Guide to shipping container homes

• Given how expensive real estate has become in Australia shipping containers have become popular with home builders.
• Shipping containers repurposed as homes are an affordable way to create a small living space.
• Self builders can use shipping containers as building blocks or storage units.

Shipping container houses can be a great way to cut down on expenses or even earn an extra income. These types of homes can be an excellent cost-effective option for people looking to own their own tiny house or add an additional accommodation unit to their existing home.

Read on to find if a shipping container home is a suitable choice for you.

Why are shipping containers becoming popular In Australia?

Houses in Australia can be expensive, and many people are turning to alternative housing. Shipping container houses have become a popular way to live modestly and comfortably. They are quite cost-effective, so they are a good option for people starting out in the real estate market.

A growing number of people are choosing to live in shipping container homes as they provide a cheaper alternative to a 30-year mortgage. These houses are made out of recycled materials, making them eco-friendly and easy to build.

There’s a growing attraction to the minimalist lifestyle these homes offer. This type of tiny home allows people to live sustainably since there’s little room to accumulate unnecessary items.

What is a shipping container house?

A shipping container house is a housing structure made of new or refurbished shipping containers. These homes are available in 8 x 20ft and 8 x 40ft sizes and can be used for various purposes.

• As live-ins. Shipping containers are becoming a popular alternative housing structure. They are affordable, can reduce living expenses, and lead to a more sustainable, eco-friendly lifestyle.
• Airbnb. After construction and furnishing, renting out a shipping container home can be a great way to add an additional stream of income. Location and size can really increase the amount landlords are able to charge as well.
• Intergenerational living. Having multiple generations in one home can be uncomfortable if there is limited space. Building a shipping container home can help provide extra room to allow elderly parents or grandparents to live close by without crowding the existing home.
• Guesthouses. Building a shipping container home can make an excellent guest house. This can be a perfect way to provide a comfortable living space when friends and family stay for a visit.
• Office space. Constructing an at-home office out of refurbished shipping containers has become increasingly popular as it provides a large, comfortable workspace.

How much does it cost to build a shipping container house?

Costs of building shipping containers can range from $10,000 to $175,000. The price can vary based on materials used, the number of containers used, and the number of modifications to the shipping containers.

Depending on the size of the home you’re building, you may want multiple shipping containers, which would require more changes and add to the overall cost.

Shipping containers cost more to return than to buy, so companies have plenty of unused empty containers. New shipping containers can cost up to $13,000, while used ones can cost between $5,000 to $8,000.

Shipping container homes are cost-effective if you’re considering a small house but the more significant the project, the more expensive it gets.

How much can you earn if you rent it out as an Airbnb?

If you’re looking to use a shipping container home as an Airbnb, the profits made from renting will depend on the size, location, and amenities. If the home is located in a good area and has more amenities, you can charge more than a smaller home located in a less favourable area.

Shipping container home rentals can go for as much as $700 and as little as $50 a night in Australia. Average rental prices are around $150 to $250 a night, but it’s up to the person renting the unit to decide how much they think it’s worth. Bigger cities in Australia get many tourists yearly and can charge higher prices for their Airbnbs.

Considering the cost to build and furnish a shipping container home, it might take a while before you break even financially. Having a plan and a budget on how much you want to spend on building and how much you’re hoping to charge will help maximise future profits.

Council constraints and approval process

Like any other construction project, when building a shipping container home, you need the proper permits, and specific requirements have to be met for building approval. In most areas, you do not need a building permit if you’re using the shipping container home for 30 days or less.

Depending on your property’s planning zones, planning and building permits are typically required. It can be helpful to get professional advice from an architect or planning consultant on what the approval process will look like for you.

Pros and cons of shipping container homes

You should consider multiple factors before deciding to construct your own shipping container house. There are always negatives and positives to consider when planning a construction project.

We will go through the pros and cons you should think about before embarking on this endeavour.

How to finance a shipping container home build

Finding the best way to finance your shipping container home build is the first step in bringing your idea to life. It’s best to look into all available options to decide which fits your specific needs. Banks typically don’t finance tiny home builds, so you’ll have to find alternative ways to pay for your build. Here are a few ways to pay for your future projects.

• Personal Loan. Taking out a personal loan can provide you with the funds to finance your shipping container home while also providing competitive interest rates.
• Home equity loan. If you’re building a shipping container structure on the same property as your existing home, you can use the equity from your current home to take out an equity loan to finance the new build.
• Cash. Cash is the quickest, most straightforward way to finance a shipping container build. You need to ensure this decision is within your budget.

How to choose the right shipping container home builder or DIY

Depending on your needs, choosing the right builder or the correct method to build a shipping container home could ensure your home is durable for years to come.

As shipping container homes increase in popularity, more companies that provide pre-made homes are popping up.

It’s imperative that you do your research. Find out which companies can deliver to your area, what reviews they have, the types of homes they specialise in, and what labour costs are involved. This will help you decide who is the best builder to hire for your shipping container home.

If you plan to do it yourself, there are several vital steps to building a shipping container home.

1. Decide what size you want and whether you’re going to buy a used, refurbished, or new container.
2. Find the best company to buy from, and for an affordable price.
3. Get the container adequately inspected.
4. Obtain the proper permits that are required by law.
5. Test the container for chemical exposure before purchasing.
6. Decide on features and customisations.
7. Prepare your land.
8. Cut openings.
9. Install windows, doors, and framing.
10. Install electrical and plumbing.
11. Install insulation.
12. Have your new home inspected for final sign-off.

For more in-depth instructions on how to build a shipping container home, talk to structural experts and do independent research. As attractive as this home alternative is, doing your due diligence is still important.