Great Reasons To Relocate
Dave Wilson reveals four excellent reasons to relocate rather than demolish and how you can go about it.
31 May 2018
At The Relocatable House Co we believe that more families living under their own roof creates better family environments, better communities and better futures. Yet in the midst of a housing shortage, too many perfectly liveable houses are demolished and end up in our ever-growing landfills. All too often demolition is the first (and often believed to be the only) method of making way for new developments – but relocating results in far more direct and indirect benefits for everyone.
Whether you’re looking to get on the investment ladder for the first time, adding to your investment portfolio or wanting to develop a site to maximise equity and yield, here are some of the reasons that more investors are considering relocation:
Value In Your Land
If you look at your property’s Government Valuation, it is often the land value that has increased the most over time whilst the dwelling value has not. Depending on how long you’ve owned the property, paying off the mortgage whilst the land value increases, it could be that your house is sitting on a valuable piece of dirt that has significant equity in it. Relocating the old house to make way for additional dwellings in a desired neighbourhood just might realise the full potential return value in that land.
Do you have a large site where the need for extensive gardens, the pool and backyard cricket have gone? Is it just a labour of love for you and the lawnmower whilst the old house sits uneconomically in the middle of the site? Similar to unlocking the land’s value as above, relocating the current dwelling onsite to make way for additional houses could result in the perfect solution to create investment space whilst retaining the existing house.
‘Knocking down a perfectly good house could hit you in the back pocket to the tune of $25,000 or more’
Put More Into Your New-Build Budget
To unlock your land’s potential, knock down and rebuild (KDR) is a common option. But of course it comes with the cost of demolition and removal of the debris before you can clear the ideal building platform for your new-build dream home. Knocking down a perfectly good house could hit you in the back pocket to the tune of $25,000 or more – especially if there is asbestos involved. By considering the relocate and rebuild option, you can potentially reverse the demolition costs, giving you more money in the development budget, either to add value or save money.
Affordability And Speed
Are you keen to get up and running quickly and at an affordable entry cost? At today’s building rates, it is difficult to build any dwelling for under $2,500 per square metre, and construction delays mean many builders are booked well in advance. Relocating an existing house means you’ve only got the length of time required for relocating, connection to services, and any remedial work. You could have a dwelling ready to let for market rates at a fraction of the new-build price. Add some of your own “sweat equity” and the returns will be even better.
Planning, Education And Intelligence
As the saying goes, prior planning prevents poor performance. We recommend that you get all the information you need up front to avoid any costly surprises and delays as your relocation project progresses. All too often, a shortcut taken at the front end results in additional cost and time at the critical stages. Ask us about our Site Audit Report service. One of our qualified architectural designers can provide you with in-depth analysis of your site including council requirements and extensive site-specific information that will avoid any unwanted surprises, delays or cost blowouts down the track. You’ll be ready to make great decisions about what you can do with your valuable land.
At TRHCo we pride ourselves on the fact that we are a professional services firm in the relocation and removal industry. As a relocation specialist, we can help you achieve your dreams of becoming a property investor, creating equity, sub-dividing your land and creating future income. Land research, project feasibility and project management are all part of our expertise, enabling us to help you save money on demolition and bring you a step closer to your dreams.