Which features add to the rental return of a new build?

Discussion in 'Property Management' started by Bris Jay, 4th Jul, 2017.

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  1. Bris Jay

    Bris Jay Well-Known Member

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    Location:
    Brisbane
    I'm in the final stages of doing up plans for two new houses that will be built in Margate, QLD. My current plans are extremely close in layout, design, quality, features, etc. to this house that is currently on the market in the area.

    56 Ewan Street Margate Qld 4019 - House for Sale #124980402 - realestate.com.au

    The agent on that house has been very helpful in letting me know what adds value to the sale price in the area but I'm a little bit stuck deciding what to upgrade that will balance rental return with overall resale down the track. These are some of the things that I can choose:
    • Ducted aircon - approx $9k
    • 2440mm, 2590mm or 2700mm ceilings. The house is two storey and the cost per level is:
      • $4k for 2.59m, $5k for 2.7m. I was thinking 2.7m downstairs and 2.59m upstairs?
    • Tiles to alfresco vs exposed aggregate - approx. $1000
    • Gas or electric stove & hot water (I'm thinking electric as there is no gas pipes so tenants need to get gas bottles delivered and also harder to clean the gas cooktop)? Both are similar price.
    • Very basic carpet at $35/m2 vs nice carpet at $45 - $50m/2
    • Tiles - 400 x 400 or 600 x 600
    • Double shower in ensuite - approx $1,000 extra
    • Do I put in fly screens to the sliding doors or to all windows?
    • Anything else that you can add?
    I've got two other properties at the moment and one was my former PPOR. I built it with all of the luxuries as I lived there for 8 years and now the rental return is good - approx 4.8% in a growing area. I am just trying to avoid over capitalization so opinions would be great!
     
  2. Propertunity

    Propertunity Well-Known Member

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    • Yes
      • High as you can afford is better
    • Yes
    • No gas bottles - go electric unless town gas available
    • Basic for a rental
    • Bigger is better
    • Won't get extra rent for it. Leave off.
    • Screens every where.
     
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  3. Bris Jay

    Bris Jay Well-Known Member

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    I have budgeted for everything on the list with the exception of fly screens. Tiles shouldn't make a huge difference as my builder allowed $55/m2 for both tiles and carpet so I'm removing them from his quote as I'll get them sorted outside of the purchase contract.

    The money that I save on carpets will pay for the fly screens.

    I think the overall cost difference as a percentage of the total property price will be minimal to keep all of these upgrades in the build but it's always nice to get a second opinion on what a renter will actually pay a bit extra for.
     
    Perthguy likes this.
  4. Hamish Blair

    Hamish Blair Well-Known Member

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    Sounds reasonable to me.
     
  5. Miss_D

    Miss_D Well-Known Member

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    Qld
    Security screens over fly screens. Also look at fans too, its qld and with the high prices of electricity people will run fans over air con if they have the option, on hot but im not melting days!
     
    Ed Barton likes this.
  6. Miss_D

    Miss_D Well-Known Member

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    Posts:
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    Location:
    Qld
    Dishwasher, also the hot water system, if it isnt electric and saves the tenant money on electricity bill you can get away with $5-10 more a week. Im saving $100 a quarter going from electric to solar hot water. Same with solar panels. Im charging $10 a week extra for a 4 kw system. It will be paid off in 8yrs, but even a 2 kw system and you could charge $10 a week for. Niceties to have for upsell and make your property more desirable.