Caravan on an investment property

Discussion in 'Investment Strategy' started by JaZZa909, 1st Apr, 2021.

Join Australia's most dynamic and respected property investment community
  1. JaZZa909

    JaZZa909 New Member

    Joined:
    25th Feb, 2021
    Posts:
    2
    Location:
    Caves Beach
    Hi All,
    Has anyone put a caravan (tiny house) on an investment property and rented it out separately to the house? It seems feasible but I'm not sure how you'd manage it in terms of utilities, mail and renting it out separately to the house? I've got a great piece of land next to my investment property that isn't large enough for a granny flat but could easily fit a caravan and has a separate entrance.
    Thanks for your input!
    Cheers,
    James
     
  2. JaZZa909

    JaZZa909 New Member

    Joined:
    25th Feb, 2021
    Posts:
    2
    Location:
    Caves Beach
    Also uncertain how you would insure the caravan?
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,442
    Location:
    Sydney or NSW or Australia
    Are you able to live in a caravan without council approval?

    Sanitation?

    Fire risks?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,561
    Location:
    Australia wide
    paulF, sydney sid and JaZZa909 like this.
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,984
    Location:
    Sydney
    Council approval may be the concern.

    Clause 77 of the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2005, which states that

    'The prior approval of the council is not required for: (a) the installation of not more than 2 caravans, campervans or tents on any land, so long as they are not occupied for more than 2 days at a time and are not occupied for more than 60 days (in total) in any single period of 12 months'.

    77(b) exempts owners own use as follows
    the installation of not more than one caravan or campervan on land occupied by the owner of the caravan or campervan in connection with that owner’s dwelling-house, so long as it is used for habitation only by the owner or by members of the owner’s household and is maintained in a safe and healthy condition, or
     
    sydney sid, Terry_w and JaZZa909 like this.
  6. Alex P Keaton

    Alex P Keaton Well-Known Member

    Joined:
    14th Nov, 2017
    Posts:
    496
    Location:
    Perth
    Thanks for this

    I’m thinking of moving into a caravan on the front lawn of my parents house. I hope I qualify as a member of the household. I will be helping care for my parents with the housework as they are aging and not as healthy as they used to be. Mum wouldn’t mind me living in the back room but dad and I are keen on our own space and privacy so I’m thinking of parking either a caravan or a shipping container on their front lawn. I hope council approves it.
     
  7. sydney sid

    sydney sid Well-Known Member

    Joined:
    31st Jul, 2021
    Posts:
    979
    Location:
    sydney
    Transportable Homes NSW | Modular Homes Australia
    I chatted and met the owner of this company, Steve, some time ago when i was looking at getting a granny flat. I have a rear lane and most houses on my street converted their garage into a granny flat. But our street is zoned R4 for 15 metre high units, so i was looking for something i could relocate if i ever sold to a developer. From memory, there was no need for a DA with these because they were deemed caravans and were within 60 square metres ( I think was the limit). But not sure if they still need council approval or if DA and council approval are the same thing. Steve was terrific. He's been building them for decades and goes to work 7 days a week because he just loves it. He'll chat all day with you, including answering your questions about council approval. And believe me he doesn't need the money. From memory his 28 acres got bought out for about $33m, being near the new airport. And he bought it for about $90000. But he just loves building these. I'm dubious about council allowing it on the front yard though, so best check this.
     
  8. Ruby Tuesday

    Ruby Tuesday Well-Known Member

    Joined:
    8th Mar, 2021
    Posts:
    1,566
    Location:
    Danistan
    Yes you can depending on council regulations and willingness to enforce them. People do it all over the place all the time their are usually exemptions. Council may make attempt to enforce regulations if there is a complaint and even then possibly approval given or no action taken.. The regulations Paul put up are only relevant to a particular LGA.
     
    Alex P Keaton likes this.
  9. Alex P Keaton

    Alex P Keaton Well-Known Member

    Joined:
    14th Nov, 2017
    Posts:
    496
    Location:
    Perth
    My other idea is to buy a small motor home and park it in my parents garage. I could sell my car and drive the motor home. A used one costing $20-25k. Preferably one with its own toilet. Shower doesn’t matter so much as I can use my parents shower but I’d need a toilet for nighttime.

    Maybe something like this
    2013 Toyota Hiace | GRAVEL MOTORS
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,561
    Location:
    Australia wide
    You should note that each state has different legislation for this sort of thing. The legislation Paul quoted was for NSW
     
  11. Ruby Tuesday

    Ruby Tuesday Well-Known Member

    Joined:
    8th Mar, 2021
    Posts:
    1,566
    Location:
    Danistan
    Terry_w likes this.
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,561
    Location:
    Australia wide
    Saints lad likes this.
  13. Ruby Tuesday

    Ruby Tuesday Well-Known Member

    Joined:
    8th Mar, 2021
    Posts:
    1,566
    Location:
    Danistan
    Paul must not get about much plenty of people living in caravan in backyards in NSW. I think some councils dont have any regulations about it if they do it is not enforced.
     
  14. paulF

    paulF Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    2,167
    Location:
    Melbourne
    How interesting, was checking this idea out over the weekend after watching some living of the grid show...

    I'd love some acreage in the country and I was looking at those portable homes from VanHomes as a means of income, such a cheap airbB&B and then i can use it whenever i want to stay there for a long weekend.

    They have a tool that helps determine if council approval is required:
    VanHomes | Helpful Council Regulations Search
     
    See Change likes this.
  15. paulF

    paulF Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    2,167
    Location:
    Melbourne
    I checked with Greater Bendigo council on this... Basically emailed saying i want to buy vacant acreage and don't want to build a permanent structure and I told them i want to put one of those VanHomes - Granny Flats Australia and just use it as a weekender.

    Their response was that no permit required as long as occupation is less than 21 days per Calendar year. The caravan can be left on the property as long as it is not occupied. Don't know how they can police that...

    Still in contact with them and checking if it would be legal/possible to use the a mobile home as an airb&b but i think that would have totally different requirments.
     
    Terry_w likes this.
  16. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,186
    Location:
    Sydney
    Not sure on the legality of that , but campify is an Airbnb for caravans . People hire one and take it away their holiday Not sure on whether it makes sense purely as an investment .

    cheers

    cliff
     
    paulF likes this.
  17. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,778
    Location:
    Gold Coast (Australia Wide)

    Just for reference this is a scam website..............their pricing is a dead give away


    scamnet.

    ta
    rolf
     
  18. paulF

    paulF Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    2,167
    Location:
    Melbourne
    As above, I checked with Greater Bendigo council on wether I can airbnb a caravan/Mobile home if i buy a parcel of land and they weren't very direct about their reply stating that they need a specific address to make a judgment but that is for requring a permit which is fair enough.

    So what i understood from them is that anything less than 21 days a year does not require a permit and airbnbing doesn't matter as the permit comes with the land and not the occupier.

    Asking directly about airbnbing, as in made it very clear that this will be a weekender occupied for less than 21 days a year that might be airbnbed within the aforementioned 21 days, they didn't say specifically that i can't do that so seems like it is ok. Anything above the 21 days and a permit will be required and it will be treated as a dwelling.

    Though don't know about the tax/cgt implications of this and probably is not worth it to airbnb anyway in case of it being used as a weekender
     

PropertySensor understands how the alternative debt markets operate. We structure out-of-the-box solutions with private lenders to fund your bespoke projects and help to finance your unique situation. Learn how we can assist with funding.