But obtaining financing could be tough, broker warns
Relocatable homes offer first-time home buyers hope to enter the housing market, but obtaining financing for these alternative housing may prove challenging.
Relocatable homes not only offer affordability and flexibility, they also offer a practical solution to the obstacles of entering the housing market, including high prices and limited inventory.
Relocatable homes “provide an affordable option compared to traditional houses, with reduced construction costs and customisation options to fit various budgets,” Haines House Removals said in a statement.
“The flexibility and adaptability of relocatable homes allow homeowners to easily relocate or modify their living spaces according to changing needs. Additionally, faster construction timelines and improved energy efficiency make them an attractive choice.”
Relocatable homes have become increasingly popular in New Zealand in recent years, providing first-home buyers an attractive, more achievable home amidst an ongoing housing affordability crisis and rising demand for housing options.
The cost-effective option, Haines House Removals said, also preserves existing structures and offers site selection flexibility. Moreover, “it can be a wise financial investment, potentially increasing property value,” the house removal company said.
Industry experts agreed these homes offer first-home buyers significant benefits.
Gavin Lloyd, Trade Me property sales director, noted the rising demand for houses for removal, with listings surging 93% in February 2022 compared to the prior year.
Lloyd said people see second-hand homes as a more cost-effective option, especially with the cost of building new houses doubling during the COVID-19 period.
In February 2022, the average asking price for a property for removal was $88,941, up 41% from the previous year, Trade Me data showed.
Shane Paul, New Zealand Building Removals owner, too, agreed that a relocated home provides a more affordable alternative to building new. Paul’s company moves around 50 houses a year, enabling people to achieve homeownership that may not have been possible otherwise.
John Bolton, CEO of mortgage broker company Squirrel, said securing financing for relocatable homes can be challenging, though, particularly for first-time home buyers. Banks typically require the home to be firmly fixed to the ground before considering it suitable security for a loan. Investors with existing property equity may find it more feasible, though.
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