It was the most viewed property on commercialrealestate.com.au in 2022, but Elm Cottage remains on the market after a series of negotiations stalled and promising deals fell over.
The owners of the award-winning rural retreat have now shaved hundreds of thousands off the price, hoping to drum up fresh interest from potential tree-changers.
Located in Tumut, west of Canberra, the 24.7-hecare property is set over two titles. There are six separate homes: one architect-designed, four-bedroom main residence and five other cottages. All have views over rolling farmland hills and the Goobarragandra river, which runs through the property.
Listing agent Rachelle Barnett said she believed some investors and potential tree-changers from Sydney had underestimated, or completely missed, Elm Cottage in their property search.
“It’s a lack of awareness,” she said. “People will look to Katoomba or Jamberoo areas, within an hour of Sydney, but a lot don’t realise they can get bigger returns in the country.”
“They see it as a little country B&B that ticks along but aren’t aware that this is run at such a good commercial level.”
Barnett said the property offered returns of 9 per cent. “In a commercial sense, it is higher than your 6 per cent average.”
With forward bookings into next year, the rural retreat is currently operating at 70 per cent occupancy, turning over more than $500,000 a year.
And there’s room to grow. The wedding market hasn’t been tapped, while extra cottages could be added to the property.
“The owners are living in the biggest house on the property. If you didn’t need that, that house alone would return at least $600 a night.”
There is no shortage of awards on the walls and desks of David and Deb Sheldan, the owners of Elm Cottage. Most Unique Luxury Retreat. Best Pet-Friendly Accommodation. Excellence in Luxury Accommodation. The list goes on …
The Sheldans have built the retreat from the ground up over 16 years, and are selling the property to retire.
“We’re coming to the end of our careers,” David Sheldan said. “We need someone that’s got the ambition and passion for tourism to take it to the next level.”
When they bought the property, it was little more than a dustbowl with a rundown farm cottage. “But because it had two miles of river, I could see the potential,” he recalled.
The first two cottages on site were recycled. Elm Cottage officially opened to the public and was immediately a success. The accommodation offerings grew over the years and, eventually, a new four-bedroom main residence was built and the old farmer’s cottage was completely renovated. The latest cottage to be built is entirely accessible via wheelchair and includes extra bedrooms for carers.
All of the cottages are pet-friendly. “They’re perfectly welcome,” Sheldan said. “The only thing we ask is, if they chase the sheep, put them on a collar. And not on the beds, and not on the furniture.”
With an average stay of about five nights, Elm Cottages serve as a private holiday for couples and families, who often spend a week on the farm without leaving, Sheldan said.
“The beauty of it is, you’re not having to service your guests all the time. We started as a bed and breakfast but my wife and I ended up eating most of the breakfasts.”
It was also hard to keep up with stocking all of the milk alternatives, he joked.
Elm Cottage also hosts large groups, family reunions, sporting team holidays and club meet-ups.
“We opened in 2003 and we’ve had some guests coming since 2004. We’ve watched their kids grow up and go to university, and still come back for a holiday with mum and dad.”
The pudding club – a group of pudding enthusiasts – is booked in again this year. “Each family meets here, they have to make a pudding and they have a big festival,” Sheldan explained. “We’ve had interesting people come.”
The Sheldans have also invested heavily in sustainable options on the property. They planted 4000 native trees and shrubs, helping to regenerate riverbanks damaged by livestock and boost the threatened local grevillea species.
The property is also equipped with solar panels, Tesla battery storage and electric car charging stations.
Barnett said she expected Elm Cottage to sell to a cash buyer looking for a tree change, or someone with a healthy amount of equity behind them.
