Why Tiny Homes are Gaining Popularity

Tiny Homes are gaining popularity across Australia, especially in Western Australia, where housing affordability, regional build accessibility and sustainability are key concerns.

Summit Homes Group launched Tiny Homes as a unique and innovative product line, drawing on over 46 years of building experience for West Australians. Launched late 2023, there has been huge enquiry on these very stylish, affordable and compact homes.

The unique difference of these homes is simple, it’s the modular construction method which is very different to traditionally built homes. Tiny Homes are pre fabricated, which means they are built in our Factory in Canning Vale, then transported to site for installation.

The greatest benefit of the range is shorter construction time frames, this is made possible by its modular construction methods says Brad Bairstow, General Manager- Modular, Backbone Steel and Tiny Homes.

“In 16 weeks from slab down, customers can expect their Tiny Home to be installed, then a further few weeks for final touches which may include landscaping, fencing, decking and so on.”

“We have been blown away with the response, and are expanding our workforce and facilities to keep up with demand,” he added.

Offering a minimalist, cost-effective, and eco-friendly housing option, Tiny Homes are appealing to homeowners and investors alike. But are they a good investment? Let’s explore the benefits, challenges, and overall potential of Tiny Homes in WA.

Do Tiny Homes Appreciate in Value?

Tiny Homes, unlike traditional properties, often don’t appreciate in value on their own. Tiny homes can appreciate in value, this is usually tied to the land they occupy rather than the structure itself. When added to an owned property, Tiny Homes can significantly enhance its utility and market appeal.

Tiny Homes on Owner Property: Adding Value

Increased Property Functionality: Adding a Tiny Home to your property creates additional living space and a potential rental opportunity, increasing the overall value and usability of your land.

Boosting Investment Property Marketability

Properties featuring a main house and a Tiny House in Western Australia stand out. Buyers are drawn to the flexibility these setups offer, from hosting family to generating rental income.

Dual-Use Potential

Tiny Homes provide a versatile option for families, retirees, and young buyers looking for spaces that offer multiple uses. They can serve as a guesthouse, home office, or even short-stay rental accommodation.

Benefits of Investing in Tiny Homes

There are many benefits to investing in one or multiple Tiny Homes for your property. Tiny Homes are an affordable entry point for investors, they have lower running costs due to their compact size, and are a sustainable long-term option for generating short-stay rental income. Here is a further breakdown of how you can make the most of these benefits:

Generate Rental Income

Tiny Homes are ideal for generating rental income, particularly for short-term stays. In desirable WA locations, a Tiny House can generate $200–$400 per night on rental accommodation platforms, making it a profitable investment. Tiny Homes can also be used as workers’ accomodation in areas where housing is in short supply.

Affordability

With costs typically ranging from $199,000* to $299,000* plus transport in WA, Summit Tiny Homes are a more affordable investment compared to traditional homes.

Reduced Running Costs

Thanks to their compact size, Tiny Homes use less energy for heating and cooling. Many include features like solar panels (at additional cost), further reducing ongoing expenses and the environmental impact of the home.

Environmentally Friendly

Tiny Homes reduce carbon footprints through using sustainable materials, less materials overall, and having smaller living spaces. They’re an attractive choice for eco-conscious buyers and renters.

Low Maintenance

The compact size of the home itself means that there are less maintenance and repair costs, in addition to reduced utility bills. The construction methodology for Tiny Homes utilises Truecore steel, which reduces the amount of pest and termite management required.

Flexibility

Another benefit of the smaller size of the home is that there is more flexibility on where the home can be located. We can deliver to regional areas, where most builders can’t or won’t go. In general, site works are less and we have various solutions for sloping sites that require very little disruption to the natural ground.

Consider the Challenges

Zoning and Regulations

Zoning laws in Western Australia can limit where Tiny Homes can be placed or rented out. Always check local council requirements before proceeding.

Location Matters

The profitability of short-term rentals depends heavily on location. Tourist hotspots offer high demand, while remote areas may see limited interest, unless rented out for workers’ accommodation in areas where housing is in short supply.

Summit Tiny Homes are pre-fabricated at our Canning Vale facility. The Tiny Homes are then transported to the final location for installation – generally Tiny Homes are suited for regional and rural properties corner lots are also easy to access as we can come in from the side and not go past or over an existing home where there is adequate access for a large truck to place the home into position. In some cases, a crane is required for installation, however this does add costs for installation.

Are Tiny Homes Worth the Investment in Western Australia?

Tiny Homes can be a great investment for those seeking affordable, low-maintenance, and eco-friendly housing. Whether you’re looking to generate rental income or enhance your property’s utility, Tiny Homes offer flexibility and strong potential returns.

The biggest take away when considering a Tiny Home, is the ability to generate additional income or be your primary home within such a short timeframe.

If you’re ready to explore Tiny Homes in Western Australia, Summit Homes Group can help. As a trusted builder, we specialise in designing high-quality, Tiny Houses that suit your needs.

Experience our Tiny Homes Display village today, located at Myaree and Yalyalup WA.

Contact us today to discuss your options and take the first step toward your Tiny Home investment.

Download our Tiny Homes Brochure today.

Images are render files and for display purposes only.