Not only do you want a property that will grow in value, you also want one that will provide a high rental return. Here are four features that can do just that.
DPN clients are well aware of the simple property methodology for finding a profitable investment. It's all about finding a growing area with a low entry point.
That's how you get a piece of real estate that will grow markedly in value. But what about if you want the rental return to see an increase, too? After all, a well-priced rental over the course of many years can provide you with a much bigger return than simply the profit from selling your property on.
Here are four property features you'll want to boost your rental yield.
1. Attractive kerb appeal
A rental with good street appeal is much more desirable to potential renters. Tenants will pay a premium just to live in an aesthetically pleasing property. An attractive front porch and beautiful, low-maintenance garden can achieve this with little hassle.
It's also something you can boost yourself at relatively little cost. According to Nursery and Garden Industry Australia, landscaping creates a return of more than dollar for each dollar invested. If you play your cards right, you could even use the vegetation as a form of low-cost cooling and insulation.
Granny flats are already popular among those hoping to boost rental return. According to building firm Granny Flats Sydney, 69 per cent of people have them built for investment purposes. Whether you purchase a home that already has a granny flat, or install one after buying the house, you're creating a dual-income property - receiving an added revenue stream for essentially the same cost of maintaining the property.
3. A garage or carport
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The Real Estate Institute of Victoria recently quantified the demand for parking space. According to its findings, a one-bedroom apartment with a car park was worth over $100,000 more than an apartment without it.
While this is only referring to apartments, and is to do with the value of the home rather than rental return, it nonetheless illustrates that house hunters put parking high up their priorities lists. In a rental property, extra space for parking means added convenience for a flat with a number of tenants, as well as added vehicle security, something renters are likely to pay more for.
4. The right number of rooms
No tenant wants to be fighting over the bathroom in the morning. As such, finding a property where the number of bedrooms complements the living spaces and bathrooms is key to ensuring a high rental return.
For instance, a home with five bedrooms would ideally have two living areas and two bathrooms. This is not only more convenient, but it also ensures the flat won't feel overcrowded, and that tenants will retain a sense of privacy.