Ideal Rental Property

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From: Ctrader .


As I am looking at developing my own properties, I would like to ask all those Property Investors who have owned property over the years, if you were to build your own rental properties for long-term holding, what type, features, fixtures and fittings or methods of construction would you choose? For example, gas or electric hot water or cook-top, floor-coverings, safety switches, heating/cooling systems. What things have you learnt that reduce maintenance issues? Do you find that there are market specific requirements for properties in different cities like Melbourne, Sydney or Brisbane? I know that there is no one right or wrong answer but it would be interesting to see others ideas and opinions.

Ctrader
 
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Reply: 1
From: Michael G


Hi,

I once had dinner with Kevin Young of the Investors Club, and he thought of building the kitchen so the only fixture was the sink, everything else was built by furniture manufactures, this mean greater amount of fixtures in the depreciation schedule, better for investor.

Work out ways, to reduce costs and increase "precieved value" to renters. Patio/sun shades, BBQ, SPA?, who knows, a brick BBQ, where tenant pays for their own gas?, or have the BBQ connect to house gas line? have vent over BBQ funnel up past roof (smoke free BBQ?)

Increase paved area and reduce grass (easier garden maintence), I'm renting and I dont like mowing, and as an investor weeds reduce value of property, so maintenant reduce gardens would be good.

Also movement security light at door, so door isnt key scratched?

And a nice front door. little extra cost for high percieved value.

Michael G.
 
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Reply: 1.1
From: Nigel W


Michael

It would be enlightening for all of us if you could recall any other pearls of wisdom from Kevin Young.

Whilst I certainly wouldn't buy a property from his club, you've sure got to admire his entrepenuerial abilities!!!

I think we can all learn a great deal from studying successful people. Did he have any other comments that stuck in your mind?

thanks
N.
 
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Reply: 1.2
From: Jacque Parker


I have heard, from many renters over the years (mainly women) that gas is preferred for the kitchen. Dishwashers are optional but if your kitchen looks good (try stainless steel appliances) cut down your maintenance costs here by avoiding them where they're not necessarily needed. They cost a fortune to fix!! Cheers, Jacque :)
 
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Reply: 1.1.1
From: Michael G


Nigel,

Sorry, only had the one dinner with him :)

But it certainly makes you think in a new direction.

Personally, I would like to live in a nice house, that takes care of itself :) low maintenance gardens, easy clean carpets etc.

Maybe factor cleaning into rent and have it done once a month??

Michael G.
 
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Reply: 2
From: Peter Troiano


One great idea that has saved us a lot of money over the years is to stick with off white walls ( cheaper paint and everything goes with it) and commercial quality carpet which i've seen in some cases destroy proof. Also can be bought cheap from wholesalers and carpet auctions. shhhh don't tell too many people.
 
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Reply: 1.2.1
From: Jude H


Hi Ctrader,

This is a topic that Gee Cee Cee and (dare I say it) Michael Croft should jump on board. The experts in the field. However you may appreciate what a first timer has to offer.

I have just finished building to rent (tenant went in last Friday).

What I did:
Reverse cycle airconditioning; a big plus with the cooling says prop manager.

Security doors

Verticals

Backyard is 10m x 10m. Garden bed 2m all the way around fenceline with the rest of the yard coloured concrete. Plants no more than 2m high but will spread up to 2m.

Front yard plants and mulch.

Neutral colours throughout

Ensuite (house is only 13 sq but ens is expected these days)

Fence and gate for rear access (ummed and ahhed about this, but prop manager says rear yard access is a good thing so went with it).

Changed upright stove to underbench with cooktop. (Looks nicer and uprights make me think of rentals. Did not use S/S. These are harder to keep clean as fingermarks appear out of nowhere on them).

Garage not carport...more secure.

Gas to kitchen (I prefer in case of blackout)

Mixture of carpet and tiles.

Plain interior doors, not 4 panel.

Safety switches are compulsory as are electrical battery backup smoke detectors.

In hindsight....what a wonderful thing that is!

Would have longer between getting keys and having tenant move in. I had 9 days. Concreter should have been there on day 1 got there day 8.

Did the garden myself. Perhaps because I only had 1 day to do it I now think I wouldn't do it again.

Would put a dishwasher in.

Would build the next min 18sq.


Would I do it again? Absolutely. This house is already bank valued 18% more than I spent on it.

There were problems, all toward the end. Contractors not turning up (the concreter was not the only one). House hadn't even been pre wired for the phone yet it had been paid for at frame stage.

The house is new, attractive with low maintenance. A good buy and hold house. If you would be happy living there, chances are your tenant would be.


Jude

~ Never take no for an answer from someone not empowered to say yes ~
 
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Reply: 2.1
From: Stirling Reid


Put in tiles in high wear area, but also separate living and bedrooms by tiles. This way you can replace the living area carpet which tends to wear more quickly and leave the bedroom area as original. (As long as colour is roughly matched).
 
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Reply: 2.1.1
From: Michael Croft


Oh, after that intro Jude I just have to say something - sorry Colin.

Ctrader, it's a big ask to distill a seminar/book into a single post. I'd also like to know what your target market is eg. yuppies/dinks/active retirees in an inner city pad, or median income families in the burbs? As an example I'm embarking on a niche project of 4 single level free standing town houses for the (well heeled)mobility impaired/aged, and specs are very different as you might imagine. Another little project is a small inner city redevelopment based on a deep green sustainability philosophy and intergenerational living (adaptable housing), again for the well heeled and very different specs.

Anyway I opt for serviceability, duability, functionality and cost, the interrelationship of these is sometimes complex and I tend to look at a 5 to 7 year pay back.

If building from scratch for vin ordinaire folk here are some on my list;
slab on ground if possible, powder coated aluminium framed windows(boringly white lasts longer and goes with everything), timber framed 90 x 35 @ 450 centers, well insulated (cause I care and its the only chance you get), 13mm plaster board walls(less dings) usually a strong cream and one bold feature wall in the living area(suede effects is popular at the moment), craft wood jambs/skirt90mm/arch65mm/picture rails(no hooks in walls)all painted white, all internal doors are 820 and flush panel, door knobs a generic 'architectural' s/s model(different if doing a reno), series 2000 switches and dpo's and double the usual allowance (the faceplates come off go in the dishwasher), HMR melamine carcasses, blue pearl laminex bench tops and fusion maple doors with 2mm black pvc edges plus black kicks and sexy black chrome knobs sends them weak at the knees - for bathrooms,laundry and kitchen, carpet floor coverings I'm using the sisal look alikes right now, vinyl planks in the kitchen/laundry areas (tough as nails and looks like timber), I begrudingly tile the bathrooms(white wave with a feature or two on the walls and 100mm steel blues to the floor), splashbacks are glass or laminex, no plastic fittings in wet areas, clear glass semi frameless shower screens, c/bond roof/gutters/fascia/dps, painted bagged brickwork(you can always change the colour if fashions change) and so it goes.

Appliances and PC items are a book in themselves. Anyway for those who want more specific whats and whys or a translation of the above into plain English, come to the Freestylers meeting as TW tells me I am doing a talk or two on the subject and then my mate Colin can come along and heckle ;^)

Michael Croft
"The best parachute folders are those who jump themselves."
 
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Reply: 2.1.1.1
From: Robert Forward


Wow, I feel like building a house right now.

I'm looking forward to the Michael Croft Freestylers Tour when it happens.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2.1.2
From: Colin Mills


Not a bad post Mr Croft - for a change! You sound a lot like my ex architect. As much as I tried I could not find fault with any of your comments - no doubt because I have incorporated a lot of what you said in the past.
Now if you would just stop promoting wrapping as the best thing since sliced bread..........
 
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Reply: 2.1.2.1
From: The Wife


Michael Croft promotes wrapping???

since when?!??..

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2.1.2.2
From: Asy .


Hmmm, interesting comment,

Michael Croft promoting wrapping...

Can't remember that myself, however,
Michael G --- Michael C..

I suppose it is an easy mistake to make, for someone who doesn't bother to check facts because they are always right...

I think instead of a life, we should just buy Mr Mills a large jar of FIG JAM..

Or perhaps he has too much already...

asy
 
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Reply: 2.1.2.3
From: Yuch .


Michael Croft promoting wraps?????

Colin, I suggest you check the forum archive first before you make this comment.....

I personally had a heated debate with Michael Croft about wraps vs buy&hold, and as you know I am a wrapper....

Regards
yuchun
~ The secret to success is to start from scratch and keep on scratching. ~
 
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Reply: 2.1.2.3.1
From: Michael Croft


A wrapper I ain't.

I have researched wrapping and it's not for me, and at the risk of repeating myself; it is a business (or and investment in a financial instrument) that involves property, not property investment.

There are just too many damned Michaels on this forum ;^)

Michael Croft
 
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Reply: 2.1.2.4
From: Rick Gibson


Mr Mills,

My mother once told me a little rhyme, something about people in glass houses, I can't seem to remember the rest.

You must find it hard associating with us mere mortals, forever in your shadow,

actually, I don't know why you bother

Rick
 
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Reply: 2.1.2.4.1
From: Jude H


Michael Croft (that's with a C)

Are you leading a double life? Wrap and MC are not synonymous, at least that's what we thought. ;-)

Jude

~ Never take no for an answer from someone not empowered to say yes ~
 
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Reply: 2.1.2.4.1.1
From: Sergey Golovin


I'll go for double garage that's for sure.
It is just a substitute for shed I guess. Boys toys...

Concert in the garden - no thank you.
Instant water heating - yes.
Rain water tank – could be possibility to maybe yes.
Nice metal / aluminium fence - yes.
Nearly forgot - big mail box (must).
Numbers and letters on doors and walls (street address?) – numbers yes the rest of it optional.

Serge.
 
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Reply: 2.1.2.4.1.1.1
From: Ctrader .


Thanks to all who have responded so far. It is always interesting to discover what others have learnt along the way. I have had some thoughts confirmed and some new ones triggered. I agree with what Michael Croft has said about different products for different demographics. I am currently defining who my target market will be and that will fine tune the property. But even having said that there are obviously a number of considerations that relate to most properties. I am looking at larger than normal windows and possibly lifting the ceiling heights slightly although this does increase the cost, but I have always noticed the feeling of more space and light even when the floor area is no bigger. When I used to rent, if two properties were similar in features I would always go for, and be prepared to pay a premium for the one that had the better feel. My thoughts are if a tenant feels good in your property, aren't they more likely to stay longer.
 
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