Addressing the long term housing shortage issue meant assessing all facets in an end to end development model, pulling absolutely everything apart to arrive at a collective model that meets the growing problem of affordable and social housing in the construction sector. And it starts with innovation.
We could review residential development in many forms utilising existing SEPP codes, however, the typical construction methodologies stuck out like a sore thumb. Developing remotely and in regional Australia meant the prices of land was low, however, the usual construction pricing of purchasing products and adding 20% just did not stack up.
So where to from here?
We could increase yields, reduce contributions and entice greater development on this alone, but how do we do this when construction prices for homes between 30m2 and upwards sometimes exceeded $3000/m2.
So what if we founded a supply and manufacturing business? Sure we could become fat cats and increase margins but what’s the enticement for other people to buy and build?
That is precisely why we have been focussing on delivering innovative solutions to the market covering social, affordable, disability housing projects, minimising margins, collaborating, and delivering an end to end process for people seeking to develop their own land.
The complexities in social and affordable housing are long known, and yet we sit and wait on governments expecting there to be someone to fill the ‘gap’ in social housing without taking on the accountability for us to be the solution. And that is precisely what we are now delivering.
A factory in Brisbane, a company who has built 290,000 homes worldwide, a distributor, a manufacturer, and a place where we could connect the dots into a turn key development solution.
Homes were built from $35,000 ex-factory for 30m2, and beside the economical factor, the speed was incredible – under 155 hours! Granted, you need to allow for your connections and delivery, but suddenly in overseeing every touch point in the development model we had essentially created our own NRAS!
Lets take a look at the average investment into rents across Australia.
On average, Australian’s spend anywhere between $20,000- 28,000 per annum in rent across the states. You then look at a product delivered at ex-factory for $35,000 and suddenly with consideration to the new builders boost your annual investment looks like this! If you are a first home buyer, even better again, but still, not absolutely necessary!
Now if we were to look at traditional aged care development models or even manufactured home estates, you begin to tie in a leasehold of the land and your outgoings are minimised again!
Even if a smaller parcel of land is purchased the outgoings are suddenly substantially lower as a result of innovation.
Take the above table, suddenly the viability of people owning their own home is achievable!
We have long been known as the avocado toast eating, cannot go without generation, but there is also a growing need for minimalism as people wake up from being the long slaves of consumerism. And well, doesn’t that get boring quickly! Suddenly, you own 3 to 4 houses that could each yield an income of $250/ week!
With these unique models being executed across various sectors we are assisting people into their own home and substantially changing the way we deliver housing across the nation.
To find out more contact us here
© TSR
