Why Modular Accommodation is the best thing to invest in right now.

No doubt you’d be aware that there’s currently a dire need for accommodation in this country. In fact it’s so bad that people are living in their cars or in tents just because they can’t find anywhere to rent! This is a pretty sad state of affairs when you consider that we’re supposed to be the lucky country …

But as the owner of a large property, did you realise that you could possibly contribute to the solution by investing in modular accommodation right on your property? Think about it – you have this parcel of land on your property that you’re not really using. It’s just sitting there idly and not giving you any return.

Why not consider letting that piece of land supply you with another income stream as well as give you a few extra tax breaks and increase your family’s wealth all at the same time?! Of course you’ll have to consider local council regulations as well as what type of planning approvals you’re going to need or whether the land is suitable for this type of venture.

But wouldn’t this be a great way to secure your family’s future and help other Aussies who currently don’t have a home to live in?

This crisis needs help from everyone!

While you might think this is a government problem (and we’re not saying it isn’t), there’s really no simple fix and it needs help from everyone and anyone who might be able to assist or who has the capacity to build an investment for their future.

While it could be considered a little controversial, some people do believe that the government is doing its bit, while others don’t think that the government is doing much at all to help alleviate the problem. A recent initiative can be seen in this article on the NSW Public Works website. 

The article states that the NSW government has pledged a $35 million regional housing package. This is primarily to provide accommodation for additional health workers in various regions such as Armidale, Glen Innes, Inverell, Muswellbrook, Singleton, Scone and Walcha, among others.

While this has the promise of helping alleviate some of the problem, it’s only a very small step and there’s still so much more that needs to be done.

Think about your local town – are there enough teachers at the school? Do you have access to a local doctor and other healthcare workers? Is there childcare available for mothers who could fill some of these in-demand vacancies?  While it might be possible to find people who can fill these vacancies from the city or even overseas, there’s simply nowhere for them to live!

But if you’re a property owner in a rural or regional area, you might just be in a position to invest some of your funds to build you and your family’s wealth as well as provide a better life for others in your community.

You might have half or a quarter of an acre of land near the road that you’re not using so why not put that bare paddock to good use and let it give you some return on your investment? Once again you’ll have to consult your local council first and consider whether your land is right for this.

Investing in one or more modular accommodation units will allow you to rent them out and alleviate some of the stresses that many people in your local community are currently facing.

What’s in it for you?

But hey, we’re not just suggesting that this is a good idea from an altruistic viewpoint of you being a good citizen and helping out the local community. Because it’s pretty obvious that there’s plenty in it for you and your family’s future too!

Firstly, you’ll be getting some monthly income from that bit of land that’s just sitting idle. Secondly, modular units that are well build will usually hold their value or even increase in value over time. This makes them a really good investment because you can always sell them down the track if your situation changes and you want to use the land for something else.

You’ll also find that having rental accommodation on your land gives you some nice tax breaks because generally any expenses can be claimed against your income.

What about in the long term?

It’s when you start to think long term, that you’ll be able to see the bigger picture and all the benefits that this could give you. 

For example, you might have young kids right now, but they’re going to grow up and will want their own space. Instead of them leaving the farm and trying their luck in the city, you’ll have separate modular accommodation for them right on the property so they can happily stay on if that’s what they really want to do while still having their independence.

What about when you decide it’s time to step back a little and let the next generation take over. While you might all be comfortable living under the one roof, this is not always ideal to say the least. Having additional accommodation on your property will give you some really good choices.

Or you might want to pull back a little from the production side of your farm and look at getting into agritourism instead. This is one way to still keep the money coming in when you don’t want to work quite as much anymore. 

As you can see, there are plenty of benefits to investing in additional modular accommodation on your property both for now and well into the future!

Which regions have been identified as being in crisis?

There was an article earlier this year on the Region Riverina website that identified Griffith as just one LGA with a growing rate of homelessness. The article stated that there were around 850 people in the region in 2023 who were looking for help because they were homeless. And you might be surprised to learn that some of these are regular working people and families with safe and secure jobs.

While the NSW government is working toward trying to solve this problem, there’s also strong appeal to local councils and the general community to help find some solutions. 

In fact, whenever you watch or listen to the news, there’s bound to be a story about the homelessness situation in our country amid stories about housing affordability and rental prices going through the roof. But this wouldn’t happen if there was plenty of accommodation available. The prices are only so incredibly high because there’s more demand than there is supply. It’s simple and basic economics.

Can you help?

If this has touched you in any way and you’re in a position to be part of the solution, why not have a look at all the options that are open to you?

Whichever way you look at it, property has always been and always will be, a good solid investment in your future and your retirement. Adding additional modular accommodation to your farm or regional property will only help to increase its value if you do decide – one day down the track – that you want to sell and retire completely.

In the meantime, you could be putting a roof over the head of a young family or maybe a local essential worker and reaping all the benefits of a steady rental income and tax breaks right now.

If you want to explore your options, why not give us a call and have a chat about what’s possible.