Melbourne’s quirky beach box: a basic-free real estate gem

Melbourne, Australia (AP) – Iconic, brightly painted coastal sheds and surroundings MelbourneAustralia is a quirky property mix. It’s an absolute beachfront view, but lacks basic features like bedroom, bathroom, running water, and even power.

They lack homely comfort, but some can sell for more than the average Melbourne suburban home. And although the house comes with the security of the land title, the shed is built on a public beach.

Variously known as beach boxes, swimsuits and boat sheds, these basic structures have been a feature of the Victorian coastline along Port Phillip Bay and Western Port since the 19th century.

What they’re making for them these days as a financial investment is rarity. Some real estate agents say boxes in the right place are expected to double their value every 7-10 years.

John Randell doesn’t consider his swimsuit at Den Dis Street Beach, on Brighton’s upscale Melbourne suburbs, an investment.

“If you don’t want to sell it, what do you call it an investment?” Randell said.

“I think the market price is the market price. It encourages people who don’t use them now to sell, but they tend to stay within their families for generations, so they don’t take over too often,” he added.

Prices vary depending on the location

Prices and rules vary depending on where you surround the beach box. Buyers need to own a home in this area. And you cannot rent out a shed or use it for commercial purposes. Overnight camping is not permitted. Solar cells and electric generators are prohibited.

Rundell had a young family in 1992 when he purchased Bath Box No. 43 for Australian Dollars ($8,000) from the local council.

He continues to pay annual license fees and boxes. We consider this to be a council that doubles income from one address. He must also pay box public liability insurance coverage to match the value of $20 million ($13 million).

The box is a convenient space to hold beach toys, kayaks, stand-up paddle boards, barbecues and beach furniture.

Rundell’s family shared Christmas lunches in boxes and watched the New Year’s fireworks display during the summer in the Southern Hemisphere.

There is no electricity, but there are ice breasts to keep the drink cold. There are no plumbing but there are camping toilets with indoor privacy.

Rundell’s children grow up and their granddaughter is too young for the beach, and the box is mostly used by friends who borrow keys.

The box was a response to Victorian morality

Victoria probably deserves Australia’s last fortress against these anachronistic structures. The state was named Queen VictoriaHe was the British monarch who ruled most of the 19th century. The strict moral norms of Queen Victoria’s era contributed to the creation of bathing boxes in Melbourne in the 1860s.

The box was to preserve the humility of the bazaar when the law prohibited changing clothes and walking on the streets in swimsuits on the beach.

Similar beach structures of similar origins still survive in other parts of the world.

Australia does not have private beaches, so the beach shack was built on public land. The views have been mixed for a long time as to whether such private property is on public beaches.

All sheds have been removed from Australia’s coastline for decades, except for around 2,000 people near Melbourne.

The most expensive is in Portsea, a wealthy tourist town, just a 90-minute drive from Melbourne. Port Seaboxes are often sold for $1 million ($660,000). Last year there were records of $1.2 million ($800,000).

According to property research firm Cotality, the average price for a home in Melbourne was AU$803,194 ($530,378) in August.

A record of the box sold outside of Portsea was set at Mount Martha, an hour’s drive from Melbourne in April after a two-hour auction. South Beach Beach Box No. 26 sold for $1 million ($660,000). This was $350,000 ($230,000) higher than the expected price advertised by vendor real estate agent Alex Corradi.

Koradi said there are other boxes he calls the boat shed, Mount Martha has a covered deck that is sold for more. The owner cannot add a covered deck because the design and dimensions of the shed cannot be changed.

“I’m not really seeing them retreat. I think they’ll continue to rise in prices,” Koladi said, adding that the banks don’t share that confidence in their value as an investment. “The banks don’t lend to it, so all of these are cash buyers.”

Kate Bacos, a real estate investment advisor in Melbourne, has embraced that rarity provides long-term capital gains to beachbox investors. However, she is concerned about the possibility of short-term investments and has no financial benefits on ongoing spending.

“Buying a beach box is frankly an illogical purchase,” Bacos said.