Ideal Residential Property
What makes up the Ideal Property
If Property is so good then why don’t Financial Planners recommend it?
Financial Planners are not permitted to receive a commission on the sale of real estate due to real estate licensing laws. These “planners” are therefore restricted to selling units in property trusts and/or shares.
It may be cynical to say, but unless they are going to receive some financial incentive to guide you to invest in property then they will only continue to offer what we consider to be higher risk, more unstable investments that most of us feel less familiar with.
So if you are going to find a good residential investment property where do you start;
• Proximity to an existing commercial & residential hub, within 7km
• Proximity & quality of schools, shopping & transport, within 7km or less
• Employment in the area
• Entertainment, parks, beaches & other features
• Prospects for growth for the area
• Economic outlook
• Socio-economic profile
• Housing availability; a future housing shortage could drive up prices
• Prospects of capital growth
• Traffic flow to the area, (is it impossible to turn right onto the main road leading out from a new estate that makes it undesirable)
• Not on a main road
• Preferable not to be next to laneways or backing onto reserves whereas being opposite or close to a reserve is an asset.
• Age of house. New or as new homes will give you a large depreciation claim. If you build a home you only pay stamp duty on the price of the land.
• Away from noise of main road or industry
• Access to driveways
• Views from the house
• Immediate neighbours
• A north / south alignment of the front & back elevations of the house will give it appeal and reduce the need for excessive heating & cooling & outside blinds.
• Modern layout with some open plan areas
• Ceilings higher than the standard 2.55m ( 8’ ) will make the property more highly prized
• Main bedroom with walk-in robe & ensuite bathroom
• Bathrooms with built-in vanity cupboards raised off the floor
• Other bedrooms to have built-in robes
• All robes to have built-in drawers, shelves & other compartments to facilitate storage & avoid damage to walls.
• Carpets in bedooms & any formal living room or study.
• Ceiling fans in bedrooms & some living areas
• Quality curtains or blinds. Complete light block-out is needed for bedrooms. ( cheap window treatments will reflect badly on any home )
• Hard floors in passages & open plan living areas & dining rooms. Quality light neutral porcelain tiles or similar are very popular.
• Wider passages give a feeling of space and luxury.
• Minimum of a split system air conditioner in the main living area. Ducted reverse cycle zoned air conditioner is most desirable.
• Large linen press cupboards
• Laundry with built-in cupboards.
• Kitchen with plenty of cupboard space & pantry cupboard & ample bench space for food preparation.
• Large fridge alcove, minimum of 1.2m wide. ( nothing will drive away a buyer or renter faster than a tiny alcove that will not fit their fridge)
• Under bench fan forced oven, separate gas cook top & efficient rangehood with lights & extractor fan vented into the roof cavity.
• Large doors from the open plan living area leading outside to an undercover area.
• Gable roof undercover area with lights & paving ( ceiling fan is nice but optional )
• Garage or ( carport not open to the weather side of the property ) with remote control roller doors & internal access into the house. Single garage for a 3 bedroom home or double for 4 bedroom home. ( Minimum size of for a single is 3m x 6m but 3.4m x 6.5m is far better and will set your property apart )
• Gas instantaneous hot water system with electronic ignition
• Generous tool shed with concrete floor which is weatherproof and ideal for storing furniture & valuables. ( Getting a tenants belongings out of the house & garage will reduce the wear & tear to the inside of the house and make you property one of the few with this simple but very useful facility )
There is so much more to know about the right way to invest in a property that will be highly sought after by tenants to command the highest rent and minimum vacancy and which can one day be an easy sell when the time comes.
You need to know how much to spend, the right builders and the right areas to build in that will give you the maximum rental return and projected capital increase. If done right and when combined with government incentives and tax claims it should only cost you $25 per week or less to own your own brand new investment property.
If you want to find out more then contact us to find out about our Property Workshops
Our conviction is that if you own property and you appoint Lin Andrews Real Estate to manage it you have the following benefits:-
• You may sack the manager if there is poor performance.
• You may sell your property.
• You may remortgage your property.
• You may paint it and upgrade to achieve a capital gain.
• You may subdivide or divide for multiple tenancies.
• You can see it and control what happens to if and feel that you own it unlike shares
If you would like to find out more about buying Residential Investment Properties then please ring us on (08) 8186 2777 or email us using the form below;