Yahoo Finance Young Aussie builds $98,000 first home in a day: 'Cost-effective'
Eryn Norris bought a relocatable home for $98,000 and said it was a more affordable way to get her own place.
A university student has shared how she bought her first home with just a $20,000 deposit. Relocatable homes are growing in popularity as younger Aussies turn to more affordable housing options as property prices and the cost of living soar.
Eryn Norris bought a relocatable home for $98,000 and told Yahoo Finance it was a much more affordable way for her to enter the property market. The 23-year-old Central Coast resident set up the 42 square metre home on wheels, which comes with a bathroom, bedroom and combined kitchen and living space, in her mum’s backyard.
“It was so much more accessible. The cost-effective part of it was probably the biggest drawcard to buying one,” Norris said.
“Buying a house definitely wasn’t in the picture because I was a broke uni student and renting was also ridiculous for similar-sized houses on the coast.”
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Norris said the relocatable home took about two months to arrive after being purchased. Rather than constructing the building on-site, relocatable or prefabricated homes are constructed off-site, often in a factory, and then transported to the individual's desired location.
The full-time student said the property was towed via truck to her mum's backyard and took less than a day to assemble.
“They towed it into the property and reversed it into place and that was kind of it. The process surprised us how easy it was,” Norris told Yahoo Finance.
“When it arrived, it was still folded up and they finished it by the end of the day. They unfolded it all and it was so cool to watch it all happen. It arrived that morning and by that night, it was finished.”
Norris saved up a 20 per cent deposit for the relocatable home - through previous jobs and living at home - and received a loan from a family member for the remainder.
“This felt like a great use of that money, to take a step forward towards home ownership,” she said.
The home is connected to the main property's electricity and plumbing, with Norris splitting these bills with her mum.
While she said the home wasn't huge, Norris said it was the "perfect size" for herself and her dog.
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‘Instant homes’ becoming more popular
VanHomes founder Vito Russo said “instant homes” were gaining popularity among Aussies looking for a cost-effective way to get into the property market.
"We are seeing an increase in the number of people turning to instant housing because of all the benefits it offers,” he said.
“Not only is it cost-effective, it actually travels with people as their lifestyle and family situation changes. This is one of the key reasons why people are finding that it is the ideal solution.”
Building Ministers have agreed to work together to "cut red tape" surrounding the prefabricated and modular construction industry.
“We need to build more quality homes quickly - prefab and modular housing gives us a chance to do that,” Minister for Industry and Science Ed Husic said.
“We need to pull every lever to help use advanced manufacturing to support the rollout of these homes.”
VanHomes relocatable homes range in price from $65,000 up to $136,000 for a three-bedroom home and arrive on site with all fittings and fixtures included.
Resales have typically been about 90 per cent of the home’s original value if well maintained.
Property market still ‘unachievable’
Norris said she hopes she will be able to buy a standalone property in the next 10 or 20 years but said this goal still “seems so unachievable”.
Australian home values rose 0.5 per cent in August, the 19th consecutive monthly increase reported by CoreLogic. The median home is now worth $802,357, while in Sydney it is $1,180,463.
Norris said she is glad she bought her relocatable home and said having it in her mum's backyard meant she could still be close to her family while enjoying her own space.
“I still have that reliable source to go back to Mum if I need something or with any issues she is close by to help. And if she needs my help, I’m close to help with my sisters or whatever it is,” she said.
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