The excitement of buying a new property can be intoxicating. There is so much to look at, so many different decisions to make about how the house will look in the end. Sometimes though, one piece of the puzzle gets lost in all the excitement.
How does the house compare to what is already out there in the market?
It’s understandable of course. The main focus is normally on making decisions about how the property will make a profit. Sometimes that means cutting back or scaling down certain features.
This is all driven by price.
Unfortunately price isn’t the motivating factor when a prospective tenant looks at your property and compares it to something else. They don’t care what you paid; they care about what they get. If your property offers less than the other one down the street, guess where they will go? Logically then, if you don’t provide what a tenant wants, you reduce the number of tenants that could apply to rent your property. Your odds of making a profit from cash flow diminish quickly.
Buying for price comes with its own cost then. After all, wouldn’t a house that has better features be expected to generate more rent?
Therein lies the dilemma. On the one hand it’s difficult to build to a price and expect to compete with properties that are built with a high level of features. A house with a double garage will sell for a higher price than one with a single garage. A four bedroom house will sell for more than the 3 bedroom competitor. In a suburb full of houses with double garages, a carport won’t cut it. Following on, the conclusion is that the property will be less likely to sell at the same level as the others in the event you chose to. Price and rent are attached to each other and both are ruled by location.
So, given those basic ideas, it makes sense to build a house with as many standard features, or inclusions, as possible which should result in a property of a higher standard. The inclusions are the key to the finished product.
Don’t be fooled by the use of the term “turnkey” either, as this doesn’t guarantee that the property is of a high standard simply that the property can be lived in. Turnkey is defined as a home or property that is ready for occupation for its intended purpose, i.e. a home that is fully functional, needs no upgrading or repairs and is ready to move into. You need to look at the inclusions to determine the quality of the home before you make up your mind.
This is where 8Star Homes really shine.
We organize all the suppliers and each product within the build. We deal directly with each supplier and each designated builder. 8 Star Homes has a Quality Assurance system over and above what your average builder would supply. Our QA supervisor checks off each progress payment claim, at every stage, to make sure the product remains at a high standard. That’s thorough.
To give you peace of mind, we control the whole product piece from sale to property management.
Naturally, the running costs of a property are important for anyone that occupies it. We start with insulation batts in the ceiling and garage which are much greater than the minimum specified in the Building Code of Australia regulations. On top of that we have Solar Panels and double glazed windows so it’s plain to see this all adds up to an energy efficient home.
With this in mind 8 Star Homes achieves a highly efficient energy rating, usually higher than the average, providing tangible benefits for your tenant’s utility costs. This is not a comprehensive list of inclusions either; there are many more items you can ask us about.
Without doubt though, these features will mark your investment property from the rest and we are confident that 8Star Homes will surprise you with its large range of inclusions and features.
I encourage you to call and discuss your property requirements with us today.
To find our more don’t miss out on our 2017 Property Investor Update Event in a capital city near you this July and August. Register your interest here to secure your spot.