Hi All,
First time poster here and very new to property.
I'm 19 and about to start building my first house in SW Queensland. I plan to live here for 4 year and then move on, either renting it out or selling it.
I have received 2 quotes for 2 different builders which are around the same mark.
1st quote
18.25 square meters of living
4 bedrooms
Lounge
Family / Meals / Kitchen
Backyard is very very small; 3 metres to rear fence from home, 2.5 to side fence2nd quote
15 square metres of living
3 bedrooms + study
Lounge
Kitchen / Meals
Backyard is larger; 4 metres to rear of fence, 5 metres to side fenceKeeping in mind that the price for both options is the same, my question is this…
In terms of re-sale value in the future, is better to build a house with more living area and a very small yard or is it better to build a smaller house with a large yard? What is going to maximise the value of the property in the future?It really depends on your target market.
If your target market is renters, talk to a few local letting agents about things like this:
Does a "study" attract additional rent?
What is the differential in rental return between a 3br and a 4br house?
How important to the renters for a property like this to have a large yard? Do they prefer low maintenance, or large yard?
If they want a larger yard, why? Is it for the kids to play in, or is it for a dog? If it is the latter, how much extra rent per week will a tenant pay in order to have a house where dogs are permitted? What extras would you need to provide for this? eg higher fencing?You'd get your answer to most of these questions by looking on http://www.realestate.com.au/rent . Ultimately it is about the bottom dollar. If an extra bedroom attracts more rent per week than a family paying a bit extra for the allowance for a dog, then go the extra bedroom. Also factor in how long each type of tenant stays. If families with a dog stay 5 years, versus other types of families that move each year, you might opt for the longer style tenancy with a little less rent.
The resale market is another matter altogether. You're not trying to squeeze weekly income out of every square metre of the property. Moreso you're trying to appeal to the emotional homebuyer market… in which case a yard might be important. Again, look at http://www.realestate.com.au/buy to see what is on offer in the area, and what seems to sell quickly. Also ask local real estate agents about what local buyers want.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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