This project is available now and is just waiting for a social enterprise group to purchase the land and make the project a reality.
(Preliminary assessment of the Bellingen LEP and DCP suggests that this is allowable development on this site, but is subject to DA Approval.)
This land is available now on the North side of Bellingen for approx. $430,000.
The project has the potential for 8 tiny houses situated around shared gardens and a community BBQ area, laundry & bathroom.
The project would be structured and run as per a cabin dwelling in a caravan park,
similar to what has been proposed by ‘Social Habitat Housing’ in Byron bay.
extracted from https://shh.socialhabitat.com.au/
– House size would be limited (90-150 M2)
– Resident is required to fund their own house (as a guide approx. $150,000 – $250,000)
– Owner may be able to sell or bequeath the dwelling to heirs subject to remaining lease terms
– Property will not be able to be used for investment or holiday letting
– Land lease could be structured as paying up front or as a regular payment.
– There will be a weekly community facilities payment. (likely in the region of $90 – 150 Per Week), note this payment may cover or subsidise some – living costs, such as power, telecommunications, insurance and transport.
– The intention is to create affordable living not just affordable housing.
The site is a steep site (where in Bellingen isn’t?), and needs some earthworks to cater to the housing.
This also means that the tiny homes would have to be built in place, rather than ‘trailer tiny homes’
(Although there may be 3 or 4 sites which could be accessible for a trailer).
For consideration, this type of project requires a ‘company’ to purchase the land and obtain a ‘manufactured housing estate’ operators license.
This company could be a group of individuals operating as a joint venture, preliminary cost plan would be as follows…
Purchase site $410,000 approx.
Pay Stamp Duty $14,000 approx.
Consultants & Approvals to secure DA $35,000 approx.
Consultants & Approvals to start construction $130,000 approx.
Site Holding Costs $30,000 approx.
Site Works & Build Costs. $300,000 approx.
Total Project Budget. $920,000 approx.
Gross Return = 8 x $150 / week = $62,400 per annum.
Council Rates/Fees to operate = $2,500 approx. per annum
Property Maintenance = $10,000 approx. per annum
NETT RETURN = $50,000 per Annum
Percentage Return on Investment.5.4% per annum.
This could be established as a joint venture or a company with a 40% ($370,000) deposit distributed amongst share holders.
This would make funding of the remaining $550,000 achievable through regular finance companies/banks.
The repayments over 20 years, 4.9% fixed rate interest is $42,000 per annum.
Loan repayments are less than the NETT return making the whole scheme feasible.
Note: any savings in land costs, construction costs etc… would potentially lower the lease cost per week per site.
If there are 8 people interested in contributing approx. $47,500 to establishing the joint venture land ownership, and then funding the $150,000 – $200,000 home, then this project is feasible now.