PROPERTY PORTFOLIO
RECOGNISE POTENTIAL When Buying Styling trends of 2019
How To Optimise Your
Investment Property How You Can Add Value To Your Rental Properties With Technology
MEET THREE BIRDS RENOVATIONS
How would your life look if you had a profitable property? We’ll help you find the property you need, and show you how to maximise it. As property advisors and buyers agents, we focus on helping you buy property that really delivers.
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CONTENTS 7
Three Birds, One Reno School
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Optimise Your Investment: Renovate Or Develop
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Renovating Without Breaking The Bank With Anthony Maiolo
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How To Recognise Potential In An 16
Investment Property 18
BuildHer Collective: Empowering Women
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Attic Conversion Or Granny Flat Which Is Best For Your Property
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Interior Designers For Inspiration In 2019
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Add Value To Your Rental Properties
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With Technology 30
PROPERTY PORTFOLIO
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CONTRIBUTORS Bonnie, Lana & Erin Three Birds Renovations They’ve been best friends for almost 20 years and have seen each other through all the ups and downs of life: meeting and marrying their husbands, starting families (they now have nine beautiful kids between them) and juggling busy careers. But in 2014, they took a leap of faith together, quit their jobs and created Three Birds Renovations in pursuit of a more fulfilling life - working for themselves, doing something they loved, and with more family time. Within a few short months of starting out they had successfully bought, renovated and sold their first property. They now teach others how to do the same with their Reno School.
Rebeka Morgan & Kribashini Hannon - BuildHer Collective Rebeka Morgan and Kribashini Cannon created BuildHer Collective to empower women with the right tools to build the home of their dreams. With the right advice and support, building and renovating can be such a fun and rewarding experience! Building is not as hard as you think! BuildHer Collective have created an online course that guides you through every step along the journey, with the support of like-minded women.
Anthony Maiolo - Luxitecture Anthony is the Owner of Luxitecture - an experienced, Sydney based, building design practice committed to the creation of beautiful architecture. They are specialists in bespoke residential design, their work encompasses a wide variety of architecture ranging from heritage to contemporary design for new builds, renovations and restoration projects.
Do you own investment property in NSW and want more of a say in changes to tenancy rules and regulations, land tax and stamp duty? The Property Owners Association of NSW (POANSW) is the peak body representing the interests of private landlords and home owners. Visit www.poansw.com.au for updates on the issues impacting your property and a list of upcoming events.
Own property elsewhere? There’s a Property Owners’ Association in most Australian states and territories.
EDITOR IN
CHIEF Welcome to this edition of Property Portfolio Magazine. We’re excited to share this issue with you. The magazine was created to provide you with practical information, ideas and inspiration for your journey towards building a profitable property portfolio.
Also in this issue we include tips on how to recognise potential before you buy, pros and cons of attic conversions over granny flats, interior designer links for This edition is focused around inspiration and the latest ways to add optimising your property, and we’re very value through technology. pleased to have the team from Three Our goal with Property Portfolio Magazine Birds Renovations present their top is to support you in making smart choices tips for adding value to your home or and help you efficiently achieve financial investment property. independence and we hope you will Literally building on this theme are make it your go-to resource. insights from the amazing architect, Thanks for taking the time to read it. If you Anthony Maiolo, and the fabulous have questions or feedback, I would love founders of BuildHer Collective who to hear it so please make contact with me outline how to handle projects that at editor@propertyportfoliomagazine.com require structural additions.
Three One
Birds,
Reno School
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he Three Birds Renovations Instagram page is full of bright and airy spaces and gives an instant feel for flair and creativity of the fabulous women behind the company. Lana, Bonnie, and Erin have been friends for almost 20 years. Going through the ups and downs of life – meeting and marrying their husbands, starting families, and juggling their careers, they braved new territory in 2014, and created Three Birds Renovations. The trio took a giant leap of faith, quit their corporate jobs and set off in pursuit of a more fulfilling life together. Within a few short months, they had successfully bought, renovated, and sold their first property. Today, they have transformed nine houses and poured all of the knowledge they’d acquired into an online renovation course, The Reno School, so they can inspire and empower women to turn their renovating dreams into a reality. We spoke to Lana, co-founder and marketing director at Three Birds Renovations, about The Reno School and how you can use their tips to renovate for-profit.
What can we expect to learn in The Reno School? The Reno School is the ultimate online course for anyone planning a renovation. It teaches you everything we know about how to design, renovate, and style your home, whether you’re renovating to stay or sell, we’ve got you covered. We use our years of experience to fast-track your knowledge, build your confidence, and get you ready to reno.
What makes Reno School unique to other online courses? It’s the only online course which steps you through the process from beginning to end, from dreaming, to building to styling. We teach you how to create a vision for your renovation and how to turn that into reality, right down to the last cushion on your couch.
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And with the Reno School program, you won’t be on your own. Our private Facebook community is packed with amazing people, who are our Reno School students and graduates tackling their own projects. They’re there to give you real-time feedback on your project. We also jump on the group regularly to help answer your burning questions and to give advice.
What’s something unique about the program I can’t find on the website? We have Reno Schoolers all over the world! The course is 100% online which means you can truly do it anywhere in the world. It’s amazing how our Australian learnings have translated to projects in the US, France, Ireland, Dubai, Singapore, Mexico, Slovakia, and even the Bahamas.
Can someone looking to renovate for-profit benefit from Reno School? Whilst this isn’t a course specifically designed for people who want to renovate-for-profit it will prove hugely valuable for property flippers. So many of our principles apply to all types of renovations and were learnt by us during our first five renovations—which were all “renovate-for-profit” projects. For example, knowing how to find good quality trades and how to brief them to deliver what you want is a universal need. Knowing how to manage your budget is crucial in any renovation, and our budget template is the one we developed when we were flipping properties.
We’re heading out of winter now, so what are some must-do updates on a summer flip?
Get the garden ready – With summer on the way, your garden needs to get “bikini-ready.” Book a professional gardener or landscaper to come and do a tidy up and trim.
Update your alfresco area – Aussies love an outdoor lifestyle, so make sure there is an outside area that is easily accessible and furnished for comfort. A solid surface for furniture (it could be concrete, paving, or a deck) is an absolute must; and consider adding a pergola for aesthetics and you can include a roof cover to make it weather proof.
Outdoor umbrellas – If you don’t have an outdoor undercover area, invest in a couple of sturdy outdoor umbrellas to bring the summer vibes and save your skin.
New turf – Nothing says summer like backyard cricket, and a patch of green grass goes a long way to making people feel like summer has arrived. It’s also often on the “must have” list for families looking to rent or buy. Gas-strut window – We love this window! In our eyes it has totally usurped the bifold as the ultimate summer accessory. It opens up like a canteen window and works perfectly when coupled with a servery style breakfast bar. These windows originated in Queensland and it’s no wonder – they have “beautiful one day, perfect the next” written all over them.
We love our BBQs – Aussies love a good Barbie on the weekends, so consider adding a BBQ to the alfresco area to help potential tenants or owners picture themselves using the space.
threebirdsrenovations.com @threebirdsrenovations @threebirdsrenovations
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Optimise Your Investment
Renovate Or
Develop
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s you build your property portfolio, it’s important to review your properties regularly to ensure you’re optimising your investment. Whether you are just buying an investment property, or have existing tenanted properties, you will need to assess whether to invest in renovations, or just to maintain the properties with minimum spend. Renovations can be expensive, both in the cost of the actual work, and also the time it takes to renovate, during which you lose rental income. So before you decide to renovate, take time to work out whether the money spent will give you a return on investment, whether through an increased rental income, or a greater capital gain down the track.
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Remember your market
Utilise your team
Firstly remember that owning investment properties is different from owning your own home – the property does not have to be fitted out in the way that you would like to live. Instead, it should be in a condition that renters will want to live long term in, and the nicer it is, the more rent you can ask. Do your research to make sure you don’t overcapitalise – there will be a maximum rental value for every type of property in every location, no matter how appealing your property. If practical, attend some open homes in the area to check out your competition.
If your property has passed the point of ‘tired’ and needs major work to make it hospitable, a full renovation will allow you to bring it up to the required standard. A good property manager will be able to tell you exactly what is required, and to be able to recommend the appropriate trades people to do the work. Some can even manage the renovation for you (at a fee) which can be useful if you don’t live nearby. You can agree on a budget upfront and ask for regular updates.
Having a well presented property does attract a higher standard of tenant, and can mean your tenants stay for longer periods, which does bring benefits over the long term. Happy tenants are more likely to look after your property and treat it like their own.
Budget vs returns If your research tells you that you could charge more rent for a renovated property it’s time to work out how big a renovation job is involved. Of course extending a property by adding a bedroom or completely refitting a bathroom or kitchen will add value to renters and to your property’s capital value. But you may also be able to increase the rental value with much cheaper upgrades such as painting the property, new carpet or floors, new kitchen bench tops or replacing an old vanity unit or tap fittings within the bathroom. This will all depend on what condition the property is currently in – if it’s just a bit tired looking, some minor replacements and refreshes can make a big difference to your tenants, without a big expense.
General maintenance should be carried out often to ensure a safe and enjoyable home for your tenants, while reducing your risk of major repairs over time. Of course any major issue that causes health or safety risks to your tenants must be remedied immediately, but most renovations can wait for a time that is convenient, such as when tenants move out. Usually, you will have plenty of notice to be able to plan any renovations to take place as soon as the property becomes vacant, to ensure getting it back on the market as soon as possible. Ultimately it’s a numbers game – will the increase in rent (or capital gain) cover the cost over time? Remember to discuss with your tax accountant to ensure you include tax costs/ benefits in your calculations.
When choosing new fixtures and fittings, you don’t have to opt for top of the range. A low to mid price option is sufficient to keep tenants happy, and will still qualify for depreciation over time. Remember to choose neutral colours and styles that will widen the appeal to tenants, allowing them to create their own style with furniture and soft furnishings. propertyportfoliomagazine.com
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Renovating Without Breaking The Bank with Anthony Maiolo
Photo courtesy of www.luxitecture.com.au 12
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W
hen it comes to renovating, a key consideration must always be ‘bang for buck’. Unfortunately, whether renovating for function or aesthetics, costs can quickly skyrocket, so it pays to be organised, have a sound understanding of what’s involved and what you want to achieve from the project. Architect Anthony Maiolo has a wealth of experience in bespoke residential buildings, from modern to heritage, rebuilds and new homes; but when it comes to renovations, his advice is to focus on areas that will make the biggest impact and always maintain function over aesthetics.
helps; it’s tempting and easy to delete 80 per cent of the walls and reconfigure the house, but this escalates the cost greatly,” he said. “The best results I have seen are houses that require limited new construction and limited structural changes, as this allows our clients to spend more money on finishes and upgrades which is what the buyers are looking at.”
“Function, in my opinion, is the most important thing to get right. Whether it be the layout of the home, use of natural light, the design and flow of the spaces - getting this right is the most important aspect of a renovation. It doesn’t matter how nice the aesthetics are, the house just won’t be an enjoyable place to live if it doesn’t function properly,” he said. Anthony created Luxitecture in 2012 after beginning his career in commercial design, but quickly realised his passion was in residential. He now oversees a full design service for clients, from the initial meeting to discuss plans through to drawing up the design and managing the project. In addition to his work with Luxitecture, Anthony works with a team of contractors at Little Drafting Co. in Sydney to assist with project design and review plans for quality and accuracy. No two properties are the same, but when it comes to renovations, Anthony and his colleagues recommend staying within the constraints of the original building as much as possible in order to create the most costeffective transformation. Curb appeal, kitchen and bathrooms as well as outdoor entertaining areas are often on the renovator’s hit list for this reason.
Photo courtesy of www.luxitecture.com.au
“I have found limiting changes to the building footprint helps, this eliminates ground works for foundations and drainage. Working with the existing layout as much as possible also
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There is no shortage of inspiration for wouldbe renovators these days, with an abundance of apps and online sources exposing us all to many and varied ways of living, but the practicalities remain. Property Portfolio asked Anthony his top tips for property owners embarking on a renovation project:
Set a budget
Most firms have a good idea on what can be achieved for a certain budget, so they will be able to advise whether your ideas are achievable before you go any further.
Set the brief
What are you trying to achieve with the renovation? Define the things you want and separate them from what you need, so your architect can focus on the main objectives. The brief will evolve as the design progresses but having a clear goal from the outset will help you achieve a better result and can also reduce the overall cost.
Find someone with a portfolio of work similar to what you are after
Understand the services offered by your architect
Clearly define your involvement. You may be someone who is prepared to get largely involved in the project, including selecting materials and products, and assisting the builder and trades with questions and queries throughout the job. If that’s the case, you may require high level plans only, just enough for approvals and to get you started and this will be reflected in the architect’s price. On the other hand, you may be time poor, have limited knowledge in the industry and prefer someone else takes care of everything for you. In this case, the architect will prepare extremely detailed plans, schedules and specifications. They will visit the site regularly and administer the builder’s contract. The cost difference between these services are incomparable, so make sure you understand what you are paying for. To view Anthony’s work, visit www.luxitecture.com.au www.littledraftingco.com.au
For example, if you are looking to do a small renovation, look for someone who has plenty of experience with that. Similarly, if you want to make a big impact, look for companies that do large scale transformation projects. This is not because other companies do not have the skills to undertake your job, but that their business may not be set up for what you need. Someone who works in large scale renovations is not only going to have more knowledge and experience in that type of project, but more importantly, will also have engineers and builders who are best suited for that work. I can’t stress enough how important it is to have the right team of people working together on your project.
Photo courtesy of www.littledraftingco.com.au 14
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How To Recognise Potential In An Investment Property The less obvious factors that can add huge value to your property’s potential
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ou’re on the hunt looking for an investment property. You’ve set your budget, done all your research on recent sale prices and rental prices in your areas of interest, and you have your strategy mapped out. You may have even narrowed down the style of property to a house, duplex, townhouse or unit. So, with the fundamentals out of the way, how do you go about finding the property with the highest potential to add value? Whether you’re buying an investment property or your own home, Debra Beck-Mewing (Editor in chief of Property Portfolio) has these five top tips for recognising potential capital value. And it’s likely they are not what you were expecting. 16
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1 One of the best ways to add
value is through changes to the property which means the local planning
rules should be your first point of call when assessing your potential purchase. The planning rules will tell you what you can do, and more importantly, any restrictions. Don’t assume that you can’t extend or redesign apartments – some strata by-laws will allow some building work to bring units up to standard so read the contract and strata reports carefully to see what’s possible.
2 Look at the surrounding
properties and particularly their size.
What is being built currently in the area? This will help you to see what types of construction or renovations the local council has approved in the past, and also understand what may be built next to you that may affect your property.
3 While total square metres is
5 Look at the existing property
layout and design and establish how you could optimise the floorplan. An extension built onto the back of a house can easily add instant value by adding an extra bedroom or fixing a problematic layout. Look also at the roof if you’re considering building up. A pitched roof can pave the way for an easy attic conversion.
Using these tips to find a property can significantly improve its potential to create capital (and rental) value in the future. Even if you don’t have the budget to develop your property now, considering these factors before you buy will ensure you open up plenty of options to develop the property in the future. Having a property that has scope to develop beyond just a cosmetic refresh will add significant value to you if you choose to renovate, but also to a future buyer if you decide to sell it. craveproperty.com.au
important for your rental yield, the size
and shape of the property is just as important, and particularly the street frontage width. Debra notes “A rectangular shape is by far the best and gives you the best scope to optimise the property. If the property is an irregular shape it can be hard to find a workable floor plan. A property that gets narrow towards the back can still work well, so long as it is broad at the front.”
4 The slope of the property
is also an important factor, and not
just for the obvious advantages of sunlight or views. A house that slopes towards the street is generally going to give you better access to sewers and rainwater drains, which councils tend to locate under the street. Future development of your property may require access to underground pipework, which can be difficult to detect. Note some can be located towards the back of buildings, so it’s worth checking out via the diagrams in the contract, or on council websites. propertyportfoliomagazine.com
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BuildHer
Collective Empowering Women
Photo courtesy of www.buildhercollective.com.au
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ebeka Morgan and Kribashini Hannon found that women wanted to renovate their own homes, but didn’t know where to start, felt overwhelmed by the decisions they had to make, and couldn’t afford the top designers they love and follow online. One, a registered builder and the other a project manager, the duo decided to create a support platform to help women navigate the entire renovation process. They launched BuildHer Collective to serve as a resource for home renos, but also to empower women to make the choices and do the work, and see renovation as a fun, rewarding experience through a program of online courses, webinars, and workshops.
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We spoke with Rebeka Morgan, the resident builder behind BuildHer Collective about their program and what to expect from a renovation so you can be prepared this spring.
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How did BuildHer Collective come to fruition? We both have a passion for the building industry and have lived and breathed it for so many years now. We found that so many friends and family members were coming to us with problems and questions about their renovation or building project, and a few years back, during a holiday in Italy together, we discussed that there was definitely a market to help a broader community of women with the same issues. This is where the idea of BuildHer Collective was born.
What can we expect from the online courses? We’re an 11 module online course that covers all aspects of the building/renovation process. Whether you’re just wanting to make small cosmetic changes or start developing, our course has you covered. From planning, budgeting, design, dealing with tradies and timeliness, each module delves into a different aspect of the building and renovating process. We also offer consults, run webinars, workshops, and weekends away that are more intensive one on one time. BuildHer Collective is a nurturing family where women come together to learn about the building and renovating process and our online community post questions to fellow BuildHers about their projects. There is plenty of great responses to help guide you. We have fortnightly Q & A sessions, plus our “Buy Like a Builder” program, where you can purchase a lot of material for your build at trade prices. We want you to feel that you’re not alone during a process that can sometimes feel daunting. In addition to all of that, we’ve also just released our DevelopHers Inner Circle program. Launching 1st July. It’s all online and aimed at women who want to develop for profit and make a living out of it. We’ll be doing expert interviews, covering feasibility studies, and there will also be a monthly Q & A session.
Why are resources like this important for women to have access to today? The world of building/renovating can be very overwhelming. And let’s be honest, it’s still a very male dominated industry. The process can be daunting when you don’t know where to start. We believe it’s super important for women to be able to access information like our course because it gives them knowledge and empowers them with confidence to renovate or build their dream home. With knowledge comes power, so they say.
What common problems or struggles do you see women having during a building / renovation process? Understanding the process is the biggest problem—knowing the flow and what needs to happen (and when) so that everything can fall into line. Deciding how the project is going to be managed is also another big struggle. There are many different ways you can go these days; knowing your options from the outset is really important. We have a “choose your own adventure” philosophy where we allow you to focus on your strengths and build your team around that. People often think there is a one-size-fitsall way to build, but it’s simply not true.
What’s your favorite part about what you do? We love watching these women grow and build with confidence. The immense satisfaction derived from seeing women who once had no idea about building and renovating finishing and moving into their new dream home is immeasurable. Plus, we feel like we’ve grown a little family—watching all of our BuildHers interact and help each other, answer questions, and celebrate each other’s wins is heart-warming.
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Are there any specific challenges/ things to consider before you begin a renovation or building process? We always ask our BuildHers to visualise their desired outcome, and then we revisit that vision throughout the entire process. How do they want to live in the space? We tell them to remember it’s all being done for them and their families and the way they live, not for anyone else.
What does a renovation look like? Firstly, you need to understand this renovation/ build is a gift! It’s a gift you get to give your family, kids, friends, and yourself. This will be the place you spend your time, entertain, where your babies will learn to become adults. It’s okay to take some time and really plan it out so invest a lot of thought into it. Also, remember it’s much easier to change a line on the plan than it is to actually move a wall! The more you have organised from the beginning, the better. Understand the process and how you’ll be delivering from beginning to end.
What advice do you have on dealing with problems that arise during a reno? Not everything will go as planned; just because you’ve headed down one path doesn’t mean you can’t stop…and pivot. We teach our BuildHers to go back to their initial vision; doing this helps assess alternatives and find a solution that may even be a little better. Things will happen along the way. They always do. Your reaction to them is important, so understanding how you react under pressure and how others will perceive this is imperative. There are builders who are hard to work with and there are clients who are hard to work with, but if you approach everything as a team and run the right processes throughout your build, you will save a lot of time and angst.
For more information on the BuildHer Collective or for a consult, please visit the BuildHer Collective website: buildhercollective.com.au
Photo courtesy of www.buildhercollective.com.au
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Attic Conversion Or Granny Flat - Which Is Best For Your Property?
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hether you purchased your home as a renovation project or to serve as your forever home, your house is an investment. And, in the times of Airbnb and student housing, renovating your property for a rental return is becoming increasingly popular. What used to be a way to take care of ageing parents has turned into a potential investment opportunity. Converting an attic into a habitable space or building a granny flat are two home renovations which increase property value, rentable space, and overall investment. However, both projects involve a great deal of effort and time not to mention a hefty sum of money. So, is converting an attic or erecting a granny flat in the backyard worth the hassle? Will it really add value and make you money?
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The Specifics Accessory Dwelling Unit is the official term used by architects and city planners, but is synonymous with granny flats, in-law suites, backyard cottages, she sheds, etc. These units include a kitchen, bathroom, and living space as well as their own entrance. These units can take a few structural forms—the most common being: • Stand-alone unit • Garage conversion/over the garage build • Attic or basement conversion • Sectioning off part of the existing house Depending on where you live, restrictions and regulations on these units will vary – each jurisdiction will likely have its own ordinance passed, outlining the rules for these units. Local and state ordinances will include regulations on things like: • Parking • Maximum unit size • Lot coverage • Where it can be rented as a short-term rental • Whether owner occupancy is required And there may be even specific regulations regarding renovation details like head heights, windows, and ventilation. Granny flats would be considered a standalone unit and tend to be a fan-favorite among homeowners with excess space on their property. While you could fill this space with additional landscaping or play area for the kids, building a self-contained housing unit means extra livable space for children, ageing parents, or potential rental income from tenants. For those who don’t have extra property space to renovate on, building up instead of out may be an option. Attic conversions, while also a type of accessory dwelling unit, are built inside the main property, utilising unused roof space.
Making It Happen Unlike building additions and completing renovations in the main space of a home, completing an attic conversion or granny pod is relatively unobtrusive because clients can remain in their homes while the units are being built. But just because you’ve decided to make the addition doesn’t mean you can just jump right in. There’s a little red tape to clear before starting your build. The first thing you should do is check with the local council to be sure that building a granny flat or rental conversion will be permitted on your block or property. Councils in different regions have various requirements for residents wanting to build or renovate on their block of land. For example, in some areas of Queensland, it’s only permissible to rent out a granny flat if a family member will be living in it, and in some areas, housing density restrictions prohibit them entirely. Be sure to check with your local council before putting any down payments in place or signing any building contracts. The next step is to consider the financial aspects of building your granny flat or attic conversion. You can get in touch with local builders and specialists to get an estimate for your project. Granny pods will be more costly, because it’s a complete addition while attic conversions tend to be less expensive as they aren’t a freestanding building. It’s important to ensure your finances are in place from day one if you plan to embark on any kind of renovation project. Either type of addition won’t cost as much as building a home, so you may be able to finance it by accessing your equity or by increasing or refinancing your current loan. Alternatively, you may be able to take out a construction loan. Contacting a banker or financial consultant will be beneficial if this is a new process to you— they’ll be able to determine how much you can afford to spend and help get your budget in order.
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The Pros And Cons Of Attic Conversions Vs. Granny Flats
you want to be having a summer BBQ in the yard while the tenants are hanging by the pool? Probably not.
Someone could construct a granny flat in the yard or convert their attic space for a multitude of reasons. You could revamp the attic space so it becomes extra livable square footage for your family (think a bedroom or an additional recreation room), or you could put up an ageing parent while still granting them access to the main house. Likewise, you could construct a granny flat without amenities like a kitchen, because the inhabitant may have access to the main house – or the space may be used by you.
Unlike building your rental out, building up (attic conversion) is a desirable option but may come with less privacy. You could easily build out a self-sustaining unit (bathroom, kitchen, and living space) in an attic conversion, so you will retain some privacy from the main house. However, attic spaces generally don’t have their own point of entrance – meaning your tenants will likely have to enter through the entrance of the main home. If the whole property is comprised on rentals, you may be able to work out a hallway or shared entrance situation, but if you and your family are living in the main house, you will want to consider this.
The process for obtaining permits and making the decision to build granny flats or converting attic space is similar, but there are pros and cons of each to consider before committing to your project.
Cost and Requirements Both granny flats and attic conversions require obtaining permits from your local council that adhere to council and building codes – think attributes like windows, headspace, minimum (or maximum) square footage, rooflines, etc. – and will vary depending on your region. Also, both projects will require a fairly large investment; however, attic conversions tend to be less expensive.
Privacy If renting the space, a granny flat is ideal. Because it’s a free-standing structure, it will have its own entry access, kitchen, bathroom, and common spaces. However, you will have to determine and consider how much access to the main property the tenants will have. Do
Parking Something a lot of people don’t immediately consider when adding additional living space is parking for their new tenants. If you live on a corner lot and build a granny flat, not only will it have its own entrance but it’s likely the tenant’s parking spaces will be on another street than your own. However, if you are renting attic space, you should make sure you have taken parking into account. Lack of parking (or inclusion of it) will make an impact of potential rental value.
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Adding either a granny flat or attic conversion space could add 20-30% to the value of your property, not to mention the potential income from rentals.
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However, one of the main reasons for people constructing additional living space on their land is to maximize the property’s equity or to create a way to make passive income (renting it out to tenants).
Is It Worth The Investment? Like we said earlier, the addition may or may not be worth the investment – depending on your situation and intention. Adding either a granny flat or attic conversion space could add 20-30% to the value of your property, not to mention the potential income from rentals. However, when it comes to resale, that’s when the value of the investment gets tricky. If you have added a granny flat or converted your attic to rentable space and make the decision to sell your property later, the value of that conversion will depend on the future buyer.
Conclusion Adding a granny flat or converting the attic to livable space could potentially be a great investment for your property. It could increase the overall home value or be a way to generate additional income. However, there are things to consider before committing – things like cost, value of investment, and any rules and regulations that should be abided by. It’s smart to consult with building professionals, your local council, and potentially real estate agents to determine if the investment would in fact add value to your property and to make sure you are legally allowed to make the build.
For example, if you have a buyer interested in your property who is also interested in renting out space for passive income, great! You’ve just found someone who will consider your investment worth it. On the other hand, if your new buyer is intending the property to be a single-family property, they may not be too keen on a second kitchen in the attic or the fact there’s an apartment in the backyard. Just because the investment was worth it to you, doesn’t mean they care to pay for it…because they wouldn’t have made the investment in the first place.
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INTERIOR DESIGNERS For Inspiration In 2019
Habit Us Living
www.habitusliving.com
Directed by Colleen Black, Habit Us Living covers not only the basic styles of interior designs, but also, specific creators that can accomplish such feats. They believe creating a living space all comes down to the designer you choose, and their goal is to help customers find exactly what they want and who they need to turn their vision into reality.
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nventing or reinventing your home can be a challenge, particularly when you’re looking for the perfect designer to turn your vision into reality. But, there’s a few methods you can use to find the ideal designer to fulfil your dream. Outlined below is a selection of interior designers from across Australia. Check out their websites or Instagram pages for inspiration and motivation to bring your home into 2019 ... and beyond.
Vogue Living
www.vogue.com.au
Vogue isn’t just known as a fashion icon, but also a creative mastermind. They have put together a ‘Vogue Approved’ interior design list of inspiration for any homeowner. Their blog is filled with exceptional photography of modern, stylish and beautiful home interiors.
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Homes To Love
www.homestolove.com.au
Homes To Love are all about decoration. They create inspiration for pieces that are easy to make and design decorative pieces for anywhere in your home. Whether you’re looking to give your bedroom a makeover or renovate your entire home, Homes To Love will show you the highlights of some impressive Instagram accounts to give you daily inspiration and to keep up with the latest interior trends. WARNING! May cause serious house envy.
NSW Blainey North @blaineynorth
Blainey North is all about style and minimalism. Her work is posted on Instagram regularly and shows off her own personal style and her beautiful interior designs.
Alexander and Co @alexander_andco
Alexander and Co have the vision to bring together family alongside stylish living. Their vision is to challenge the beliefs of the built environment in every facet of their work, creating spaces for people who passionately believe in the value of their design landscape.
WA Malvina Stone @malvinastone
Malvina Stone introduces the mix of retro cement and timber, working together. They incorporate hard edges of cement walls and soft undertones of warm wooden floors beautifully.
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Kim Pearson
Birrelli Art
Kim Pearson explores the world of vintage and colour. Their style touches heavily on historical architecture, especially European and French. They deliver projects with magical atmospheres, award-winning rooms, beautiful homes and incredible public spaces.
Birrelli Art uses modern techniques and styles to bring a rural way of living. They play with natural materials, such as timber and stone, creating texture and warmth within a modern living space.
@kimpearsoninteriordesigner
VIC David Hicks Design @davidhicksdesign
David touches on the lavish side of interior design. He plays with lighting and colour to encourage warmth and luxury into his designs. If you love luxe details and textures, particularly marble and metallics, you will love David’s posts.
Fiona Lynch
@fionalynchoffice
Fiona brings traditional art into the world of design. She mixes colours to complement each other, into every room and uses shapes to convey emotion through her designs.
TAS Interia Studio @interia_studio
www.birrelli.com.au
QLD Anna Spiro @annaspiro
Anna Spiro is passionate about creating rooms that spark emotion and where people want to linger in. Anna incorporates pattern, colour, antiques and art into the rooms she creates. The end result is a curation of disparate objects brought together to create an interesting, layered and inspiring space. Her Instagram posts are inspiring and unique.
Arkhefield @arkefield
Arkhefield love art, and new design. Not only are their designs modern but also a mix of quirk and spunk for all ages to enjoy. With detailed modern settings and newly invented styles, Arkhefeild is always on top of their game.
Intera Studio is all about simplicity and nature. Their designs incorporate a mix of wood and minimalism. With simple textures and neutral tones, Inertia Studio bring together simplicity in every design.
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Add Value To Your Rental Properties With Technology
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n this tech-driven world, it’s hard to find an industry that hasn’t been completely disrupted by new technologies. When it comes to property management though, and the actual homes and units investors lease out, there is still plenty of room for change. While you might have been advised by property consultants or other people to steer clear of adding tech features to your properties due to costs and potential risks, the fact is, there are times when adding value through the latest gadgets can work in your favour.
Reasons to add tech One key benefit of installing smart-home products and other tech into your properties is that doing so enables you to charge higher rents and attract top tenants. If you want to rent out a high-end home or apartment to fussy buyers, it may be hard to get the maximum price if all the latest gadgets aren’t included. These types of items are expected. With younger generations accessing tech products everywhere they go, and now being a big part of the rental market, tech-inclusive properties should be further snapped up. Plus, if you want to rent your property as a short-term vacation option, via holiday let services or Airbnb and the like, having cool tech in your property should help with bookings. Many people want to go away to have a fun experience and to try new things. You can provide this by installing fun “toys” for people to use when staying in your property. Smart assistants such as Google Assistant, Siri and Alexa can be the central hub of a smart home and smart speakers with inbuilt smart assistants will become increasingly popular household gadgets. Setting up your property with this in mind could help improve occupancy rates A caveat, though: if your home is in a low socio-economic area and the people who want to rent in the suburbs can’t pay high prices anyway, the investment in tech items probably won’t be worth it. When deciding whether or not to add such pieces, always consider your target market. Another benefit of incorporating technology into your rentals is that many smart-home products lead to energy and water savings. If you have to pay for these utilities yourself, this can add up to more money in your pocket over time. If, however, your tenants pay for utilities, it’s still a plus as you can mention the efficiency of the home in rental advertisements and draw ideal tenants in.
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Options that your tenants will be happy to live with are smart lights, which turn on and off, dim, and some change colour via an app or smart assistant. For home security install smart cameras. Smart cameras connect to your Wi-Fi network and are controlled via app or voice. In the near future, Australians are likely to see more smart products that are already readily available overseas, such as thermostats, window blinds, and smart locks. There are also some interesting concepts in development such as smart mirrors and smart windows – see-through panes of glass that can turn into a touch screen, adjust their transparency, and (one day) display virtual views. Consider installing an energy monitor, too. This tech will check energy expenditure on a room-by-room basis and help you to pinpoint faulty wiring, appliances, or other problems before they worsen and cost your tenants a bomb. This all makes your property more appealing.
Potential downsides Of course, you must consider the potential downsides of tech installation, too. By educating yourself on possible risks, you’ll be better able to make the right decision for your specific needs. One of the key things to think about is whether you feel comfortable spending the money on buying and installing new gear. This exercise can be costly, so work out the numbers to see if the increase in price you can charge, plus any potential savings, will be enough to cover the costs involved. Work out how many months or years you want to see a return on investment in, and if the numbers don’t add up, either reduce your level of spending on tech or avoid it altogether. When running numbers, be sure to include costs for installation, maintenance, repairs, and the replacement of lost or damaged accessories (e.g. remotes).
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If your property is located in an area that doesn’t get decent internet service, your tenants may end up complaining about not being able to use the tech products you install. Bear this in mind when making your decision. Alternatively, you could pay to have an electrician install Ethernet wiring in the property or other fixtures and fittings to ensure smart-home products work reliably. If you’re planning to do some renovations on the property anyhow, this should be cost-effective. Keep in mind, too, that some people don’t actually want too many smart-tech devices in the home they rent because it raises privacy concerns for them. They may worry you’re somehow monitoring them through the gear, or that you will have control (via apps on smartphones and tablets, for example) over the technology. Plus, people sometimes don’t want to spend time learning how to use included tech. Be aware, then, that smart-home products in investment properties can turn some potential renters off for these reasons. Reduce this risk by providing tenants with detailed information about how systems work and what you have control over, and explain how their privacy is maintained. As our technology evolves and begins to integrate into our homes, it is worth, as a property investor, weighing up the option of including smart-home systems in your investments to help increase rentability in a saturated area or at a healthier weekly return. And is there a benefit in making everything smart? There are already smart spatulas and toothbrushes. In the coming years, almost everything will likely be connected, or at least try to be.
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