Transportable home finance

What is a removal home?

A removal home is a 2nd hand home that can be moved to a new site. They are often known as relocatable homes, removal homes, houses for removal or 2nd hand homes.

Some of the houses that are moved are previous transportable homes (houses that were built in a factory) that are detached from their stumps and moved to a new location. However the vast majority of removal homes are normal site built homes that can be cut into sections and moved. Older Queenslanders are the most common type of homes that are relocated.

How do they move a house?

Most removal homes were previously on land in a major city that has been DA approved for a new building or development. The previous owner has to do something with the current house and chooses to sell it instead of demolishing. If a buyer is found straight away then it can be moved directly to the new site, if not then it may be transported to a yard for sale at a later date.

Specialist house removalists, also known as removal home companies, use large hydraulic trailers to lift a house from its stumps and move it to a new location. If the house is too wide for the roads then it may be cut into sections and moved by two or more trucks. The roof may also need to be lowered to enable the truck to pass below low bridges.

When the house sections arrive at their new site they are placed onto stumps, reconnected with the other sections of the house and then connected to utilities. Many people choose to renovate their new home or build additions such as a garage or veranda before moving in.

Click here for a series of pictures of a real life example of a house being removed and restumped on another site.

Where in Australia are removal homes being used?

Houses are being moved to new sites all over Australia. It is possible in all states and is especially common in Queensland with colonial workers cottages and old Queenslander homes due to their low supply and unique architecture.

A Queenslander is an architectural style originated in Queensland back in the 1840's. You can find Queenslanders throughout Queensland and in the northern part of New South Wales. Queenslanders are identifiable by their large double doors and verandas.

Owing to the change in taste and style, the production of Queenslanders started diminishing prior to World War II. Since then many have been demolished. Nowadays, many people buy removal Queenslander homes for their unique style and in the process help to preserve Australia's heritage.

NSW, VIC, SA, WA and TAS have fewer specialist removal companies so many house relocations are carried out by transportable home companies using the trailers used to deliver their factory built homes.

Why should I purchase a removal home?

There are many benefits in buying a removal home:

• Costs - just like everything else that you can buy second hand, you will save money! You can expect to get 25% to 50% off the price of building the same kind of dwelling.
• Environmental - of course you help to save our environment by recycling. Imagine the quantity of building materials that are dumped when a house is demolished. It makes far more sense to reuse old homes, especially if they are still in a good condition!
• Speed - it is much faster to buy something pre-built then to build something from scratch.
• Quality - some older houses are higher in quality because they were built by master craftsmen with skills and construction methods that are either lost or no long use today due to higher labour costs. The materials used to build the house may have deteriorated so always obtain a building inspection.
• Character - older houses have unique features and are made from quality materials that are often unavailable when building a new home.

One of our customers has written a blog with his reasons for choosing a removal home instead of building a kit or project home. If you are serious about moving a house then we strongly recommend that you read his story from start to finish!

Where can I buy removal homes?

In Australia there are many qualified builders and companies who specialise in buying and selling removal homes. Builders who also sell removal homes will often include the house delivery & stumping in the package. They may also be able to recommend tradesman that you can hire to connect utilities to your new home.

Drake Homes is a company based in South East QLD which has been buying and selling removal homes for over 30 years. They have their own display village (aka holding yard) where you can go to shop for a home.

Qld Colonial Houses, Wright Bros and Dalby Removal Homes are a few of the other companies based in QLD. They provide house lifting, delivery and house re-stumping services. Graham House Removals is a family owned business in NSW who also offers all removal associated services.

Some transportable home builders can move homes for you even though this is not their main business. Please visit our Links section for a full list of builders and removal home companies for all states.

Costs involved in buying a removal home

Your budget will need to take into consideration the cost of the removal house that you are looking at, council application fees, council bond (if applicable), insurance, the cost of moving the house, site connections and renovations.

The price of a removal house is usually determined by its condition and the difficulty with which it can be moved. Older buildings may be cheaper except those that are of historical value or with a unique design that cannot be replicated. Some houses are in such a poor condition that they are given away for free and others are sold for over $150,000. The majority of houses are purchased for between $50,000 and $100,000.

You should hire a registered builder, building inspector or engineer to inspect the property that you wish to buy and relocate for your own peace of mind. No warranty is usually given as with any second hand goods. The cost of a building inspection is usually $100 - $400.

Your local council may ask for a completion bond which is refundable on completion of your project. This is to ensure that the council approved plans are adhered to and that all work is completed. In some cases we recommend people borrow the council bond as part of your loan and in other cases a bank guarantee may be suitable. It is best to check with your council or the removal home company that you are working with to find out the cost of the bond. The bond may range from around $5,000 to $30,000.

Transportation costs depend on the distance that the removal home needs to be transported. Keep in mind that the most direct route may not be available due to low clearances, trees and bridges that cannot be passed by the trucks. The removal home company will charge you for cutting up the house, transporting the sections and connecting them again your site. In some cases transportation costs & restumping costs are included in the cost of the house, in others they are in addition and could be up to $30,000.

You can save money by having the house moved directly from its current location to your block of land. If the house has to be moved twice because you arent ready to receive it yet then it may cost you up to $10,000 more than you would otherwise spend.

Renovation costs vary greatly depending on the condition of the house you are purchasing and how much work you wish to be done. Although renovating straight away is preferable, you may be able to delay your renovations if your budget can't handle them immediately. Our rule of thumb is that you should budget to spend 10% to 15% more than what you expect, just in case you change your plans or have some unexpected expenses.

How long will it take to have the house on site?

Most houses are on site and complete within a month. Most of this time is for the preparation work and renovations, the actual move usually only takes a day or two. This is much faster than a site built home which often isn't complete in 6 months!

The main delays with removal homes are with council and finance. It is important to allow up to 2 months for council (possibly longer), and 6 weeks for us to arrange your loan with a bank. If need be the loan can be arranged much faster however it is best to be conservative as the cheapest lenders also tend to be the busiest. We recommend that you talk to us to sort out your removal home loan prior to finding a house or land to buy so you can act quickly when a good house is available.

Investors and developers that are buying removal homes often reduce their delays by applying for their funding and council approval at the same time as buying the land. This means that by the time the land settles they are ready to go.

Applying for a removal home loan

Banks normally refuse to release funds prior to the house being on its new site, connected to utilities and council issuing a certificate of occupancy. Unfortunately the removal company and person selling the house need to be paid in part or in full prior to the house being moved!

We are the only mortgage broker in Australia that specialises in obtaining removal home finance from major bank and non-bank lenders. We can quickly tell you if you are eligible for a mortgage and also which lender will give you the best interest rate, fees and features for your removal home finance.

If you are in a good asset position then read about our competitive and flexible equity loans which allow you to release equity from your land or other properties at a greatly reduced cost.

If you are a first home buyer or you have no deposit then the guarantor loan is perfect for you. A friend or family member can guarantee your loan using their property as additional security. When construction is complete you may be able to remove the guarantee depending on the value of your new house. The guarantor loan is simple, cheap and can allow you to buy a removal home without a deposit.

If you have no equity or you don't have support from a friend or family member who can guarantee your loan, then it is not possible for you to get a loan at this stage.

However if you are in any doubts, please do not hesitate to contact us, we are here to help find you a removal home bank loan!

We want your feedback!

Is there anything else that you think we should add to this page? Unfortunately there is very little information on the internet about removal homes. Please email us or enquire online if you have any unanswered questions that you would like to see addressed on this website.

Where to from here?

• Take a look at our Frequently Asked Questions (FAQ).
• See if you meet our Lender Guidelines.
• Read about our popular equity loans or guarantor loans.
• Send us your full details to get an obligation free quote.
• Download our Transportable Home Finance brochure.