With a massive influx of investors entering the market recently, a lot of people are curious about becoming investors themselves and asking what they need to think about.
Building or renovating a home as an investment should be looked at differently than one for yourself to live in. If you are renting the property, materials used should be able to withstand a higher level of wear and tear.
Here’s some things to consider:
When selecting materials for the home, including roofing product, cladding and floor coverings, use cost effective, low-maintenance options wherever possible. Choose lighter colours to minimise heat absorption and create a softer colour scheme. They are also less likely to date and will appeal to a wide range of tastes.
Think about whether you are targeting singles, couples or families and how that should influence the home design. If you aren’t sure, either contact a knowledgeable real estate agent or select a flexible design, preferably with two toilets. Most tenants will require this. They will also look for plenty of storage space for vehicles and other personal items. Low-maintenance landscaping is best for both you and the tenant, so make sure it is easy for the property to look tidy at all times. Security features are also a consideration. Most people look for properties that offer security screens on the windows and doors. Also have fully fenced yards for both children and pets.
If a property has a swimming pool or is on a larger block, you may like to consider including the cost of the maintenance and servicing as part of the rent so you know it is being looked after properly.
When it comes to flooring, low-maintenance options such as tiles or vinyl are preferable over timber or carpet as they are easier to keep clean and show less wear. If you would prefer carpet in bedrooms, opt for a solution dyed nylon in a short to medium length pile.
In the kitchen, make sure you select reputable, middle-of-the-range appliances with good warranties and allow for plenty of bench and cupboard space. Avoid brightly coloured tiles or feature walls as they will date quickly.
Importantly, do your research on a quality builder who you can trust and know exactly what you are getting.