COULD INVESTING A TINY HOME BE YOUR NEXT BEST MOVE?
With the surge in demand for unique short-stay accommodations, tiny homes are becoming an attractive investment option. Whether you own rural land, a farm, or operate a venue like a winery or restaurant adding a luxury tiny home to your property could open up a new stream of income. Tiny homes are especially appealing to guests seeking nature-based escapes or cozy, high-end experiences, making them a versatile option for short-stay businesses.
Why Tiny Homes?
After conducting a scan of 60 Airbnb listings in New South Wales (NSW), we found that tiny homes average $336.03 per night. However, for the sake of conservative estimates, let’s base our calculations on a nightly rate of $250. Of course, pricing can vary depending on factors like peak seasons, holidays, and demand, allowing you to charge even more during high-demand periods.
Revenue Potential Breakdown
Here's what the annual gross income could look like at various occupancy rates, using a conservative $250 per night:
- 50% occupancy (15 nights/month): $45,000/year
- 60% occupancy (18 nights/month): $54,000/year
- 70% occupancy (21 nights/month): $63,000/year
- 80% occupancy (24 nights/month): $72,000/year
- 90% occupancy (27 nights/month): $81,000/year
Operating Costs and Profitability
Operating expenses, such as management, cleaning, insurance, and utilities, typically take up 20-30% of your income. At 70% occupancy, your annual gross revenue would be $63,000. After deducting 25% for operating costs (about $15,750), you would be left with a net income of $47,250 per year.
Jaya-One Cost Breakdown
With our Jaya-One luxury tiny home, you’re investing in a high-quality, revenue-generating asset designed for long-term returns. Our elevate package, which includes full delivery and installation, is priced at $194,999 plus any necessary site preparation – and this package provides everything you need to start earning as quickly as possible. There’s no need for additional costs or complex arrangements; this option is tailored to get your Jaya-One up and running, ready to welcome guests and generate income without delay.
Given its strong revenue potential, the Jaya-One could pay for itself within just over 4 years, depending on occupancy rates. Once your initial investment is recouped, every booking contributes directly to your profit. This steady stream of income can be directed toward property improvements, further investments, or simply offer a greater degree of financial flexibility and freedom.
Our process is straightforward and efficient: from the moment you lock in your start date and sign the contract, you can relax knowing that within 12 weeks or less, your Jaya-One will be delivered, installed, and fully operational – a complete solution ready to start generating income from day one.
Flexibility and Mobility
One of the greatest advantages of tiny homes is their portability. Unlike traditional fixed dwellings, a tiny home can be easily relocated to different properties, allowing you to move your investment if needed. This makes it particularly useful for investors or landowners who may want to shift locations or utilize the tiny home in new ventures.
Additionally, tiny homes hold excellent resale value. If you decide to sell, you can expect to recover a substantial portion of your initial investment, making it a financially sound option with built-in flexibility.
Finance Options
To make your investment more accessible, we’ve partnered with a trusted finance broker who can help arrange financing, so you can spread out the cost of your tiny home over time and ease the upfront financial burden.
Who Would Benefit?
- Landowners with rural properties, farms, wineries or wedding venues looking to diversify their income.
- Investors seeking high returns with lower initial costs compared to traditional real estate, but with the added benefit of portability.
Why Tiny Homes Are the Future
The demand for experiential travel is growing. Guests want unique, intimate, and luxurious getaways. Tiny homes, with their efficient use of space and high-end amenities, meet this demand perfectly.
Investing in a tiny home like the Jaya-One could be the ideal next step, providing profitability, flexibility, and an opportunity to tap into a fast-growing market.