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But he warns that, while the income is good, “the initial outlay is much more than you expect. All the services add up. The cost of plumbers down here is insane, and the electrical work”. The cabins were finished two years ago and are now let out for about $180 a night each, with about 80 per cent occupancy.
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Richie Pearce says the cabins cost more than he expected to build, but the income from letting them out is coming in handy. With property prices sky-high and climbing, should more people consider building a second dwelling on their property? A self-contained sleepout or tiny home might offer flexibility for family and friends to stay, or options for longer-term tenancies, as well as holiday rentals. It might also increase the value of the property for re-sale.
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The Housing Minister says there are so many different figures being thrown around - from 28,000 to 200,000 - that it s impossible to put a specific figure on it (video first published in February 2021).
The average income of contractors working in real estate services, which includes most real estate agents, has boomed during the housing crisis. Tax figures show average earnings before tax (which included self-employment income and commissions on the likes of property sales) jumped 73 per cent between 2010 and 2019, going from $65,100 to $112,400. By comparison, during the same period the average income across all industries increased roughly a third, going from $42,700 to $56,500.
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The house represents the beginning of his property journey, he says - and yet it was an “accidental” purchase. This might sound a bit odd but, in fact, recent research conducted for property listings website Realestate.co.nz suggests that it is not that unusual. In the November 2020 survey, 14 per cent of respondents said they had bought a property when they hadn’t originally intended to do so. Of those who had done so, 4 per cent had done so in the past 12 months while 4 per cent had in the past two or three years. Realestate.co.nz spokesperson Vanessa Taylor said, in previous surveys, the response had been as high as 18 per cent, which is close to one in five people.
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