Transforming Underperforming Farm Housing into Reliable Income

On a working farm in the Bay of Plenty, a small, ageing cottage had become increasingly difficult to maintain. The home no longer met Healthy Homes standards, and upgrading it would have required significant investment with limited long-term upside.

Rather than continue pouring money into an outdated building, the farmer chose a future-focused approach: the old cottage was demolished and replaced with a new 100m², three-bedroom home, designed for durability, energy efficiency, and low maintenance.

Total cost of the new build: $350,000

The home was quickly leased to a local contracting company for $600 per week, providing a secure rental income stream.

To further maximise the site, two existing cabins at the rear of the property were retained, generating $75 per week each, adding to the overall return.

This strategy turned previously underperforming land into a compliant, low-stress, income-generating asset.