Within the investment property industry, it’s a common story shared concerning the new property investor that thought he’d done the best research on his investment home only to discover the investment homes he’d been evaluating weren’t of comparable specifications and also the consequence was he lost out financially greatly. You will find four key features that the research must assess prior to taking the part of purchasing the next investment home.
All investors could be vulnerable to making poor decisions and suffering an economic loss, but this can be avoided simply by researching an investment markets and also the qualities you are looking at.
You don’t only have to take time to research (research ……. after which research more) every potential property, however, you must make sure that your scientific studies are evaluating ‘apples with apples’.
After you have made the decision around the appropriate estate for the investment, the most crucial details to check on would be the building specifications of each and every potential investment property.
Key Issue 1: Probably the most apparent issue you need to be familiar with are how big the block of land and also the square meter part of the investment house.
Advertising descriptions have to be read carefully and every aspect of the advertising carefully examined and understood to reduce confusion. Let’s take two real life examples and assess what they’re offering:
Bellevue Estate – $430,000
Location – Lot 21 Grandview Drive
This expertly designed 200 m2 home on the 720 m2 block within the Parklands Estate is a perfect home. By having an outstanding family area as well as an additional alfresco diner from the family area, this gives your loved ones plenty of living area.
Bellevue Estate – $400,000
Location – Lot 30 Petite Court
All hands up who would like an enormous 15 sq m outdoors diner. If you reside in the tropics, then who would like to live inside. This spacious 184 m2 home, positioned on a 460 m2 block, was created with this particular fantastic outdoors diner, this is actually the Number 1 tropical home for your loved ones.
Q1. Do These Descriptions Describe Exactly The Same Investment Home?
Q2. Will these two Investment Homes Provide The Same Rate of Return?
Q3. Will they retain the same Features?
Well in reviewing the 2 descriptions you need to do find they have common factors:
Both are within the same estate and also have four-bedrooms, a primary bed room with ensuite along with a double vehicle garage, however these qualities have completely different rental appeal and financial growth potential.
When evaluating both of these qualities and considering that certain is really a 200 sq m house on the 720 sq m block, costing $430,000 and yet another is really a 184 sq m house on the 460 sq m block, costing $400,000 – it is easy how to begin to see the REAL value!
Yes, it costs you $30,000 more but consider the extra land value and house space you are getting with HOUSE A when compared with HOUSE B!
With this particular info on board, it can be you to select your cost point and investment philosophy.
I pointed out earlier there have been Four Key Issues you need to research when selecting a good investment home and also the First Key Issue was to check out how big the home as well as the size of the house.
Although there are lots of issues that should be considered when selecting the best investment property, you will find three other key issue points of comparison that needs to be considered and they’re:
Key Issue 2: Measure the Nominal ceiling height – Be familiar with the ceiling heights – will they vary. There’s no industry standard and they may be from 2.5 to two.7 meters. Building the ceiling heights .2 of the meter greater increases the building costs also to the aesthetic and practical appeal of your dwelling to potential tenants.
Key Issue 3: Evaluate the TURNKEY inclusions – el born area varies so much from building company to building company. A few of these are:
o Number of Power Points
o Number of TV points
o TV antenna
o Number of Phone Points
o Venetian blinds to home windows
o Letter box
o Remote control garage doors
o Automated irrigation systems
o Security Screens on home windows & exterior doorways
o Turf & landscaping
o Sealed Driveways
Key Issue 4: Measure the Building & the caliber of the Accessories – The standard, guarantee and warranty vary greatly these days. It is important to wonder and make sure that you always receive documented proof of the guarantees and warranties supplied by your building company.
Having a home investment property, ‘added extras’ will mean a greater rental return but always ensure to calculate the need for the extras versus the rental return to your financial planning.