At the end of a quiet cul-de-sac in a former mining town in northeast Tasmania sits a tiny red house that looks as though it has been lifted from the Swedish countryside and dropped among the gums.
Known as ‘Little Falu’, the one-bedroom retreat at 3 Moore Street, Pioneer takes its name from Falun red - the distinctive pigment that has coloured Scandinavian cottages for centuries. On one acre of native bushland, it has become an unlikely success story: a fully remote accommodation business earning around $30,000 a year in profit.
Little Falu is a Swedish-designed tiny house on a quiet 1-acre bush block in northeast Tasmania. Picture: realestate.com.au/buy
Listed at $365,000, the property comes with more than just the tiny house. There are 165-plus five-star reviews, established booking systems, future reservations, operating procedures and a month of handover support designed to allow a buyer to step straight into the business.
The idea began almost accidentally.
In 2022, Maša Ofei and her husband - known for their writing on minimalism and sustainable living and for their plant-based recipe platform, Heartful Table - were searching Tasmania for affordable land when they discovered Pioneer, a town they had never visited before.
"We fell in love with the block of land and the vegetation and the trees and everything on it," she said.
A full kitchen, freestanding bath, and self-contained laundry make this a premium, guest-ready home. Picture: realestate.com.au/buy
From the outset, they intended to create a short-stay destination unlike the increasingly familiar catalogue of minimalist rentals.
Working with a local builder, they designed a custom tiny house complete with its characteristically pitched roof, heritage-style windows handcrafted in Hobart, pendant lights flown in from the UK and - despite the constraints of the footprint - a freestanding bathtub. Rare in a tiny house.
The result has struck a chord with guests.
"Swedish visitors have told us we've absolutely nailed it," Ofei said. "For someone who's never been to Sweden, that's probably the biggest compliment."
The owners have spent more than two years building, refining, and hosting at the property. Picture: realestate.com.au/buy
Little Falu opened in November 2023 and has operated steadily ever since. Occupancy averages around 66 per cent, with the property featured in publications including Country Style, Escape and Urban List.
Remarkably, Ofei manages the entire operation from the Huon Valley, around 4.5 hours away.
Guests self-check in, while local contractors handle cleaning and maintenance.
This financial year, the property is on track to generate between $65,000 and $70,000 in gross revenue, producing approximately $30,000 in net profit after operating costs, according to the vendors.
For investors rattled by proposed federal budget changes to negative gearing, the numbers are noteworthy. Based on the asking price, the current return equates to a yield approaching 8 per cent - a figure increasingly difficult to find in today's market.
This is a step up from 'glamping'. Picture: realestate.com.au/buy
There is also flexibility for future owners. The tiny house is designed to be movable, allowing a buyer to potentially construct a primary residence on the block while retaining the accommodation business as a secondary income stream.
One important caveat is financing.
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Because the tiny house is registered as a vehicle rather than a conventional dwelling, lenders typically assess value primarily against the land itself. Buyers may therefore need additional equity or cash beyond what a standard home loan would ordinarily provide.
The property arrives on the market at a time when short-stay accommodation operators are facing increasing scrutiny in some parts of Australia. Yet in rural northeast Tasmania, Ofei says the conversation feels distant. Her temporary occupancy permit was recently renewed for a further three years and she believes regional areas remain largely insulated from the pressures affecting major cities.
Buyers will be provided training and handover support designed to allow them to step straight into the business. Picture: realestate.com.au/buy
The location helps.
Pioneer sits about 15 minutes from Derby, Tasmania's internationally recognised mountain-biking destination, and around 45 minutes from St Helens, the nearest regional centre. Little Blue Lake and a network of walking trails, waterfalls and rivers are within easy reach. The floating sauna on Lake Derby has proven a particular draw. "It sort of completes the Scandinavian experience," Ofei says.
For Ofei, the appeal of Little Falu has never been solely financial. "So much of myself has gone into this," she said. It was a creative project as much as a commercial one - and now, as she and her husband prepare to move overseas, Little Falu is ready for its next chapter.
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