When it comes to seeking advice on building an investment, even if you’re just in the ‘homework phase’, asking yourselves “do we or don’t we?”, who else would be better to ask than someone with decades of experience in residential finance, property sales and an accomplished house flipper with plenty of passion for the industry and knowledge worth sharing? Thankfully, we know someone who ticks all of these boxes (and more!!). Our Agent of choice every single time, Janelle Stratford-Evans graciously gave up her time to contribute her expert knowledge and advice on the current property market relating specifically to those looking to build an investment property.
What is the current market doing?
With interest rates at an all time low, we are starting to see investors return to the market. Difficult bank lending guidelines in 2019 led to a downturn in investor confidence, however, we are slowly starting to see this return. Investors can see the benefits of buying a new home with low maintenance ownership + protection of builder’s warranty versus older established homes.
What trends are you seeing in terms of what buyers are looking for in a new home?
Buyers are looking for good quality homes, with no / minimal works needed and are happy to wait until a suitable homes comes up for sale. Buyers who are looking for a property now, want it to tick a lot of their “boxes”, as they have no plans of selling in the foreseeable future, which will continue to add to the limited number of properties for sale going forward
What areas are you seeing the most growth/interest from buyers?
Buyers still desire locations that are family friendly, with good schools, good services and equally good access to transport. Buyers are also looking for larger blocks of land where available, as they are spending much more time at home in the current climate and appreciate space and privacy.
What is your opinion on building to rent, and/or building to sell? Is there one option that is more favourable than the other?
Ah, to hold or to sell …. the age old question …. different people have different opinions on this. If you are going to buy / build and hold, be prepared to have a slush fund for maintenance – too many times we see people hold off on doing repairs until it is either time to sell OR when the tenant has a major issue with the property … and the bill can be a lot more than you bargained for. Be honest with yourself, if you are not good at maintenance, considering selling / building again when the property is 5 years old and you still have a year of builders warranty remaining.
What tips/advice do you have for those considering stepping into the world of investor builders?
My advise is to seek out a block of land that offers a unique feature for example: good location close to everything, one that can give side access, or even an unusual shape that gives a good size back yard – think like a tenant when it comes to the features they will pay a premium rental for. Then find a builder with a good “standard” spec list so that you are not going to be surprised by the “extras” such as; does the price include a H class slab, is everything included in the price or will you need to add extras like landscaping, render, flooring and window coverings, to name just a few.
What should be considered when looking into the latest government grants/incentives following COVID-19?
My advice is to take advantage of every dollar you can get – the government is putting these incentives in place to encourage the construction industry to flourish so go for it !!! $25,000 is a lot of upgrades that you didn’t have before.
What research/homework should we be doing before commencing a new project?
Seek out recommendations, get a couple quotes and most importantly, compare apples with apples – you need to know the price you are being quoted includes everything you need – once you sign the contract, there is no going back, so take the time to research in advance to avoid nasty surprises at the end.
If you have more burning questions and are considering your next build project we are always happy to talk with you. We are just a phone call or email away and all contact details can be located on our website. If you wish to contact Janelle for further consultation, you can reach her via email at janelle@aquaproperties.com.au.