Our Top 5 Tips on How to Build Investment Property Without the Hassle
Building an investment property is an exciting time, but it can be hard to know where to start. Here are some tips to get you inspired and help make the process as pain-free and enjoyable as possible.
1. Choose the right suburb or area to build your property
Choosing where to build an investment property isn’t necessarily the same as choosing where to build your new home. Many investors fall into the trap of building an investment property in an area where they would choose to settle, rather than an area that will generate the best return on their investment.
When choosing the site for your new build investment property consider the following factors:
- Growth potential — choose areas that are up-and-coming, rather than more expensive established suburbs.
- Amenities — choose areas which are close to new developments such as schools, hospitals, transport and shopping centres as these areas will be highly sought after by renters.
- Vacancy rates — analyse the vacancy rates in any suburb or area you’re considering for your new build investment property. An area with low vacancy rates means your new property will likely remain occupied by tenants instead of standing empty. You can find vacancy rate information on Corelogic and similar websites.
- Supply and demand — Assess the demand for your property in your prospective area. Is the area flooded with rental properties? How large is the potential tenant pool? It’s best to find a middle ground between oversupply and low demand.
Choosing land for your new build investment property is often the first step when building an investment property and it can be intimidating. Seek advice from real estate professionals and don’t be afraid to spend time researching areas before making a decision.
2. Consider your future tenant’s needs (not your own)
It can be very easy to choose a home design that fits your own tastes, but this isn’t always the best practice when building an investment property. You’re not building your dream home, you’re building someone else’s, so your new build investment property needs to appeal to the sort of tenants you expect to occupy your property. Consider the needs of your future tenants when deciding on the following aspects of your property:
- Property type — consider what type of property and property features that are most in demand in your area. Better yet, identify which property types are both scarce and highly sought after to maximise your chance of landing tenants
- Number of bedrooms — more rooms isn’t necessarily better. While a higher number of rooms may imply more people to pay rent it could also mean the home is rented out by a large family with the potential for higher levels of wear and tear to your property.
- Style — consider your target demographic and the kind of designs and styles they’re looking for. Familiarise yourself with the character of the area and the type of colour schemes, designs and materials that sought after properties have.
The age, marital status and life stage of your target tenants will all influence your property. How many cars will they drive? Will they need a big backyard? Will they want a low-maintenance property? These are the types of questions we need to ask when preparing to build investment properties.
3. Take advantage of turnkey packages
The idea of building a property from scratch and getting it ready for occupants can be intimidating. Between finding land, choosing a design and finishing the property with all the fittings and trimmings like door handles, carpets, lawns, fencing, window dressings — you get the picture —buying an existing property instead can seem tempting. But don’t be put off.
The solution is choosing a turnkey package. The term “turnkey” simply refers to the fact that the property will be complete and ready for the tenant to “turn the key” and start living in the property upon completion.
Turnkey properties are an easy, stress-free option that takes away the mental load of making 101 decisions about your investment property and means your property will be tenant ready much sooner.
4. Consider building a duplex for investment
Duplexes, also known as dual occupancies, are a single property which contains two separate units divided by a common wall. Each unit has its own entrance, yard and amenities.
Duplex’s offer a range of benefits for investors. While both units can be on a single title they can be subdivided into two separate titles (which most investors choose to do) which means they can be sold as individual units or kept and refinanced. Some investors also choose to live in one unit and rent out the second. Duplexes offer instant equity, great cash flow and high growth potential, making them highly popular with investors.
5. Take advantage of Complying Development Certificates (CDC) to get your new build investment property built faster
One of the most frustrating and time-consuming steps in building an investment property is seeking council approval. With a Complying Development Certificate (CDC), you can skip this step entirely.
A Complying Development Certificate is a fast-track approval process legislated by the NSW government. Because this legislation sits above local council rules CDC properties can be built without council or neighbour approval which means your investment property can be built much quicker than usual.
CDC development properties can be single occupancy houses, dual occupancy duplexes or multiple occupancy houses and terraces. Other examples of CDC developments include building granny flats, installing swimming pools and renovations.
Build your dream investment property, fast
At BuildFast we specialise in fast-tracked turnkey investment properties, and we have a catalogue of ready to build CDC properties at our disposal. We can also design your dream property or alter one of our existing designs to make your investment property come to life, fast. In fact, we can have your new property built and ready for occupancy within 9 months.
Get in touch with us today to find out how we can make building your investment property a breeze.
Want to build investment property without the hassle? Check out our CDC house designs and get inspired!