Why Melbournes Property Magicians Spencer Porter is creating $25k tiny homes

Real estate agent Spencer Porter said he has been inundated with inquiries after designing tiny homes that can be purchased for as little as $25,450.

He hopes the tiny homes will provide more affordable housing for Aussies, as well as for those in extreme poverty around the world.

The 22-year-old, who is the managing director of real estate agency Property Magician, said the idea for the homes, which on average measure 5.8m wide, 6m long and 2.9m high, initially came from a less noble problem.

“The idea for the tiny homes came from demand as I had a lot of owners that had large plots of land and needed poolside cabanas,” he told news.com.au.

“But then there were others that didn’t have enough money for a full home and land package and weren’t able to spend lots of money, so I did a lot of work to find a solution.

“I found tiny homes are extremely popular, mostly because of price and they are modular and portable, so we were able to tap into market that no real estate agency is looking at. A lot of people are obsessed with real estate boom, but people want flexibility to have a home anywhere, any time and at a cost that is doable for the average consumer.”

Since launching the concept late last year, Mr Porter said his agency has sold over 50 tiny homes in the last two weeks and had received more than 40,000 inquiries Australia-wide since December 2021.

While each home is customisable, Mr Porter said the most popular designs include one bedroom, a bathroom with a shower and vanity, a kitchenette and veranda area created by interconnected shipping containers, with the whole space 35sq m in total.

The Victorian said the homes are made with galvanised steel, while people can choose the colour scheme at no extra cost, while there are additional extras like double glazed windows.

He thinks the price has made the homes very popular, but said there are also other factors.

“You can take home anywhere and put it anywhere obviously with council permission and you can design something that is so low maintenance and very practical,” he said.

“If you’ve got a plot of land in a holiday destination why spend $600,000 to $1 million when (you) can build a modular home for 90 per cent less of the cost?”

While most people have stuck to the $25,000 price tag, Mr Porter revealed that he had one customer who had gone for a more "extravagant” tiny home that cost $100,000 because they wanted a multistorey dwelling.

But he believes the tiny homes also offer the chance for people to buy their first home and become “a homeowner in a way that they probably never could have before”.

“It is at a price point that people in their 20s can afford and its something that if they can get some hand on some land that is cheap and this is a much cheaper or practical solution to owning your first home,” he claimed.

“There is a lot of benefits to purchasing as one of these, they come with a five year builders warranty and it’s a way for younger generations and even older generations, who might not have had the chance to buy their first home, to be able to do that.”

Mr Porter also defended the liveability of the homes, despite their small space.

“You would be surprised how much room you don’t use … and you can still live in luxury without having a 100 square metre home,” he added.

He is anticipating they will sell $5 million of stock this year alone but he wants to pay it forward.

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“Every single tiny home we sell, we are building a tiny home in a country in need, to allow those who don’t have a roof over their head to have a home because everyone deserves to have a place to call home,” he said.

Tackling extreme poverty was an crucial issue for him, he added.

“It’s important that those who do make really good money use it for a good purpose and don’t try and hold on to become the next Elon Musk,” he said.

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