Case Studies

Case Study Agritourism- Robert from Greta NSW

Robert has traditionally had a cattle and sheep farm, he was hit heavily in the last drought when there wasn’t a blade of grass in his paddock and the price of feed was so high and he had to get rid of a lot of stock. He has been slowly getting his stock levels back again and its gone back to dry so he is reducing stock again. 
Near Robert is a popular wedding venue and he is also close to the Hunter Valley Vine yards. 

Robert has decided to invest in accommodation this year instead of cattle, he has used the new legislation from the state government that allows him to add 6 dwelling on without council approval. 

See article below 
https://www.cabins.com.au/blogs/news/how-to-make-more-money-on-your-farm-with-new-rules-from-nsw-government 

Robert has started with just three units and will increase using the profits from the accommodation 

Rober bought three units which he picked up with his own transport. 

He had water and power for two of them, the third was totally off grid.. 

Costs were 

3 Units $95985 

3 x Hot water Systems $2250 

10,000 litre tank $2400 

1x 5 kw Solar System $15000 

1 x Septic system 1500 $840 

3 x Air conditioning $2397 

Total $118872 

Robert has bookings for every weekend at $250 a night 6 months in advance and gets weekly bookings as well, he has the accommodation fully booked for school holidays as well. 

He averages 4 nights a week at $1000 income per unit. 3 thousand a week. This figure is increasing as bookings are increasing. 

Income generated is $156000 per annum based on three units. 

Robert will have the units and installation fully paid for within a year and plans to add the other three units. 

Roberts projected return per annum based on 6 units is $312,000. 

 

 Case Study The Investor-Grant from Maryland NSW 

Grant wanted to add a Granny Flat in his back yard for extra rental income, he was close to a university and a hospital so there was always someone looking for accommodation in his area. 

Grant bought a unit from Instant Cabins and he added a trailer onto the unit, so it was considered a tiny home on a trailer 

See here for the legislation https://legislation.nsw.gov.au/view/html/inforce/current/sl-2021-0461#sec.77 

He plumbed into his existing sewage and ran a 15 amp 4mm dedicated circuit for his electricity. 

He opened the unit himself and did the fit out.

He added an instantaneous gas hot was system and used his own hose for the water supply. 

Costs were 

2 Bedroom Unit $31995 

Trailer $10,000 

Electricity Circuit $1200 

Plumbing $2600 

Instantaneous Gas Hot water System $750 

Total Cost $46545 

Grant rents his unit out for $400 a week , $20,800 per annum 

Case Studies- Rural Farm Workers Accomodation

 

Farm Workers Accommodation 

Troy from Coolamon with a Citrus Farm 

Troy had to add some additional accommodation for workers. He was having trouble getting workers and the first question they asked was what the accommodation was like, so he decided to fix up his workers' accommodation. Troy also plans to do farm stays when the picking season is over. 

Troy bought two units from www.cabins.com.au  

I have broken down his costs per unit. 

Unit itself was $31995, delivery was $2500 per unit. 

Troy and one staff member put the units together themselves and it took 2 ½ days per unit so he allocated $400 a day for the staff member. So $1000 in wages for installation. 

Troy placed each unit on Besser Blocks and needed 12 in total for each unit at $4 each $48. 

Plumbing, Troy used a 10,000 litre tank ($2,440.00) which was adequate considering the rain and it was only occupied by a couple. He bought PVC gutters from Bunnings for rain collection at a cost of $35 per side. 
For sewage he used a 1500L SEPTIC TANK at a cost of $860 which was adequate for a couple. 
He ran a dedicated 15 amp fixed circuit to each unit at a cost of $1400. 

Hot water system was a Midea continuous flow at $675.00 

For cooking he bought an air fryer, induction cooker and microwave from kmart at a cost of around $150 in total. 

Unit price $31995 
Delivery $2500 
Installation $1000 
Plumbing $3370 
Besser Blocks $48 

Price per unit delivered and installed $39588 

 

Horse Stud Accommodation 

Valery from Gundy NSW 

Valery purchased a unit for extra workers accommodation, she also plans to do farms stays when it is not being used for workers. 
Unit price $31995 
Delivery $2000 

Valery paid a local handyman to install and paid $3000 for installation. 

Plumbing was plumbed into the existing Envirocycle at a cost of $2200 for a 20 metre run. 

Water and 15 amp power was near the unit so a 15 amp lead from was run to it with poly pipe for the water. 
Hot water system was a Midea continuous flow at $675.00 

Valery uses an air fryer , an induction cooker and a microwave for cooking bought from Kmart at a cost of $150. 

Total cost was  
Unit price $31995 
Installation $3000 

Plumbing $2200 
Hot water System $675 

Cooking $150 
Total $38020