Mudbrick investments
The Owner Builder
By Unknown
A builder in Victoria constructs a future investment income from a complex of owner builder structures
Ever thought about creating an owner built investment property as a potential answer to your long term superannuation and retirement financial needs? Superannuation, life and disability insurance are sometimes absent from the thinking and personal financial issues embraced by self employed tradespersons and even owner builders. Several years ago these issues entered the thoughts of Eltham based mudbrick designer and builder Michael Young. Having acquired a very prominent site in the village of St Andrews on the outer northern edge of Melbourne, he has set in motion his own ‘self built mudbrick superannuation fund.’
Location, Location
Michael’s land comprising about 1500m2 is located at the junction of the Kangaroo Ground – St Andrews Road and the Heidelberg – Kinglake Roads. It is adjoined to the south by the St Andrews Hotel where a licensed establishment has been located since the 1860s. Importantly, directly across the road on a public reserve is the famed Saturday morning St Andrews Community Market.
Extremely popular for its offerings of alternative lifestyle products and services, homemade foods, fruit and vegetables, craft productions and collectables it has traded from this site for some 40 years, predating the popular trend to ‘farmer’s markets’ which have multiplied significantly in recent years.
The market attracts regular exhibitors, some of many years consecutive participation, so much so that there is a long waiting list to acquire an exhibitor’s site. It is such a feature that to park on a Saturday morning along the adjacent roads usually requires a walk of a kilometre or so to reach the market action.
Commercial mudbrick buildings
Michael had the idea that he could construct a complementary building in the St Andrews style in mudbrick and recycled timbers which could be let to a commercial tenant, possibly even an exhibitor with a connection to the market. And in the longer term it would be an effective superannuation investment. After the relevant building and planning permits were obtained, Michael has embarked on an owner-built project which, so far, has seen the construction of three buildings with a fourth, and the largest, at the frame up stage. Although the project has been underway for the past four years, he says it might take a few more before all the work is finally completed.
The first three completed structures are all load bearing mud brick buildings employing puddled mud bricks that Michael sourced from Mudlarks, a local professional brick maker. The timber for the framing is all recycled, often traditional hardwoods and some oregon he located from a number of sources, usually as pack lots.
Michael has also fabricated most of the windows, doors and other fit-out components from the recycled timber.
Building One
The first building was always designed to suit a retail purpose as it has high visibility to both local roads and fronts the Kangaroo Ground to St Andrews Road. It is a single level load bearing mud brick building 66m2 in area complete with a Colorbond roof. This was originally intended to be occupied by an alternative therapist but as the construction was completed this plan fell through.
Michael was then approached by a partnership of enterprising and experienced foodies with a view to opening a part weekday and weekend trading pizzeria and local food-sourced eatery and coffee shop. Michael says ‘I liked what they proposed, with a focus on low food miles so we proceeded to negotiate a suitable tenancy arrangement.’
The business, which opens on Thursday evenings through to Sunday late, trades under the distinctive name of ‘A Boy Named Sue.’
The business, it is fair to say, is booming and attracting patrons from a wide area and is always packed during the opening hours. It acts on Saturday mornings in particular as a great adjunct to the Market directly opposite and is a popular place for a coffee or meal. The demand has led to an expansion into the adjoining structure.
Love of Alternative Construction
Michael explains his interest in alternative construction by noting that in his late teenage years he came into the company of Margot and Alistair Knox nearby in Eltham.
‘I haunted their property at weekends and as there was always a building project in progress I gained experience in a wide range of building skills. I learned to pave, lay and make from natural materials at the hands of lovely people’.
He says he also developed a great affection for Montsalvat, the building complex also in Eltham constructed from the 1930s onwards in local and recycled materials. So he thinks it was ordained that he follow a career as a builder and specialist in the local mud brick idiom.
Ten years ago Michael was one of the founders of the Nillumbik Mudbrick Association, which now has an Australia wide membership of some 300 and actively advances the cause of owner builders. ‘The Association was formed in response to the introduction of energy ratings using software that failed to appreciate that the solidity of mud brick construction was not being recognised in the calculation. Now we see mud brick homes that regularly achieve a six star rating for energy efficiency and there is much wider appreciation of what the combination of mud and solar power can achieve’ he says.
Building Two
This building is a two-level load-bearing mud brick building, with each floor being 36m2 in floor plan. Notwithstanding its relatively small area, it has a kitchen and living area on the ground level and one bedroom and bathroom facilities on the first level. Its current use is to provide overflow space for the food business and is being developed to include a linking local kitchen garden in large planter boxes along the walkway between the two buildings.
Building Three
Michael built the next load-bearing mud brick construction with a view to it being used as a Bed & Breakfast. It also has two 36m2 levels with kitchen and bathroom services on the lower level with the living areas above. It is currently tenanted as a rental situation.
Building Four
The framing is already up after a cut was made into the falling land level (which slopes to the Hurstbridge to Kinglake Road) and is constructed along an east-west axis. It has two levels each designed to be of 100m2. The concept is to provide an apartment style upper level, with the ground level as open space for possible use as a craft gallery, artist’s studio or workshop, or even as a cellar door to suit a number of wineries, of which there are several in the area.
Michael has obviously developed a liking for the structure as the construction has got underway as he is considering moving into the building when completed; living upstairs and continuing his own mudbrick building and construction business from the warehouse space on the lower level.
The structure has a post and beam large sectioned timber frame with a second-hand fired brick retaining wall up against the areas at the rear of the building for soil moisture control purposes where the cut has been needed into the slope.
The final infill in the frame will be more puddled mud bricks and rendered in an appropriate earthy colour like the adjoining three structures. Michael is hoping to have the Colorbond roof fitted soon.
Services
The project site has limited services so the provision of a large rainwater harvesting and storage system has been needed along with an equally extensive water treatment and disposal system for the retail food business. In addition the tenants of Building One have constructed a large recycled brick wood fired pizza oven at the rear.
Michael was also keen to encompass the best energy efficiency for the projects so he installed a 5.2 kW solar panel assembly on the west facing roof of Building One.
Good investment
There are some important issues addressed here in creating a future investment income and capital investment from a complex of owner built structures.
At St Andrews, Michael has had the vision to take advantage of securing an excellent site located immediately opposite the vital and highly successful Community Market. He also recognised that the location is a central point in a local touring route that is increasingly popular with cyclists, motor bike riders and the tourists from the adjacent metropolitan area who travel to St Andrews ‘to see how the local hippies really live.’
He also had a local network of tradies that he could call upon when needed to help in the build. Sweat equity is not only an investment in creating effective and efficient living accommodation.
The process can also be employed to provide a long term investment.
Does your property, or does your local area have a demand for B&B or permanent rental accommodation? Perhaps you could be investing your personal resources and building skills in creating another structure additional to your home and capable of adding an income stream, or future capital value to your property.