should we build on coastal land?

One more question ;)
We have some land down on Vic's coast worth about 80k (we own).

If we build on it (eg cost about $110k) then we might be able to sell for about $200k so it doesn't seem worth it.

The land keeps increasing in value significantly so haven't sold yet.

Would anyone recommend building to rent in the meantime?
Am a little *scared* of building. We renovated our own place and that was enough *fun*! LOL

Any experiences shared very appreciated.
 
Do you know how much rent you would get if you built a house on it. If the rent would cover all of your outgoings or at least come close, may be worth building an holding if the land is still moving up.

BUNDY
 
I'm with Bundy.

You don't necessarily need to make profit on building the property, just break-even after refinancing.

The depreciation on the new property plus the rental you can command should make this property cashflow positive if not positively geared.

This is versus getting no income from a vacant block of land....

Best also to build when the building industry in the area is in a slump. Builders & materials are cheaper and you're likely to get a better-built building.

If you try to build when the area takes off (which would seem logical), building costs will be significantly higher & you're likely to make LESS money not more :)

Cheers,

Aceyducey
 
Coastal land. Land Clearing. Increased Industry. Increased Traffic. Greenhouse effect. Global warming. Sea level rises. Coastal Land Now Under Water.

Just being a pain ;) Cant keep the treehugger in me quiet sometimes...

TheBacon.
 
TheBacon,

What's wrong with land that's only above water at high tide or is a swamp anyway?

People made fortunes buying the everglades ;)

Cheers,

Aceyducey
 
Building on the Coast

Has anybody every built on the coast. I was looking at some land near the beach recently and spoke to a friend who is in the earthmoving business. He said there's alot more involved in building on sand and it can turn out to be quite an expensive exercise.

Anyone come across this?:)
 
I live in Perth.

All of Perth is sand.

You can build on sand.

However, builders who arent used to building on sand will get scared and charge extra. Its the same as building in areas with lots of clay. There are problems but they are not insurmountable (spelling?).

Its more a case of knowledge than extra costs really, so find a builder who knows how to build in that area.

Good Luck

TheBacon.
 
If my memory serves me correctly (and plz correct me if wrong), I believe sand is great to build on. Next to zero movement in the foundations although the slab/ footings may cost a little more. I don’t see why it should worry the builder much as the footing are designed by an engineer, all the builder needs to do is follow the plan. If he cant follow the plan perhaps he was the wrong builder in the first place?
 
If you own the land outright why build especially if your only going to break even that seems dumb to me. Vacant land sells at a premium I'd hold it for the future.
 
Building on sand

I moved a removal house to Beachmere near Bribie onto an elevated sand hill at the back of an acreage block. All the building companies I spoke to, and the eventual house remover, said sand was the best foundation you could get. The postholes were a bit of a problem to dig for the stumps, but other than that there seemed to be zero movement once the thing was in place. Whilst I would never do a removal house again, I would build on sand. Unless all the builders in those days were wrong in theie opinion.

BTW to get the removal house up the hill through the sand the removalist used a WW2 "blitz" truck chained to the prime mover and drove flat out up the hill. It was the scariest and most interesting property moment of my life as far as I recall :)

Enjoy the sand !
TryHard
 
Originally posted by mort the frog
If you own the land outright why build especially if your only going to break even that seems dumb to me. Vacant land sells at a premium I'd hold it for the future.

Mort, you don't get a greater premium for vacant land than for land with a property on it, and your market is smaller (only developers plus a few brave souls).

With a house on the land you get a cashflow from the property and land increases in value just the same as if vacant. If a developer sees an opportunity they'll happily knock the structure down or move it.

Mort, why sit on a debt when you can earn money from it AND still get the capital growth?

Cheers,

Aceyducey
 
Re: Building on sand

Originally posted by TryHard
Whilst I would never do a removal house again, I would build on sand.

Why not do a removal house TryHard ?
I have been toying with the idea for quite some time but would like the experience of someone who has done it. Was it just too much work ? Would building new be as cost effective ?
I was considering a nice colonial to move, you can pick them up at reasonable prices.
astroboy
 
Hi Astro

Possibly a removal could be good for the right handy person mate. Here's what happened to me :

1. Found a cute colonial at Wynnum - picked up for a 'steal" at $3K and took house remover with me who confirmed a nice easy 2-piece move at $17K additional delivered and stumped

2. During the move, the vast majority of internal wall sheeting collapsed - the removalist said "oh I didn't realise they had taken out all the internal VJ's - I thought they had pastered over them" - luckily he suggested this was mostly their fault and they would help fix

3. As I was moving in Caboolture Shire, they take a $30,000 bond (or did back then, and at the same time Brisbane City Council was only $10,000) which they keep until you have jumped through flaming hoops

4. As I wasn't too handy, the internal renovations budget blew out - some windows smashed, needed replacing, kitchen needed replacing anyway, as did bathroom, floors polished, internal paint etc etc.

5. As it was moved in 2 pieces and lets just say they weren't the most skilled craftsmen you have ever seen (one cut the flooring in the hosue with a chainsaw!) the way it joined back together was not exactly pristine !

In the end it looked ok. Nice little colonial on the hill with verandah overlooking the dam. The cost to build a decent lowset brick back then (that everyone seems to want, I didn't, admittedly) was around $70,000. When I added up the costs of removal and make good, and the lost interest on the $30,000 bond etc I spent around $70,000 doing the removal project. It was all the extra work and things like cost of new stairs etc. Its easy to blow a couple of grand per staircase etc.

Admittedly, we're talking very unskilled here and had to pay for everything.

If I could be conned into moving again it would be a SINGLE SHIFT small colonial with all the internal VJ's still there, original flooring etc. The removalist suggested they move a lot better, and there would be much less drama setting them up in the new place. Plus at least you have the real valuable stuff like the feel of timber, the VJ style etc.

I think many councils have followed suit with the bonds and strict conditions on removals. I still reckon for the average person the cost of a reasonable spec home (with better depreciation and more suited to tenants, and not anywhere near as much ongoing maintenance) would be about the same as the average removal. The priceleading "$x delivered and stumped on your land" neglects to mention the costs of make good, plumbing, council etc. so I can see why lots of people are still keen.

Only my point of view from my highly unskilled viewpoint ;). I am in the process of trying to put a spec home on a block of land. Only been going 2 weeks and already the building co. has managed to stuff up at least 3 things to do with the soil test and contour survey, and are now refusing to quote on building till we prepare the earthworks ourselves. Grrrrrr. So much for the hassle free method of leaving it all to someone else. Its hard work this property stuff eh ? So maybe I'm just a whinger !

Best wishes
TryHard
 
House relocation

Ben / Astro - guys just in case I am tainted, this was only my opinion from a not so savoury experience - there are probably some good news stories out there too.

They do a ton of them out in the Haigslea, Lowood area I think. This may be because the council is marginally less hard nosed ?
Maybe someone out that way can comment. You see some fantastic articles about those huge "4 or 5 shift" big places that they move to prestigious acreage areas, but I'd hate to think what they cost.

Out of interest, you can buy a removal house on the web ! http://www.dalbyremovalhomes.com.au

Anyone else with a removal story ?

:)
Still trying
 
Thanks for that info TryHard, gives me a few more things to consider that I hadn't thought of. BTW I have also heard that Caboolture council are not the easiest to deal with.

ab
 
Yes Queen Bee - I just finished building a large house on the beach in SA. It's in a very remote location and all by itself in the dunes which added to the challenge, but I found it very straightforward and financially worthwhile.

Sand is easy, septic drainage is easy because of porosity, and a simple pole home construction is easy too, but there are a few traps to watch for. For example, your footing design can't be complicated - my engineer devised an upside-down mushroom shape which could only be excavated with a special machine which lives in Adelaide. Also, rust is a number one issue on the coast along with wind speed. Therefore a timber frame with bluesheet cladding works well as long as you have adequate termite protection and you overdo the tie-downs.

But then, is there anything more wonderful than the roar of a wild storm going on all around you up on your windswept clifftop, while you snuggle up in front of an open fire with a hot chokky? You don't want to be thinking about well anchored you are.

Don't be frightened off by the idea of pole construction though. I really dislike the tacky boxes on stilts you see everywhere so I did a contra with an architect friend to design my house. I couldn't be more thrilled with the result. With a huge curved 4m corrugated iron roof, the house is made up of amazing though simple angles and is clad in bluesheet and corrugated iron. The decks are vast, are partially under the main roof so you can be out in the rain without getting wet or in the shade when it's 40 degrees, and they can be used no matter what the wind direction. There are no balustrades either because the decks are 900mm from the ground. The whole house has a great floating look and feel. I'm describing it here just so you can see you don't have to settle for pedestrian. The cost was moderate (appx $100K complete) because I supplied all the materials and just paid for labour. Easy to do - besides how often do you get to order a semi-trailer? That was fun.

As for capital growth - it's really happening! I just bought my fourth adjacent allotment this week - each one is 100 acres right on the beach. Up to now, each cost appx $50K, but this new one was $75K which I agonised over for several months before buying it privately. Big surprise a few weeks ago though - the block next to my new one was sold within 3 weeks for $150K with 3 bidders. But this is happening atm right round the country as people seek a connection with a special place of their own.

Hope this answers some of your main worries

Michele
 
On the beach

Hi Michele

I was pretty jealous hearing about your building experience, but if I read that right and you have 400 acres of beachfront, then jealousy doesn't begin to describe it ! ;)

Good on ya !
TryHard

PS any photos of your sensational house to share ?
 
Dear Astroboy,

House relocations are certainly a good way to make money and I am relocating a single shift duplex at the moment.

The key is to make sure you have done your own due diligence including having done a building inspection on the building BEFORE it is moved and also after it has been relocated onto the site and be prepared for the bonds that you will have to pay (But are refundable after you get the certificate of occupancy).

A couple of threads to read:

http://www.somersoft.com/forums/showthread.php?postid=41156#post41156

http://www.somersoft.com/forums/showthread.php?postid=31007#post31007

Cheers,

Sunstone.
 
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