After the storm. Investors interest.

Discussion in 'Airbnb & Short Term Letting' started by Taya, 14th May, 2020.

Join Australia's most dynamic and respected property investment community
?

Is there interest out there for this idea?

  1. No

  2. Yes

  3. Possibly, with more details

Results are only viewable after voting.
  1. Taya

    Taya New Member

    Joined:
    14th May, 2020
    Posts:
    3
    Location:
    Sydney
    I know this is an interesting time to put out this question. But given the time frame it would take to set up, (1 year estimated from purchase of property) by the time this vision became reality chances are people will be up and travelling again.


    I am looking to see if there’s any interest out there for this.


    We are looking to obtain a property we can use for animal rescue and rehabilitation. Unfortunately we can not afford this on our own, so here is our solution. Yurts. Selling accomodation that we build, host, clean, create entertainment and manage for you.

    Either split between friends and use as hassle free holiday, or rent out as AirBnB with the option to stay whenever you like.


    Rough numbers at this time. But it looks like this


    Base price

    $105,000 for 5.12-7.9 metre $95,000 for 4 metre and under
    This pricing includes:
    Labour, development, construction, permits

    Financial system set up

    Standard yurt decor

    Heating

    Covers land

    Management and cleaning done for you. Just receive income made and paperwork

    You set your Airbnb price (within Airbnb regulations)

    Advertising

    Feel free to add own decor and extras to cut costs

    Custom sign and naming of yurt

    Inside yurt bath OR extra fold out beds included

    Helps towards building of animal sanctuary


    Add on to base price the following

    Size including felt and waterproofing

    3.9m- 12sqm $7,782

    4.44m- 15sqm $8,242

    5.12M- 21sqm $8,899

    6.32m- 31sqm $10,407

    7.9- 50sqm $9700


    Doors

    Wooden door and Aluminium alloy door options

    1 included

    2 $470-$550

    3 $940-$1100


    Windows


    Aluminium Alloy Windows

    1 included

    2 $112-$153

    3 $224-$306


    French windows

    1 $227

    2 $454

    3 $681


    Optional extras include

    Deck

    Kitchenette

    Extra decor options

    Extra bathroom options

    Entertainment and comfort options


    Most expensive total being roughly $125,000


    Least expensive total being roughly $105,000


    We would create welcoming spaces for guests, options of farm attractions, natural attractions, and attempt to create something magical people can enjoy their time at and have options on activities.


    We would ideally purchase a property in the blue mountains, or between Berry and Ulladulla.


    Prices and details will be calculated and set in stone along with revealing more details if there is any/enough interest.
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,831
    Location:
    Perth, WA
    Building and planning regulations? Sounds like the sort of thing that wouldn't be allowed. And then how would you be selling these off without being able to subdivide?
     
  3. Taya

    Taya New Member

    Joined:
    14th May, 2020
    Posts:
    3
    Location:
    Sydney
    There are existing set ups like this that before Covid were doing well. The right piece of land would be found with council guidance and there would be minor sub divisions for different uses of land. But the goal is not to subdivide and to own the land on which the yurt is on. No need to subdivide as the land would be either in trust or owned by us. We would be offering in return, construction and management of the structure (cleaning, reservations etc) and whatever income is generated by the structure goes to the owner of the yurt. We would be an accomodation business with each yurt owned by an investor who then has the choice of using for income, holidays, or both.
    The buildings will be allowed after permits for land use as an accomodation business have been approved. Plus the size of the yurts help avoid a lot of hassle.
    Legally, it can be done. It’s up to peoples interest and ability to work together to make it a reality. This is a combination of various structures that already exist and have proven to thrive. I can share links to legislation, and places that the idea have been based off of if you’re interested.
     
    Last edited: 14th May, 2020
  4. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,831
    Location:
    Perth, WA
    I've never heard of such a thing. I'm particularly sceptical of what people buy exactly if there's no subdivision. From their point of view, it could be a ponzi scheme?
     
  5. Taya

    Taya New Member

    Joined:
    14th May, 2020
    Posts:
    3
    Location:
    Sydney
    We would construct and run a business we wouldn’t make money from, and would put effort into making viable and give guests a pleasant experience with options on activities. Running a business investors profit from to obtain land to have multiple uses, the goal being to rescue and rehabilitate wildlife. I understand the skepticism. But if there’s enough interest, everything will be done by the book and legally. There will be safe guards in place for both us and investors. Our part of the investment will take care of the nitty gritty. As I said, at this point, we are purely looking to see if there is any interest in a yurt accomodation that can be used by the investors or for them to rent out for accommodation.
     
  6. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,831
    Location:
    Perth, WA
    I'm worried you're just trying to do too many things at once. Any individual one component of your plan would be difficult to pull off without exposing yourself to liability and financial risk, let alone all at once.

    Plus you say in your first post that the accommodation side of the project is because "you can't afford it on your own" , but then later on you say you're not making any money from it.

    In my experience, keep your financial and person goals as separate as possible.
     
    PurpleTurtle likes this.
  7. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,323
    Location:
    Australia
    Assuming its all legit and you can get council approval. Its still a huge project. What experience and skills do you have to make people trust that you can pull this off?

    without subdivision, people are either lending the owner money or owning shares in it with no control. Thats will require a lot of trust.
     
    Last edited: 14th May, 2020
    PurpleTurtle likes this.
  8. iloveqld

    iloveqld Well-Known Member

    Joined:
    11th Jan, 2017
    Posts:
    920
    Location:
    Brisbane
    Agreed, and will need to make more sense to cover risk comparing to putting the same fund into the share market right now.
     
  9. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,323
    Location:
    Australia
    Disagree in that this wont make sense as a normal investment. But even as a non profit donation, youd still have to convince people its viable.
     
  10. Guest

    Guest Guest

    Maybe as a small holiday home (or even for retirees) this could be attractive to a limited number of people... but as an investment?
    Not owning the land is a big problem..
    How do I know you won't build more?
    How does it not turn into a race to offer the lowest rent among the yurt owning investors?
    Slapping a different coloured coat of paint and a different name on each of the yurts isn't really differentiating them enough.
     
  11. iloveqld

    iloveqld Well-Known Member

    Joined:
    11th Jan, 2017
    Posts:
    920
    Location:
    Brisbane
    Investors will ask for ROI, exit strategy, or at least some numbers in return with some proof (even guesstimate) .. If none of them exists except the cost, then it is not making any investment sense at all. Ideas are ideas, not investment.