Alright guys a got one for ya.
Purchasing a seven unit site for 500k. Got all the development side of things sorted at the moment what I want some help/opinions on is this.
The block has a house and a pool on it already, the pool is fiberglass so we can get rid of that for free by giving it to a pool company. The house however is on stumps and can be removed and “re-planted” somewhere else. What do you think of me buying another cheap block and replanting the house there. No down time on building and i am essentially getting the house for free. If i get around $250 a week it should work out alright.
What do you think feasible and also does anyone know of anyone in Western Australia that does this type of thing?
Help is much appreciated
Cheers
LockymacHi Lockymac
This will not be a "free house"!
I take it you've talked to the local council?
They generally require a bond to make sure you will finish what you've started (think $20-30k deposited with them)
They also require these days that the finished moved building completely meets CURRENT building codes. Often this requires a new roof, even if the existing roof is perfectly sound.
And of course sewerage or septic, water pipes and electricals all have to up to current standards. And maybe the cost of police escort or cutting the house in half or removing the roof or all three to move it.
This is not necessarily a problem, but every time we have looked at doing it, a "cheap" job has after investigation not looked so hot. And BTW it can take MONTHS and MONTHS for a contractor to finish all of this so you can get that final inspection and your bond back..
So keep your eyes open and check the sums before you decide if it's as good as it looks. We have decided in the past to just sell the house for removal and let someone else have the headaches while we get on with what we are good at. But hey! Maybe this IS what you are good at!
Cheers
Mr Fair Go
I see your point. I only say free because were purchasing the land regardless. If i were to sell it any idea how to go about it and what is "fair" value for it?
Thanks again for your advice
Look in the Yellow pages for "House Removalists" or similar, ring some and get some offers. That will give you a starting price. Expect about $5-10k. (yes, that's all they will offer unless it is modern!)
Then put an add in your local paper "House for removal" and at least double whatever you were quoted by the pros.
BTW some councils accept bond guarantees, which preserves your cash. Ask them. You already have a "no" but you could get a "yes"Cheers
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