Hi there,
I am currenlty getting plans developed for my LMR block in Brisbane. In total, I will develop 6 medium quality units on 800sqm. Having done some research, I wonder what property features have the highest return on investment. For example, I consider installing a 1.5kw solar PV system to reduce ongoing operating costs and contribute towards sustainability. i also intend to include a 10,000l rainwater tank to ensure I can water the plants all year around (this way they don't have to die if we ever get back to level 4/5 water restricitions).
When it comes to fixtures and fittings though, I wonder:
1) How much quality is needed for bathrooms and kitchens?
2) Should I opt for carpet / tiles or wooden floor?
3) Should I spend an additional $1,500 so that the 2nd bedroom has aircon too?
4) Does it pay of installing more expensive crime save screen doors?
5) Should I include nice, more expensive spot lights or go the cheap old way?The investment objective is to develop six units, sell 2 or 3 shortly after development and keep the remainder for income producing purposes.
Does anybody have ideas that can help? Once I get the final quote for the development, I will post it here so that people can see what a small, medium quality unit development costs in Brisbane. Preliminary quote is around $1.1m. Current sales price of medium quality 2bdr 2 bath units in that area is around $370k.
Thanks
Hi there,
From my experience when I have property specification questions I do the following …
1. I ask a number of local real estate sales agents what potential buyers are looking for as a bare essentials and what would be the nice to haves. A part of our business is that we renovate houses, so I get an agent to come out to inspect the property and get their opinions what what we need to remove, add or change to appeal to people in the area.
2. I then ask a number of local property managers what are the bare essential for renters and what are the nice to haves that will get me additional rent.
3. I then go to a number of similar stlye open homes in the area to gauge what the competition is providing the buying and renting public.
I saw a house a couple of years ago where the renovator had installed a large water tank, if she had done her local research she would have found that no one in the area has water tanks or would buy one. Therefore it was a waste of money.
She had also done a number of other things that were not in alignment with what is deemed normal in the area. What made it worse was she had paid too much for the property and was trying to sell it at close to 17% above the market and was wondering why it was still sitting on the market 9 months later.
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