o procurement , site operations and maintenance , rent and fees policy and sale or rent policy . Demonstrate that dwellings will be provided at affordable rents while at the same time achieving a commercial yield to ensure feasibility .
• The landowner will procure a number of dwellings for Stage 1 . These may be built on site ( providing local labour is available ) or they may be modular prefabricated buildings ( see Figure 2 below ).
The dwelling shown in Figure 2 is supplied with the following inclusions :
• Fully insulated .
• All kitchen appliances .
• Split system air-conditioning and ceiling fans .
• Built-in robes .
• Tiles and floor coverings .
Figure 2 . Modular Housing Examples
• Fees and insurance .
• Footings .
• Delivery and crane .
• Erection on-site .
The dwelling is provided on a ‘ move-in ’ basis with the only additional items being window coverings and connection to services ( power , sewer ( or septic ), water and telecommunications ).
An alternative to the above approach is for the landowner to gain approvals and provide the basic infrastructure that is required . Sites would then be rented to residents who would source their own moveable dwellings . There could be a combination of the two approaches .
FINANCIAL CONSIDERATIONS While the financial equation will vary depending on the location ( remoteness , availability of services , etc .), analysis undertaken by the authors suggests an indication of the finances is :
The cost of a 3-bedroom modular dwelling as shown in Figure 2 ‘ ex-gate ’ is $ 200,000 .
A conservative allowance for site development and services is $ 40,000 .
Transport cost for 100km is $ 665 .
Total dwelling cost is $ 257,165 .
Onsite labour cost for erection with accommodation for workers is $ 16,500 .
Rent is assumed to be 8 % of capital cost , which is $ 20,573 per annum or $ 396 per week . This covers 3 % for outgoings and 5 % for profit .
Source : SC Lennon & Associates
Modular Housing 3BR 81.1 sqm 3 Bedrooms , 2 Bathrooms , Deck 15.4 sqm Supplied fully erected on a ‘ move in ’ basis .
Source : Direct Portable Buildings
Source : Direct Portable Buildings
ECONOMIC DEVELOPMENT JOURNAL VOL 15 NO 2 2022 31