I just brough a 2.5hp 40 l tank direct drive from supercheap for $100.

It will do basic shed duties fine and I have fitted a $70.00 regulator/water trap to it as well.

But it will not run the die grinder. You will need to look at a 2 or 3 cylinder belt drive compressor to run most die grinders or simular. These units start at $650 and go up. They usually start with a 50 litre tank.

I have a 60 litre twin piston belt drive unit I brought for the workshop at school and Its brilliant. Does everything you would ever want. But at 950.00 how much do you want to spend?