5 pointers to help you get more from your asset
When you’re thinking about investing in residential property, you’ll no doubt have many questions – such as, “What makes a rental home more attractive to tenants?”
As Brisbane’s established investment home builders, GW Homes have long experience in building properties that are specifically designed to be rented.
We have a thorough understanding of what tenants look for in a rental property – and of how your new investment home can be designed to attract quality tenants and ensure consistent returns.
So before you sign a contract to buy an investment property, it pays to consider:
1) Has the home been built with an eye for detail?
As a property investor, you don’t want to find yourself using a hefty chunk of your rental income on maintenance and upkeep of your property.
That’s why it’s very important to make sure the home has been built to a high standard, using good craftsmanship and with an eye for detail.
Ensuring a good standard of building can be much easier when you build a new investment home, instead of buying an existing property that could be decades old.
2) Does the property have a ‘tenant friendly’ floorplan?
Something we’ve learned at GW Homes over our decades of building investment properties, is that tenants have a consistent shortlist of features they’ll look for in a rental home.
A common ‘shopping list’ for tenants will include four decent sized bedrooms, two living areas, two bathrooms, a good size backyard, and a double lockup garage.
It’s much easier to ensure your investment property meets this list when you decide to build a new home from scratch – rather than buying an older house that may not have been designed with tenants in mind.
3) Is the property ready to rent immediately?
If you choose to buy an existing property, it’s important to thoroughly check the condition of the home and ask yourself whether it’s ready to house tenants straight away.
While it can be tempting to buy a ‘fixer upper’ thinking that you’ll save money by renovating it yourself, it’s important to remember that while the property is being brought up to rentable condition, it won’t be bringing you in any income.
Alternatively, if you choose to build an investment property you can opt for a ‘turn-key package’ that comes complete with everything you need to attract good quality tenants.
These home packages include everything from an oven and stove, to a low maintenance garden and even a letterbox. Simply put, when your turn-key home is completed on Monday your tenants can move in on Tuesday. It can be a much easier, more straightforward way to get up and running and get your rental income flowing immediately.
4) Does the property feature “rental tough” fixtures & fittings?
To ensure good nett rental returns over the long term, it’s important to try and minimise your expenditure on repairs and maintenance.
To do this, you should make sure that your investment property features durable fittings and fixtures that are able to withstand the demands of day-to-day living. Again, this is much easier to accomplish when you build a new investment property rather than buying a pre-existing house.
For example, in our investment properties GW Homes uses extremely durable yet attractive nylon carpets that are ideal for tenants. We undertake extensive research & development to ensure that our fixtures and fittings are ‘rental fit for purpose’. All our fittings are made to Australian standards – not cheaper overseas versions – and our cabinetry is made right here in Brisbane by our long-term cabinet maker.
By investing in good quality fixtures, you can reduce your chances of having to make expensive rectifications over the life of your investment home.
5) Is the property in an attractive area for renters?
When you’re looking to attract a quality tenants, it makes sense to invest in property in an attractive suburb.
While of course you can buy an existing home in any suburb, your options for finding land to build on tend to be much more limited. A savvy investor can turn this situation to their advantage.
With land in the inner suburbs becoming scarce, the majority of new investment homes are being built in new estates.
These new suburbs are developed complete with brand new infrastructure, new schools, good employment opportunities, and many options for public transport. This excellent infrastructure helps to attract young families to newly developed areas, families who tend to make good long-term tenants.
Talk to us about building an investment home
If you’d like to know more about the advantages of building a new investment home over buying an existing property, call us today.
The GW Homes investment property team will be happy to share with you even more ideas for getting more from an investment home. We can even provide a free site inspection of your block of land to help you get started.
To find out more about building a Brisbane investment property, call GW Homes on 3393 1399 or fill out the contact form here.