Building Inspection

I really wasn't sure how the building inspection would go, knowing that most of the house is more than 50 years old. The news was mostly very good. Quick run down of report:

• Structurally sound, has been restumped onto concrete stumps. Floor has slight undulation, the bloke thought that might be because the stumps were not exactly level when re-done. There are a couple of doors that are not square as a result.
• Roof has original concrete tiles, they have been re-sealed in recent years. Roof space is clear and has a good covering of insulation.
• Also relatively new colourbond guttering, needs clean out but in good condition.
• Fairly new hot water system.
• Ensuite bathroom has a leak around the shower. Immediate maintenance needed to seal around shower base where it meets the tiles. Longer term need to pull out shower and assess water damage to floor.
• No leaks of water in kitchen, good water pressure.
• Electricals have been upgraded, new switch, has circuit breaker and safety switch.
• Back deck handrailing needs replacing, there are a couple of holes in weatherboards (cut out) that need filling, otherwise the boards are in good shape. Broken tiles in entrance.

The thing he said at the end is that we're buying it in "as is" condition which means the vendor is not trying to hide anything or tart it up. What you see is what you get. With a good clean up and bits of maintenance here and there it will be good. More renos later on will make it lovely (not his words). Great outcome really, I was prepared to take advantage of the cooling off period to pull out of the deal if there were major structural issues with the house - that would have ended at 5pm today. Much relieved.

Amazing Grace

We bought the house in Nelson Rd on Friday. There were two other offers, we increased our price and now it's ours! Or it will be after we attend to our finance and the building inspection. As soon as we had signed on the dotted line I started to have doubts - what have we got ourselves into, will we be able to manage the necessary improvements and preferred changes, is it too old, is the extension too ugly etc etc etc etc. I think there's a term for it, something like mortgagee's cold feet or something.

Claire and I spent today at Tarsha and Peter's strawbale house build. What they have accomplished as complete novices is nothing short of miraculous, except that there has not been divine intervention - it's been their combined commitment, passions and willingness that is inspirational. It's not complete yet but it's well on the way. What I took from today (apart from some aches and sore hands) is that really, if they can do that, we can manage some relatively minor renovations and landscaping.

So here's my list of things I'd like to do to our new house, in relative priority from high to low.

• Fence the whole block. Yet to research materials.


• Investigate need for cooling/heating in the house, including insulation options.


• Replace floor in kitchen/dining and laundry with recycled boards and polish them.


• Line ceiling in lounge room to be rid of the 1970's exposed beams, insulating at the same time.


• Repaint entire interior of house.


• Replace window coverings through whole house.


• Landscape and redesign the outdoor spaces, porch/deck, paths and plant drought-tolerant, bird attracting garden.


• Renovate the bathrooms, one at a time!


• Repaint exterior of house.


• Possibly knock out wall to WIR in master bedroom to make room bigger, build BIR along that wall and remodel bathroom putting door to bathroom nearer to bedroom door.

I had thought that writing down that list would help, but actually it's just made me feel overwhelmed! Think I'll stop now and go back to watching DIY videos on utube, they make it look really easy!

decisions

Called the agent yesterday and offered $363k. Went in to the office and he proceeded to tell me there would probably be 2 more offers by the end of the day. So today I expect to get another call asking for our best, walk-away offer. The settlement period we proposed was 60 days.

It's horrible being in this limbo and trying to work out what we think it's worth to us. And that incorporates the cost of the work that needs to be done as well as our budget. So while our buying power is significantly higher than $363k we don't want to overspend. However as the agent said (I know it's in his interest to say it) if you put in offers based on the work you think the house needs you'll never have a house to do anything to!

Amazingly, the agent who Mum used to work for remembered her! Without prompting he remembered the years that she worked there (1969-71), that she was from the country - he had a funny story about her and he remembered her big sunglasses. He sends his regards Mum!

Nelson Street

We inspected Nelson St last night, quite like it, a bit disappointed that the 1970's brought so many poor extensions including this one. There are still a number of lovely 1950's touches, some original windows, the fireplace and cornices/cupboards/built in shelves. And there is plenty of room, a good functioning kitchen, 2 toilets (very important!).

Anyway I just have to call the council and clarify what is meant by the "owners corporation" which is included in the s32 between no 20 and the house which is on the subdivided part, facing into Acacia Crt. There is a grate over a storm water drain in the driveway which is what the owners corporation seems to cover.

There are currently tenants living in the house, their lease does not end until December. This means that we may not be able to move in until then. However the agent said what often happens in these circumstances is that as soon as the tenants find something they like they will move and the new landlord could waive the get-out-of-lease-early fee.

Then the question is what should we offer? And what about the terms? The agent talked a lot last night, there are no other offers at this point and he implied the following:

• a buyer could purchase this house for $365k if there was no competition.


• the vendor would prefer a short settlement (no surprises there)


• it would be a good idea to make the sale before the weekend as the buyer would cut out further competition which may emerge at the OFI (also good for agent of course)

My feeling, having an idea of what properties are selling for that this place would be a very good buy at $365k. And it could easily sell for $390k or even more. So I'm not sure if it would be wise to offer much less than $365k, subject to building inspection.

hhhmm

Well I was kind of in despair last week. Spoke to the agent about the block in Blackburn Sth, he said that there's alot of interest in the block, still waiting for the title and he will then call all interested parties. He implied that the block could sell for more than it's advertised price of $329k and I went into a tunnel, having doubts about whether we'll ever be able to do this house buying thing. Part of it is not knowing the costs and time frame of moving a house onto the land. Talking to Tarsh I started to worry about our ability to pay the rent and mortgage repayments on the land while we waited for the house to be ready to move into. We would need to borrow extra to cover those costs but without knowing exactly how long it would take. Bottom line is I'm not sure we have the funds and financial flexibility to manage a relocation if we buy land for $300,000+. It might be possible but need more info. Couldn't go to see the relocator on Friday as Claire was sick and needed to be at home.

In the mean time I saw this house in Ringwood. It's in a great location near the station and buses that go to Mitcham Primary School and Blackburn High School (one of the prime choices of secondary schools for the kids). It has 3 bedrooms, 2 bathrooms and what looks like plenty of living space. Downside is it is on a small block (450 sqm) and I'm not sure if this block might feel like too little land. The upside is it's on a corner of a court which would mean safe cycling and playing in the street for the kids. We will go and see it on Tuesday afternoon. An amazing coincidence is that this is the street that my parents lived in when they were first married and moved to Melbourne. Just a few houses from number 20. Also, all those years ago, 1969-1970, my Mum worked for the agent who is still operating and is selling this house!

Next step

I lost my house hunting momentum for a while there. Partly it's been that I've been waiting for the title to be completed on this block in Blackburn South. What was a big old corner block is now 2 blocks, each with street frontage. Like what we were thinking of doing ourselves. The subdivision is complete and we are now waiting for the title to come through and then we will put in an offer.




This house will fit on the block inside the building envelope we think,
it is a lovely old place (you have to imagine it with an iron/colourbond roof), requiring lots of cosmetic work and an updated kitchen/bathroom eventually. But it has a great floor plan, plenty of room, and is especially good for a north facing block. I have lots of questions to go to the council and house removers with, will make an appointment to see them this week.

Questions for Council:

• What are the car parking requirements for a block/house this size?
• The building envelope abuts the boundary on one side of the block, are there requirements for how far the house must be from the fence?
• Is there a council bond required while works are underway?
  
  

Questions for House Relocator:

• Will this house fit within the building envelope?
• Within what time frame must this house be moved? Do the relocators move houses to a storage lot if they don't have a buyer at time of removal? Are there any implications for the condition of the house if they are stored for a time?
• Is it necessary to get soil testing done prior to purchase of the land?
• Are any chimneys in the house moved with it? Or must they be rebuilt.
• Is a site scrape necessary before house is relocated? At whose cost?
• More details re costs and time frames for project completion.

others' experience and description of process

Detailed description of process of relocating from someone who has done it in NSW:

INITIAL STEPS

Visit your local Council

We suggest that you make your first step a visit to your local Council to find out about local requirements and restrictions.

Each Council around Australia has different procedures and varying fees, so it is imperative that you have the right information from Day 1. For example, it is vital that you know whether you are required to supply a bondto the Council, and if so, how much it can be a substantial amount which you will need to add into your budget.

Later, when you have found your removal house, you will need to check with the Council that your proposals fit in with the overall town planning scheme. (See also Town Planners).

Find your House and ContractorNext, you will need to find your removal house and a suitable block of land. Removal houses can be found in your local paper, the Trading Post, Yellow Pages as well as online. Prices vary widely so consider your budget before you embark on your search.

Some vendors are businesses that also provide the removal service, whereas others will be private individuals who will require you to arrange for a removal contractor to take the house away and so you will also need to find someone qualified to do this.

Removal contractors will ask you to sign a contract. This should set out the terms and responsibilities of the removalist and state all inclusions, such as bonds, fees, delivery details and services provided. For example, some firms will deliver the house on blocks, whereas others will carry out stumping and some even renovate the house for you. We ALWAYS recommend that you seek legal advice in relation to any legal contract especially as there is no standard contract for the industry - Buyer Beware!!

Choose your land. You'll also need a sufficiently sized block of vacant land for your house, with no easements or covenants that restrict a removal house from being placed on the block.

Get your Finance in place.

Talk with your financier, as many lenders will not take security over a removal house until it is in position and has been stumped.

THE PROCESS IN DETAIL

Inspections and plans.

When the Council considers your application for a removal house they will visit both the site and the proposed house to ascertain if it will suit the situation. Consideration will be given to existing neighbouring homes and to the style, materials used, roof pitch and height of your proposed house. Neighbours may be granted permission to view your proposal and lodge objections if they wish, so this is why it is imperative that you research your area first.

As with all building works you'll need to obtain a soil test so that an Architect/Engineer can consider structural details and design plans for submission to the Council.

The plans will contain details including:
Existing floor plan and details of any alterations

Sub floor, beams, bracing and tie down details.

Architectural elevations, location and orientationAny other relevant information
Lodgement of preliminary plans with the Council will attract fees that vary between States.

An Officer from the Council will then prepare a report of recommendations of building work required, such as:
Level of renovation work required - usually no patching is permitted and rotten materials must be replaced

Maximum building height

If roof replacement is necessary, including insulation

Generally rewiring all electrical workReplace/upgrading of plumbing

Installation of smoke alarms

Tie down, bracing and depth of footings

Determine the bond (Amount held by Council until all works are complete)

You may lodge a Building Application simultaneously with the Preliminary Application and again, fees vary depending on the size of the dwelling and number of plumbing fittings.

Payment of Council Bond and other fees

Most Councils charge a bond. This is a sum of cash to be held by the Council until all works are completed to its satisfaction usually within 12 months. The bond provides the Council with a safety net in the event that it needs to step in and take over an abandoned or unfinished job, or one which is not completed to its satisfaction. The bond is often a significant amount and this can put a huge drain on your cash flow. However, it is usually possible to ask for a partial refund as work progresses.

Before the house can be moved, all bonds and fees must have been paid to Council and the appropriate authorities notified. The contractor will need to provide the Council with proof of current insurance and a building services insurance policy may also be required. Bonds also apply for escort fees and security bonds for roads.

Once the house is in place

Make sure your contract specifies who will be responsible in the event that damage occurs when the house is moved. After the house is moved, as with all renovations, you'll need to have a team of tradespeople ready to start work. The sooner the house is finished, the sooner you can receive your bond back.

A final word...A removal house requires lots of careful research and planning, but the rewards are enormous. The satisfaction that you will gain from turning a dump into a shining diamond will give you immense pride, and co-ordinated correctly, a very healthy profit too.

SUMMARY OF THE PROCESS

Visit council or town planner

Purchase vacant land

Find suitable house for removal

Engineer report and architect plans

Lodge Preliminary plans with council

Council assessor visits house and site

Pay bonds and fees to move house

Renovate and certified

Certificate of Occupancy

Bond refunded

I have to say this looks quite complicated to me - not that I am averse to complexity but how does one take care of all of this at the appropriate time etc? One step at a time.