CASE STUDY – First-time relocatable house experience for an investor couple.
Newly-retired couple, Doug & Sue, are experienced savvy property investors who saw an opportunity to source a quality relocatable family home for the back section. They own a 607m2 sized property, which had a house located at the front.
Their objective was to increase their equity in a cost-effective way and receive a cashflow positive rental return for their future lifestyle needs.
After searching online for relocatable houses, Doug & Sue enquired about a three-bedroom listing with The Relocatable House Co. in December 2018.
Given Doug’s engineering background and attention to detail, he was very interested in learning more and sought plenty of information up-front about the process of house relocation.
Step 1: Information Gathering
The first step was downloading The Relocatable House Co’s. Definitive Guide to Buying a Relocatable House. Doug then discussed the process and next steps with The Relocatable House Co’s Sales Hub team, who then gave him access to supporting resources, and put Doug in touch with Brent Davies, Auckland Sales Consultant, for next steps.
Step 2: House Viewing
Brent then arranged a joint visit with Doug & Sue to visit the house for inspection.
Even though this was Doug & Sue’s first house relocation project, their experience with rental properties and the size of their section told them that this house was ideal for their needs, without a need to consider further properties.
Step 3: Due Diligence
Using The Relocatable House Co.’s Sale & Purchase agreement, a House Plus Relocation Package house purchase was the result, following a period of due diligence.
The period of due diligence included regular visits to the property that were made to ensure Doug & Sue had ticked all the necessary boxes to ensure a successful house relocation project. This included:
- A Site Audit Report completed by The Relocatable House Co. Design Team to ensure an optimised fit of the house onto their property. Doug & Sue were able to provide a survey and site plan to assist with this report.
- Support on budget feasibility for all additional building and renovation work to be done. Knowledge of and the appropriate removal of asbestos-containing materials (ACM) from the house.
Step 4: House Purchase
Doug and Sue had the support of Brent and the wider team at The Relocatable House Co. throughout the process.
The House Plus Relocation Package house purchase included:
- Filing the necessary Council Consents and reports for swift council sign off.
- Co-ordinating the removal of the ACM internal ceilings prior to the house relocation.
- Co-ordinating the painting of the exterior of the house.
- Providing the contact for a builder required post house relocation.
- Co-ordinating the actual house shift.
The Relocatable House Co. was able to provide the best platform for the sale of this house for both the seller and Doug & Sue as the buyers of this house.
The seller had initially contacted The Relocatable House Co. to get their house sold with as least disruption as possible. Choosing to sell their old house for relocation rather than choosing demolition resulted in saving tens of thousands of dollars for the seller.
Their outcome was to build a new family home on the site of the old house which required additional flexibility for the shift date to allow for them to secure finance for their new build.
This was a workable scenario for Doug & Sue and the shift date was set down for May/June 2019.
To ensure this scenario’s success, continued communication was key and Brent also assisted the seller to co-ordinate an asbestos report and disconnection of services prior to the house relocation.
The house relocation and work were officially completed by The Relocatable House Co. in June 2019. Doug even went for a ride-a-long for the actual move, as he was so interested in the overall process!
Brent is continuing to communicate with Doug & Sue to ensure they meet their renovation completion date ready for their expected first tenant in August 2019.
The total costs relating to this project remained under $250,000. The costs included:
- The purchase of the house and the house shift, including the Project Management of the shift.
- Council consents and subdivision costs
- Asbestos removal
- Connections to essential services – i.e., water, sewerage, electricity, broadband
- Additional foundation and tie-down requirements. The foundation requirements were obtained through the that Doug & Sue had completed during their due diligence stage.
- The upgrading of electrical, plumbing and insulation for tenant readiness.
- Repairs and renovations on the new site – e.g. paths, driveway, landscaping, fences, painting.
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- Investor finance summary outlining the new equity and yield
- Before and after image gallery of transformation