# Forum Home Renovation General Odds & Sods  Removing and rebuilding an old house

## Moondog55

Just one of the  thoughts in my head at the moment before we spend another $40K on adding a wet area. wheelchair bathroom in this house. 
Given the current shortage of building materials is transporting a house now a really viable proposition. 
I just had this thought that if we left the big shed in place the block of land might be worth more as a vacant block than if we decided to sell up and move.
Although removing the shed at the same time wouldn't be all that difficult either.
House and land prices are stupidly crazy at the moment and I was thinking maybe we should get in before the coming crash

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## joynz

Check any tax implications to be sure that selling vacant land (I.e without a dwelling) still allows you to benefit from the 100% capital gains exemption in Victoria when selling your Primary Place of Residence. 
Without a house,  it may become ‘vacant’ land and may not count as a PPOR - and may therefore (potentially) be subject to GST.   
Get good legal and tax advice (the latter from a qualified accountant specialising in property tax matters). 
if you get advice from the ATO, get it in writing. 
Don’t make any assumptions about how vacant land may be treated legally  / by the ATO - best to check.

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## Moondog55

Not worried by any potential tax implications. Cecile has some expertise there and access to professional information.
More that I don't know if doing such a thing saves any money over a new FGU build. Any new house we build would not be slab on ground but on high stumps or some other way of getting 1200mm or more  off the ground
We have been playing with adding in  full depth great room in between the two halves of the house; this house having started life as a Housing Commision pre-fab in two halves it will fit on three trucks, and a 4th truck for the dismantled carport

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## droog

Given the current situation with the price of fuel don’t base any decisions on older experiences.
If you want to consider it as an option you need a quote from a house mover based on current costs.

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## Cecile

> Check any tax implications to be sure that selling vacant land (I.e without a dwelling) still allows you to benefit from the 100% capital gains exemption in Victoria when selling your Primary Place of Residence. 
> Without a house,  it may become ‘vacant’ land and may not count as a PPOR - and may therefore (potentially) be subject to GST.   
> Get good legal and tax advice (the latter from a qualified accountant specialising in property tax matters). 
> if you get advice from the ATO, get it in writing. 
> Don’t make any assumptions about how vacant land may be treated legally  / by the ATO - best to check.

  Presumably you know that Moondog and I are married and are tossing ideas around about what we will do for the next five to ten years in this house, including how long we'll stay (or be able to stay) because we're both aging.  I'm a tax officer so have a good understanding of a lot of this stuff.   CGT is a pretty complex tax topic and while I have training it's not my  area of specialty.  Even at work I'll speak to a subject matter expert - that's why we have them.  There's an element of "intention" too.  As in, what do you intend to do with the property?  What did you do when you decided to sell off the land?  Is it revenue or capital? 
I'll also comment that ATO doesn't give advice on  the phone.  Generally, they will point the taxpayer to the correct  information to read, and suggest that if they don't understand how it  applies to their particular circumstances to seek professional advice.  Anyone who wants binding advice about a tax matter and how it applies needs to write in and request it.  Never on the phone.

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## wozzzzza

> House and land prices are stupidly crazy at the moment and I was thinking maybe we should get in before the coming crash

   what crash is this and when??

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## Moondog55

wozzzzzza the current price of housing is unsustainable and interest rates are going to start climbing soon.
Past experience worldwide is that every boom period is followed by a severe downturn in the market.
I'd call that a crash and I expect it within 2 to 5 years, I'd like to cash in if possible and then buy when the market falls and prices are a lot lower.
Mind you I've been wrong before but I think this is highly possible, I lived through Paul Cheatings "recession we have to have" and would prefer not to come out on the bottom this time around.

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## Moondog55

Current relocation costs between $30k and $35k; already up $10K

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## cyclic

> Just one of the  thoughts in my head at the moment before we spend another $40K on adding a wet area. wheelchair bathroom in this house. 
> Given the current shortage of building materials is transporting a house now a really viable proposition. 
> I just had this thought that if we left the big shed in place the block of land might be worth more as a vacant block than if we decided to sell up and move.
> Although removing the shed at the same time wouldn't be all that difficult either.
> House and land prices are stupidly crazy at the moment and I was thinking maybe we should get in before the coming crash

  If you are considering moving an existing home onto a block, first talk to Council because they may require a bond ($15000 in Qld in early 90's) which they keep until they are satisfied with the finished project.
Also you may have to rebuild parts of the home to comply with today's regs 
i.e bathrooms railings electrical plumbing tie downs not to mention drainage, possible new roof and the list goes on.

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## Moondog55

Agreed cyclic; but at the moment just Brainstorming to decide on practicalities. Ceciles daughter has been waiting almost  a year now for work to start on her house frame.
If we decided to move I'd not want to wait that long.

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## doovalacky

I would seriously be looking at the existing market before trying to move an old house. There is an lot of extra costs that creep in. 
Landscaping, sewer / water connection.
Often a major/complete rewire of the electrical in house.
Then all the repairs to the plaster work and roof from the move. 
Having had a quick look at Geelong prices perhaps consider moving to a different area as part of retirement/semi retirement.
I can easily pick up a near new 4x2 in good condition for ~450k in my area and significantly less for something smaller. 
A few years back I used that to upgrade from a 20yr old 3x1 to a brand new 4x2 just by moving 30mins drive.

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## Moondog55

I don't think we actually want a new million dollar mortgage, Cecile wants a dedicated sewing room and I want a largish room suitable for music reproduction. 
In hindsight we should have gone up and put the second story on this house ten years ago, before we did all the other renovations work but I don't think anybody foresaw the huge jump in local prices or the speed with which the Covid panic affected house building. 
Our major mistake was not building the new shed first, if we did move I'd remedy that lack of planning.

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