There are many things to consider when it comes to building an investment property. From finding the right block size to knowing where to splurge on upgrades, Metricon Regional West manager Simon Taylor says it’s often the small details that can make the biggest difference.  These are his top tips for maximising returns.

Simon’s top tips for adopting an investor’s mindset


DON’T OVERCAPITALISE

It might seem obvious, but overcapitalising is one of the biggest mistakes people make when it comes to investment properties. “Building a smaller home on a smaller block minimises risk,” Simon says.  “If you don’t have the budget to go big, choose a package price at the lower end so that you can build within your means. As well as reducing your risk, being able to sell at a lower price point also exposes you to more of the market.”

FIRST IMPRESSIONS COUNT

“One thing that is always important to consider is putting on a nicer façade, which can be an additional cost,” Simon says. “You want to separate your home from others on the market, and that means making sure it has street appeal.”
If you’re planning on selling, he also recommends getting the home staged for sale so that you can present it in the best possible way.

SIZE MATTERS

For investment properties, ideally you want to look for land that will enable you to build a home with a minimum of three to four bedrooms. “If you’re looking to rent out the property, a minimum four is generally preferred,” he says. “Internally, if the block size allows, aim to provide at least two living areas. If the home is on the smaller size, try to create an illusion of space by adding higher ceilings and larger windows.

DON’T OVERLOOK LANDSCAPING

I can’t stress how important it is to do basic landscaping. Again, this not only sets your home apart, but also ensures you appeal to multiple demographics. Investors looking to rent the property out want something that is ready to go so that they can lease it straight away; while families, downsizers and retirees are generally looking for something low-maintenance.  

MAKE IT A BLANK CANVAS

You generally want to keep the colour palette reasonably neutral. “It’s best to keep it as simple as possible so that it appeals to widest range of people,” Simon says.  

KITCHENS AND BATHROOMS SELL HOUSES

There are a couple of things that can represent the home well so if you have any extra room in the budget, kitchens and bathrooms are your best places to spend it. “Upgrade toilets or taps, add ceiling to floor tiles and always try and splurge on stone benchtops and counters if you can,” he advises. “While it won’t be important to everyone, you are always going to get people who want stone.”

KEEP AN EYE ON THE MARKET

What you stand to make on an investment property is heavily influenced by market rates. Look at the current real estate market and, if you’re able to build something, make sure there is a difference between what the finished product will cost you to build and what it is likely to sell for.  If the return isn’t going to be worth the spend, then look at reducing your budget.

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