Backyard size??

[bozo]

What does everyone think about backyard size in a rental house? Obviously too much is probably a bad thing due to excess yard maintenance, but can you have too little also? What do others think about this??

[bundy1964]

Originally posted by bozo
What does everyone think about backyard size in a rental house? Obviously too much is probably a bad thing due to excess yard maintenance, but can you have too little also? What do others think about this??

As a PPOR no backyard is too big for me. As an IP it would depend on your target market......someone with a boat would pay a premium rent to have it stored out back as an example or a couple with cricket mad kids, backyard cricket may be better than a game in the passage :rolleyes: Too small and you cut into your land/buildings ratio which affects your capital gain.

bundy

[bozo]

Bundy,
What do you mean by land/building ratio exactly? I haven't heard of this affecting capital growth before.
:)

[bundy1964]

Simple answer is buildings depreciate and land apreciates.

A sugested rule of thumb is to have the land value at least 30% of the purchase.

bundy

[bozo]

Thanks Bundy :)
Will keep this in mind

Bozo

[just do it]

If you are looking for capital growth in Sydney the bigger the backyard the bigger the capital growth. There is also high demand for family homes that have large backyards ie room for kids to kick the football etc

[Jas]

Big backyards also give you the possibility of dual occ.

Jas

[bozo]

Jas,
I'm judging by most of the responses that a big backyard is a good thing, not a bad thing. Just wondering though if anyone has had trouble with tenants not wanting to maintain a big yard/corner block with lots of grass?? I guess if they did have a problem with this you could always include yard maintenance in the lease agreement? What do you think about this?

Bozo

[geoffw]

Bozo,

I have a DHA property, where the tenant was very keen to have looking semi reasonable- he had gone to great efforts to improve what was there. I had landscaping done, and it was looked after- until he was posted to sea, presumably leaving just his working wife to look after the yard. It has gone considerably downhill.

[Jas]

If you are really concerned about the backyard going downhill, negoiate a gardener with the tenants. They pay $5-10 more and you provide a gardner.

As far as backyard sizes go - it comes down to your plan. If dual occ, renting to families etc is part of where you want to go - go for it.

Jas

[Glenn]

Bozo,

If you propsective tenants baulk at the cost/hassle of maintaining the property, you could increase the rent by $10-20 per week and get a gardner/lawnmowing person in each week. This has 2 benefits:

1. Keeps the garden and lawns tidy
2. Increases your serviceability by 70% of the rental increase.

Glenn

[bozo]

2. Increases your serviceability by 70% of the rental increase.

Glenn,
How exactly does it do this?

Bozo

[Jas]

Banks generally take 70%-100% of the rental income as income.

He's saying if your rent increases (for whatever reason), the banks take the increase into account.

Jas