With a growing demand for housing units in Dannevirke, builder Glen Higginson is about to begin a project to build three close to town.
Mr Higginson, owner of GSquared Builders, has owned the derelict house on York St for 10 years and told the Dannevirke News the time was right to put new houses on the site.
"There wasn't much holding this place up and I'd already taken the rimu out for my parent's house," he said.
The last owner of the property was Ted Cruickshank and demolition contractor Ernie Christison said he had heard stories of the bath falling through the floor of the house with Mr Cruickshank in it.
Mr Higginson said he wanted to get the old house down, the section cleared and levelled and then he would get plans drawn up for new, smaller units which were insulated and warm.
"It's a good site, nice and handy to town," he said.