Fit out spec for an IP build?

I am just finalising quotes/fit out on my IP build and was hoping to get a few thoughts on the appropriate (ie best return) level of spec for an IP. The property will be a 4x2 in Bayswater WA with a build cost of around $230k turnkey (+/- depending on the call I make on these items). Hopeful rental value around $500-$550pw. I am aiming for a 'slightly better than average' fit out and build. In terms of target demographic I am anticipating it will be either a mid-size family or multiple young professionals (I.e group of friends).

So the aspects I am tossing up are:

FLOORING:
I am thinking tile throughout apart from the bedrooms, which would have hard-wearing carpet (which I'm sure will divide opinions).

AIR CONDITIONING
I have been advised that a split system in the (large and open) living/dining/kitchen and fans to the bedrooms is the most standard option, however I am wondering if tenants will pay more for AC in the rooms (and if so should I duct the whole place or go split system in each room).

CEILING HEIGHT
The builders standard spec is 30C, but I feel going 31C adds value that will be there for the life of the dwelling.

Dishwasher?
I know I value on in a rental, but will ppl pay more for a place with one (and/or stay longer etc)?

BATHROOM BENCHTOPS
I am inclined to upgrade the post form laminate to essastone in the bathrooms, or is this excessive?

Thoughts on any of the above will be greatly appreciated.

Cheers guys!
 
CEILING HEIGHT
The builders standard spec is 30C, but I feel going 31C adds value that will be there for the life of the dwelling.

Dishwasher?
I know I value on in a rental, but will ppl pay more for a place with one (and/or stay longer etc)?

BATHROOM BENCHTOPS
I am inclined to upgrade the post form laminate to essastone in the bathrooms, or is this excessive?

I think these 3 are definitely excessive - still undecided about the others though.
 
I assume you plan for it to be a long term hold?

My opinion is pay for the things you can't change and get to level of cost vs return on the others. Ie benchtops and flooring etc are going to get abused and you will likely update in another 5-10 years anyway so get best bang for buck with durability. Obviously if you were selling then its a whole different market.

how about split in the living and one in master?

how about 31c in main areas like entrance,kitchen/ living etc and 30c in other areas?

Dishwasher i would expect to add appeal but not more rent.
And i would look to good quality appliances with warranty to prevent maintenance problems and costs.

Hope that helps

cheers
 
Flooring - I try to stick with chequerplate, extremely durable.
bench tops - standard spec
ceilings - you don't want the tenant to have an excuse not to change blown globes.
Dishwasher - just leave the opening, plumbing & power. If the tenant wants one they might buy it themselves.
Alarm system - more of an attraction.
Air conditioning - go for a few split systems and don't skimp on the insulation or sarking.
 
Our local PM has always said that best bang for buck is a carport- but that may be due to Canberra cold. If you don't have undercover car space at a minimum look into it.

LED lights may be worth considering for tenant appeal. Oyster lights can start at around $50 each.

In Canberra we are required to have energy efficient hot water. Heat exchange isn't too efficient when it gets really cold. We've gone solar- and there will be rebates.

We are required to have tank water. But it was quite useless in itself as it could only have been used to water a very small garden. For about $700 extra we have a pump which feeds into toilet and shower- one which only kicks in when there's enough water. But the. This is for a GF on our property and we are paying for water usage. They are things which, although they might no translate to higher rent, make our place a little better than what else is available in a market with increasing vacancy rates.
 
I assume you plan for it to be a long term hold?

My opinion is pay for the things you can't change and get to level of cost vs return on the others. Ie benchtops and flooring etc are going to get abused and you will likely update in another 5-10 years anyway so get best bang for buck with durability. Obviously if you were selling then its a whole different market.

how about split in the living and one in master?

how about 31c in main areas like entrance,kitchen/ living etc and 30c in other areas?

Dishwasher i would expect to add appeal but not more rent.
And i would look to good quality appliances with warranty to prevent maintenance problems and costs.

Hope that helps

cheers

Yes it is for a long-term hold. I agree on the 'pay for the things you won't have to replace' which to me means structural things like higher ceilings. Quite like the 30/31C split ceiling idea, I'll check this out with the builder.

Ok dishwasher is looking like it's out - I can always add it later if a tenant insists (and is willing to pay more for it).

Standard builder spec on the appliances is De Longhi, which I thought might be overcapitalising a bit for an IP, but yes there is always the point of quality, maintenance etc (not that I know Ho De Longhi performs in this respect).
 
Our local PM has always said that best bang for buck is a carport- but that may be due to Canberra cold. If you don't have undercover car space at a minimum look into it.

Carport - check. However at this stage I can't put a roller door on (as it interrupts sight lines required to get the DA approved).
 
Personally (or pursonally in your case) I like floating floor in living areas and, in our cold climate, carpets in bedrooms.
 
In my build I used wood-look vinyl flooring because it was cheap. If i was building again, for either IP or PPOR, I wouldnt use it as furniture leaves imprints in it and moving furniture tears it. I'd probably rather get tiles or whatever the next cheapest alternative is. Of course this depends on your target market as well though - upper areas will demand polished wood/bamboo.
 
i would give serious consideration to vinyl planks or tiles for the living areas, certainly wouldnt do wood if youre going to rent out.
 
If you don't think chequerplate is appropriate ;) , polished concrete might suit as it doesn't scratch as easily as timber or floating floors. This damage is almost always classed as wear and tear.
 
My spec for Westminster was
- split reverse air con to living
- 31c to living, 30 to rest (highly recommend this)
- dishwasher ($700 outlay for not having someone ding the tiles and recess in the kitchen with their own) and good depreciation on it
- alarm ( peace of mind to tenant and it is next to Balga)
- tiles to everywhere except bedrooms
- carpet is hard wearing but still nice (modern carpets are better now)
- overhead cupboards in kitchen
- outdoor sensor lights
-

Gwelup is higher with above plus
- ducted reverse cycle air con
- 900mm appliances
- high ceilings throughout
- cedar lined alfresco
- stone bench tops to kitchen, bathrooms and laundry

For bayswater I'd go somewhere in between ;) stone bench tops to kitchens are very hard wearing and actually very tenant proof but you need to see how much it costs.
There are garage doors which conform with visibility requirements that have mesh or panels which are see through if you are interested.
 
Westy -
Does 31c to some areas cost less than just doing 31c to all? Much difference in end value?

Did you have the builder do the other things on the list or did you have them done afterwards? I'm getting some quotes at the moment and builders seem quite expensive on those sorta things, so gotta weigh them up versus effort/reliability of tradies afterwards.
 
I think your spec level is fine. Pretty much would put that in almost all builds now, as your end vals will look better. Much better to build a property which continually values well for marginally higher initial costs. You can always spot the povbox house built as an IP.

Besides the valuations, the tenant anchor factor is always a strong one, you may be able to bleed them a little more dry too over the long term, as the comparable properties to rent will be inferior and not suit everyone's higher tastes these days.
 
Westy -
Does 31c to some areas cost less than just doing 31c to all? Much difference in end value?

Did you have the builder do the other things on the list or did you have them done afterwards? I'm getting some quotes at the moment and builders seem quite expensive on those sorta things, so gotta weigh them up versus effort/reliability of tradies afterwards.

The Westminster was the builders standard build for the area - he has his formula of spec and it's just that little step above to stand out but not be exorbitant. He designed the spec level for Gwelup for me too. I value his input in not over spec-ing and not under spec-ing.

My builder did everything - he is a one stop shop for people who are time poor and don't want to be bothered :) So yes there is a markup but if you just go with his standard dishwasher/alarm etc rather than being fussy then it's reasonable.

With the ceilings, yes it is cheaper but I can't say the end value of it - sometimes it's perception of being more expensive (ie I also have the nicer cornices in these areas) which means people are happier to part with their $$, sometimes it means a quicker sale/rental, sometimes people have an emotional response to it and like it more. All are non tangible so I can't say how much it's worth. I also use coffered ceilings in living or theatre - they are a small high end item which again helps it stand out and give a high spec feeling.
 
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