Welcome to our ALL ABOUT MONEY feature
which will give you education about creating wealth from a holistic point of view. From a Financial Planner, an Accountant, a Mortgage Broker, a Solicitor and a Builder. In this our first issue we will be introducing you to our contributors and letting you know what to look for yourself when using someone from their industry.
Building for investment versus residence – what’s the difference? There are a number of considerations to take into account when building a home for investment purposes. When living in your own home, you will care for it more so than a tenant would. Therefore when selecting the finishes for your investment, you should take a long term view on how each element of the home may suffer from wear and tear. For example, tiles in the living areas may be a better alternative to carpets as they won’t wear or become stained. A common mistake is building an investment property that strictly suits ‘your’ purposes. The ‘would I live in it?’ approach is not always the best rule of thumb. There are a number of different tenant types that many people don’t consider when constructing an investment home. The location of the investment property may also factor when determining the number of bedrooms, bathrooms, living areas and car spaces. For instance, when located near a university, plenty of bedrooms, bathrooms and off street car spaces are a good idea, catering for student share accommodation. Another example is an investment property in a family orientated location benefiting from a second living area, in lieu of a third bathroom. To achieve long term flexibility, designing a home that ticks boxes for both investors and owner occupiers is usually the best bet. When the time comes to sell and capitalise on your investment, not only will other investors be looking at the property, owner occupiers will also be in the mix. Increasing the number of buyers vying for your property is beneficial. A unit versus a house? Properties without a body corporate or common facilities, and incurring fees, can typically be more valuable on the market and having 100 per cent ownership of the land is very desirable in the long run.
Brad Thompson
Why build an investment property? (versus buying new)
Being able to select the house design and the fittings and fixtures is a critical part of investing in property. Being able to make minor tweaks to the house design can make a big difference in how desirable your house is to prospective tenants. If you purchase a property that is suited for the owner to live in, you may be ending up with an investment that costs a small fortune in frequent repairs. It is best to start from scratch to make sure that you are getting exactly what you need in an investment. How do I maximise my return on investment? A good way of maximising your return on investment with a new investment home is by designing and selecting the fixtures and finishes in conjunction with your builder. This will ensure that you are delivered a low maintenance investment that will require less maintenance costs in the long run – which will maximise your cashflow and enhance sale price of your asset. Which builder should I use? Not only should you choose a reputable builder that can deliver, you should also select a builder that is experienced in building investment homes. Selecting a builder that has a specialty in not only building investment homes, but is also adept at selecting the appropriate fixtures and fittings that will ensure the longevity of your investment is paramount to the overall success of your investment.
ABOUT THE AUTHOR
P. 1300 90 40 40 W. www.thompsonsustainablehomes.com.au
Brad Thompson is the Director of Thompson Sustainable Homes, which is a licensed builder based on the Sunshine Coast. Thompson Sustainable Homes delivers energy efficient homes that suit owner occupiers and investors alike.
Book your ticket here http://goo.gl/CNAUyL
Tickets are just $20 with all money being donated to a local charity For more information contact 07 5444 4456 or admin@bmmag.com.au
SCAN HERE TO BOOK YOUR SPOT
