Affordable Housing project was basically formed as a result of encouragement from Facebook followers of our main business Cabin Kits Galore Australia to use our product to tackle housing issues – which provides extra space at an affordable price by means of backyard cabins and studios. Since starting in 2004 we have come a long way.
As CKG grew and started building 1,2 and 3 bedroom log cabins for caravan parks at a fraction of the price of competitors we thought maybe we could buy a house in Sydney and put a cabin up as a granny flat in the back yard. Well the “cheap house” sold for $950k which was well out of our means. Also the rental return was negative so it wasn’t a good option.
I started to think what about rural towns that could use affordable accomodation there might be a couple. Well turns out lots of investors are buying positive return housing in rural areas and therefore driving up the prices out there. In turn forcing more people to rent and then push those prices up.
See our product is very affordable if the land we build on is inexpensive. So unless the government released some crown land in the city for a project there is little chance our model would work in the city. After a lot of research Coonamble came up as the first project due to its demographics.
We are trying to offer a model where people can buy our units outright and pay a lease on their land (depends on the cost of the land to purchase) Or rent to buy, slightly higher rent and the units are paid off in 8 years at around (7%) plus the lease of land. Straight rental the cheapest weekly option inclusive of land lease. We would also like to offer furniture and appliance rent try buy scenarios a concept we might engage local business to get on board with.