Maximise your return from your Brisbane investment property
Key ways to yield a better investment return
Most property investors hate having to spend money on their Brisbane investment property. Unfortunately, it’s a necessary outlay. But when done well, you can improve your property’s yield. To maximise the return from your Brisbane investment property it’s wise to consider your target market and then determine a realistic budget for your improvements.
Before you buy a Brisbane investment property, consider this:
One of the crucial steps when buying an investment property is taking the time to consider if there are currently any improvements to the property that could attract a higher rental return. You should also be thinking about whether there will be any improvements needed in the future, both short and long term. Make sure to include the cost of these improvements in your budget. Doing so will help you understand how these works will impact your yield.
But what if I already own an investment property?
If you already own an investment property talking to an experienced property manager (like ours at Blocksidge Real Estate) about what tenants are looking for is a great way to build your knowledge of valuable improvements. Property managers can provide information on the type of tenants who are most likely going to be attracted to your properties and what these parties will expect. For example, certain groups of renters will expect that a dryer and/or dishwasher is included with the property. This form your target market and will help guide decisions about what improvement works will be valuable.
Always begin with the basics:
Property managers can help guide you on specific improvements that will be most valuable for your particular property. However, the below are three areas that are the “starter pack” of improvement works for Brisbane investment properties –
General tidy up: ensure all appliances, electrical outlets, plumbing, fixtures, and fittings are working and in good order (yes, that means fixing the sticking window and unreliable hot water system). These things are basic living needs and will not only boost your rental rate, but will hopefully improve the quality of the tenants applying for your property.
Freshen up: never underestimate a fresh coat of paint and clean floors. If your property looks and feels fresh you’re more likely to attract tenants. Cracking or flaking paint, or stained, ripped and thin carpet will not help you justify a high rent to tenants.
Tech savvy: all of the tech we carry around (think phone, laptop, tablet, smart watch, modems) require charging so its nice to have plenty of power points to charge them. Providing tenants with plenty of power points for their electronic appliances may be the difference between your property and the five others your prospective tenants see. Differentiating yourself is a great way to justify a higher rent.
If you can budget to work on the above three points you should be on the way to maximising the yield from your investment property. If you have any budget leftover you could also think about adding storage or modernising fittings like lights, door handles etc. Little touches can go a long way. Just remember that an investment property should be left as a canvas ready for someone to fill. Creating a desirable canvas can help increase your yield and get you on the way to your next Brisbane investment property.
Onproperty.com.au have an interesting article that puts dollar values for potential improvements to investment properties. What do you think? If you’ve done improvements in the past have you seen these sort of results? Comment below if you’d like to share.