best value adding projects

Hi everybody

I've been reading the forums for a while now, but this is my first post/question...

I currently live in my three bedroom house in Melton, but in a year or two I hope to move out and turn it into a rental. The house is pretty basic, no-frills type property, and looking around my street I think it's definitely on the lower scale of things. It's not falling apart or anything, and bathroom and kitchen, though not fancy, are pretty tidy and functional.

I want to do some improvements over this year, on my tiny budget. So far, things that have been suggested to me are

Building a carport
Building a pergola/outside area
Installing ducted heating
Istalling ducted cooling (currently just has a split system in lounge)

What, in your experience would add value to a rental the most of the above things? Or are they not necessary? Anything else?

Thanks in advance for any responses
 
I've never heard of Melton, but I'd guess a split system airconditioner to be sufficient... is it reverse cycle (i.e. a heater too)?

The carport on the other hand is a good idea, as they are relatively cheap for how useful they are (to tenants).
 
If you are looking to add value from a rental perspective, the 3 main things I have found tenants look for in a property apart from its location is as follows -

1/ Security - security screens/doors/alarm for themselves, belongings & parking for their vehicle/s.
2/ Spaciousness - Bright & open design, not cluttered. Preference for 3 bed x 2 bathroom.
3/ Comfort - Cooling in summer and heating in winter.

Hope this helps.
 
4/ Cleanliness. If necesary. paint the walls and steamclean the carpets.

I wouldn't worry about the ducted cooling - you've already got reverse cycle and seriously, for the number of really hot days we get here, the tenant can buy their own portable A/C if the reverse cycle doesn't cut it.
 
I've never heard of Melton, but I'd guess a split system airconditioner to be sufficient... is it reverse cycle (i.e. a heater too)?

thanks for that. Yes, it is reverse cycle.

1/ Security - security screens/doors/alarm for themselves, belongings & parking for their vehicle/s.
2/ Spaciousness - Bright & open design, not cluttered. Preference for 3 bed x 2 bathroom.
3/ Comfort - Cooling in summer and heating in winter.

All makes sense. Perhaps installing dead locks? - I remember when I was renting, insurance company always asked if the house had them for contents insurance.

But from both replies, perhaps a carport might be my next step
 
I wouldn't worry about the ducted cooling - you've already got reverse cycle and seriously, for the number of really hot days we get here, the tenant can buy their own portable A/C if the reverse cycle doesn't cut it.

I think I might scrap the ducted cooling off the menu. Is ducted heating still a good idea though? There is a reverse unit in the main lounge/kitchen area and one of those tall wall gas heaters in the sitting room, but the bedrooms and bathroom get absolutely freezing in winter.
 
I think I might scrap the ducted cooling off the menu. Is ducted heating still a good idea though? There is a reverse unit in the main lounge/kitchen area and one of those tall wall gas heaters in the sitting room, but the bedrooms and bathroom get absolutely freezing in winter.

You mentioned that the place is "pretty basic and no-frills". So I wouldn't be too fussed about the bedrooms - again, a little blow heater for the 30 minutes people generally spend before sleep will heat the room up enough. And they can get another doonah! :D Those gas wall heaters are usually pretty good at heating up a living area, which is likely where most of the time is spent.

I don't see the return on ducted heating. Would it cost you $2500 to install? Would you get $20 a week extra?
 
I don't see the return on ducted heating. Would it cost you $2500 to install? Would you get $20 a week extra?

If you spend $2500 on AC or anything else for that matter its only increasing your expenses by $2.88 p/w @ 6% borrowings. Im sure you could increase your rent by at least a min $10.00 p/w....and the borrowing is fully tax deductible plus the AC/item is depreciable.

None of your own money in the deal, increased your rent, increased your cash flow from tax advantages, and increased the property's attractiveness to tenants - a nice piece of value adding if you ask me! :)
 
Fine - I'll get back in my box! :D

If you can't borrow for it, it's not quite as attractive a deal. And as the OP is currently living there, a re-fi may not be an option.

KGB - you live there. What would YOU want done if you were renting? You may be able to answer your own question.
 
I would personally really appreciate it. And in case it becomes a share house, where people tend to spend bit more time in their bedrooms, the tenants might too.

Ok, thanks guys. Looks like I'm going for heating & carport. Good to have a plan!
 
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