The container home concept originated in Australia as an affordable – and potentially sustainable – housing option. While they are seen as offering potential for alternative housing options, there are also significant stumbling blocks of which you should be aware before taking the plunge…
Financing the build
While a container “build” is quicker and potentially more affordable than a traditional brick-and-mortar building, you still have to buy the land and comply with local – and national – regulations. Regulatory authorities are usually slow to recognise innovation, as are the banks, so container home builders might face challenges when trying to get the necessary approvals. Container homes must must subscribe to the National Building Regulations and Building Standards Act (Act 103 of 1977), which means that they must meet the same structural, zoning, and safety requirements as conventional buildings. In areas where no specific container home policies exist, approvals may be assessed on a case-by-case basis.
Banks are still cautious when it comes to approving home loans for container homes. However, some, such as FNB, are beginning to explore the possibility. In the meantime, specialized lenders are stepping in to offer financing options, though these typically come with shorter repayment terms compared to traditional home loans.
As with any major build, even if you’re considering a container as an add-on to your existing property, you will need building plans. Having these plans passed by your local authority can sometimes be challenging, as not all local council offices will accept container home builds or might impose extra regulations and restrictions on these kinds of builds.
Perks of container builds: sustainability & flexibility
Despite all the stumbling blocks, you may be determined to fight the good fight because container homes are more environmentally friendly than a traditional build: by repurposing otherwise useless containers that would either go to a landfill or take up yard space, you’re reducing your carbon footprint and reducing waste, both of which have an impact on greenhouse gas emissions, promoting sustainability.
In addition, once you’ve acquired all the approvals, they’re relatively quick to erect and are easily customised to your specifications for sustainable living. For example, you could add insulation to make your home energy efficient (and more comfortable), or install a solar water heater and tanks to harvest rain and dew.
But, that’s not all. Even within the constraints of a modular approach, homeowners have a great deal of flexibility for extending their homes when the family grows. Containers lend themselves to modern, open interiors that, in turn, can open to nature and for those whose container homes are not close to nature, you can add a deck and pool and/or create rooftop seating and container garden.
What about the shipping container home resale value?
When you are adopting alternative building practices for sustainability reasons, you might not always consider the resale potential. While you may intend to live in your container home for many years, life can get in the way. You might be forced to sell unexpectedly at some stage, so when you’re doing your initial planning, bear these points in mind:
- If yours is not the first container home in the area, that already suggests demand which, in turn, can have a positive impact on resale value – check this with your local RE/MAX agent.
- Often, container homes are seen as short-term options. Remember, though, that shipping containers are designed to withstand harsh conditions, which makes them highly durable. This means that with proper modifications and maintenance, a container home should last for 25 years or more.
- As with every home, maintenance affects both its lifespan and value. As with any alternative construction, your container home will have its own special needs including managing rust, insulation and structural integrity.
- Related to the last point, are environmental issues: if you live next to the coast and/or in an area with potential for pests with climatic extremes, these must also be factored in.
Insights from a RE/MAX broker
In our research for this article, we spoke to Nadia Aucamp, who has two decades’ experience, operating in the Alberton and Germiston areas of Gauteng, who says that while there hasn’t been been a significant demand for container homes in those areas, the agents have observed a gradual increase in the use of container homes in the South of Johannesburg.
Aucamp notes, “From a cost-efficiency perspective, container homes can be an attractive long-term investment, particularly for buyers with budget constraints. They offer affordability, quicker construction times, and potential sustainability benefits. Additionally, they can serve as rental units or supplementary dwellings, adding value to a property with multiple structures.”
However, when it comes to resale, when compared with traditional, brick-and-mortar homes, she notes, “container homes are met with some scepticism from buyers unless they are located in trendy, high-demand areas where this type of housing is more widely accepted. While some newer, upmarket areas have introduced container homes, they are still in the early stages of gaining favour among buyers”.
Consequently, she notes that in most local markets, traditional brick-and-mortar homes continue to hold better resale value because buyers perceive them as more permanent and established structures. Despite the original owner’s vision, buyers tend to see container homes as supplementary, temporary and mobile rather than as permanent structures with lifespans similar to their brick and mortar counterparts. This means that in the current market, the resale value may not appreciate at the same rate as that of conventional homes. That said, as the container home trend gains traction with more municipalities formalising regulations to include alternative building methods, resale values may improve.
Considering a container home?
If you’re considering joining the container home trend, do your homework: comply with local and national regulations and bear in mind that most of the companies that do container home builds offer a range of packages, with the lowest cost options being the most basic, which may even exclude basic insulation and panelling. If regulations become more standardised and demand increases, container homes will continue to gain stronger investment appeal over time.
If you would like to find out more about container homes in your area, reach out to your closest RE/MAX office.
