Trading Postâ€, “Yellow Pages†as well as online. Prices vary widely so consider your budget before you embark on your search. Some vendors are businesses that also provide the removal service, whereas others will be private individuals who will require you to arrange for a removal contractor to take the house away and so you will also need to find someone qualified to do this.Removal contractors will ask you to sign a contract. This should set out the terms and responsibilities of the removalist and state all inclusions, such as bonds, fees, delivery details and services provided. For example, some firms will deliver the house on blocks, whereas others will carry out stumping and some even renovate the house for you. We ALWAYS recommend that you seek legal advice in relation to any legal contract – especially as there is no “standard†contract for the industry – Buyer Beware!!
Choose your land
You’ll also need a sufficiently sized block of vacant land for your house, with no easements or covenants that restrict a removal house from being placed on the block.Get your Finance in place
Talk with your financier, as many lenders will not take security over a removal house until it is in position and has been stumped.THE PROCESS IN DETAIL
Inspections and plans
When the Council considers your application for a removal house they will visit both the site and the proposed house to ascertain if it will suit the situation. Consideration will be given to existing neighbouring homes and to the style, materials used, roof pitch and height of your proposed house. Neighbours may be granted permission to view your proposal and lodge objections if they wish, so this is why it is imperative that you research your area first.As with all building works you’ll need to obtain a soil test so that an Architect/Engineer can consider structural details and design plans for submission to the Council.
The plans will contain details including:
Existing floor plan and details of any alterations
Sub floor, beams, bracing and tie down details
Architectural elevations, location and orientation
Any other relevant informationLodgement of preliminary plans with the Council will attract fees that vary between States. An Officer from the Council will then prepare a report of recommendations of building work required, such as:
Level of renovation work required – usually no “patching†is permitted and rotten materials must be replaced
Maximum building height
If roof replacement is necessary, including insulation
Generally rewiring all electrical work
Replace/upgrading of plumbing
Installation of smoke alarms
Tie down, bracing and depth of footings
Determine the bond (Amount held by Council until all works are complete)
You may lodge a Building Application simultaneously with the Preliminary Application and again, fees vary depending on the size of the dwelling and number of plumbing fittings.Payment of Council Bond and other fees
Most Councils charge a bond. This is a sum of cash to be held by the Council until all works are completed to its satisfaction – usually within 12 months. The bond provides the Council with a “safety net†in the event that it needs to step in and take over an abandoned or unfinished job, or one which is not completed to its satisfaction. The bond is often a significant amount and this can put a huge drain on your cash flow. However, it is usually possible to ask for a partial refund as work progresses.Before the house can be moved, all bonds and fees must have been paid to Council and the appropriate authorities notified. The contractor will need to provide the Council with proof of current insurance and a building services insurance policy may also be required. Bonds also apply for escort fees and security bonds for roads.
Once the house is in place
Make sure your contract specifies who will be responsible in the event that damage occurs when the house is moved. After the house is moved, as with all renovations, you’ll need to have a team of tradespeople ready to start work. The sooner the house is finished, the sooner you can receive your bond back.A final word…
A removal house requires lots of careful research and planning, but the rewards are enormous. The satisfaction that you will gain from turning a dump into a shining diamond will give you immense pride, and co-ordinated correctly, a very healthy profit too.SUMMARY OF THE PROCESS
Visit council or town planner
Purchase vacant land
Find suitable house for removal
Engineer report and architect plans
Lodge Preliminary plans with council
Council assessor visits house and site
Pay bonds and fees to move house
Renovate and certified
Certificate of Occupancy
Bond refundedAmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi
Have not done this myself, however there is an informative article I have read on this subject.
The “Australian Property Investor” magazine, December 2005 featured a story on a lady who relocated a Queenslander from a Brisbane suburb to Macleay Island. A backcopy should be available on their website, http://www.apimagazine.com.au
Hope this helps.Regards
FrankFrankIerace
Hi Frank and Amanda,
Thank you so much for all that info.This is a great site and I think its fantastic that people like myself can learn from your experiences.
Gee amanda 4 littlies,crutches, huge reno,+ a job,well done it looksgreat in the pictures, love the detail.
Thanks heaps
LW.Hi L.W,
Glad you liked our new website and the story section, perhaps one day we’ll all be reading about your removal house story.
Regards,
Amanda
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Amanda,
Your relocation house came up a treat. Would you care to share the costs associated? Do you think the relocation of a house for profit in todays market is a way to go? Just interested in what your thoughts are.
Cheers
TammyHi Tammy,
Costs have certainly increased since 2003/04 however the result was:
Land
23139Removal House
45155Kitchen
4920Bathroom
3221Deck & carport
7726Electrical
3020Plumber
6507Building materials & landscaping
37399TOTAL
131087Net Sale proceeds
207787Pre tax Profit
$76700We really cut every corner we could and even recycled the kitchen but installed new tops and instead put in SS appliances.
We must have the bug as we intend doing another removal house next year, as we’ve just received DA approval to subdivide the back off one of our rentals. We couldn’t build a new home even if we wanted to due to the character listing over the land. We won’t be selling this one though and will keep it as another rental.AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Congratulations on that Amanda,
Thank you for sharing your numbers.
Cheers
TammyHi leahwat
I will only answer the last part of your thread as I have nothing to add to what AmandaBS has already told you with the process. One thing I will add is that a qualified removalist isn’t just someone who is a member of an association like the HIA or MBA they are licenced with the Department of Fair Trading in NSW and the Building Commision in Victoria. In our area only one of about 6 relocators has insurance to protect his clients so ask your removalist if he is licenced or check with a building inspector on the best contractors to do the job.We are builders in Victoria and NSW so while the reasoning behind the warranty may be similar it won’t be exactly the same so if you need further clarification call a building inspector.
When a builder constructs a dwelling or extension he has to provide the owners with warranty insurance to protect them against any defective work or materials in the job. This insurance in varying capacities lasts for 6.5 years (differs b/n States). When an owner/builder constructs a dwelling or extension (or in your case transports a dwelling which is still structural work) you only need to provide warranty insurance when you sell the home and only then for the amount of time left to serve out the 6.5 year warranty period. This protects the new owners for defective workmanship and materials that you may have engaged or provided.
The restriction on owner builders was brought in for a couple of reasons ,firstly to ensure that the building industry was protected as many people were repeatedly building homes for themselves and then selling them. Like builders, these people are carrying on a business enterprise and should have to comply with the same rules and regulations (probably moreso) that qualified builders have to comply with. Also the other reason was to protect the owner/builder themselves. Many of these people engaged ‘cheap’ contractors who often took advantage of the fact that they could provide concreting, bricklaying, carpentry and roofing without providing individual warranty to the owner. If the work was faulty then the owner had to fork out the dollars and not the insurance company if he couldn’t provide documentation that each structural trade should have provided to the owner/builder. Of course all these insurances add to the cost of a home and this is why many owner/builders tried to sidestep builders thinking that they would save some money. Many found that it wasn’t worth it in the end and obviously the Governments etc agreed. These laws have been put there to protect consumers. If you want to make some money in the meantime while waiting for your timeframe to lapse find some structurally sound ugly ducklings and tart them up a bit and sell them. Not as stressfull and a quicker turnaround. You probably would make more money too. Take it from one who knows!Julie Fisher
Daryl Fisher Homes[exhappy]
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