A city dump nearby, poor school districts, major property damage – these are all glaring factors most investors know can torpedo a home's value.
Many other features, however, are much less obvious, but equally capable of lessening a home's re-sale value significantly.
What are they? Let's take a look at three things wise Gold Coast investors are sure to avoid when making a new addition to their property portfolio.
It might seem like a scene from a movie – you're going about your nightly routine changing into your pyjamas, look up and realise you're face-to-face with the next door neighbour.
This, unfortunately, can be a reality in homes that lack a certain degree of privacy. Prospective buyers and tenants alike want to feel comfortable and alone at home. That's why most investors are careful to select properties that offer a great deal of distance around them or other features that offer privacy.
Not everyone, however, realises how much goes into making a home truly private. Wise investors will also be careful to examine the following before buying a home:
While it might not seem like a big deal, even a backyard garden that neighbours can look into might be off-putting to those interested in buying or renting your investment property.
Curb appeal – it's the first thing people notice when viewing a property. It makes sense then that you'd want a big, lavish garden, right? Not necessarily.
This might seem counterintuitive, but it's important to keep in mind that buyers and tenants will also be thinking 'Do I have the time to maintain this garden?'. Your elaborate rose garden might be stunning in your eyes, but to someone else it could just look like a whole lot of work.
To avoid running into this issue, buy properties with a manageable about of yard work and maintenance required. Look for homes with perennial gardens that are simple to maintain, and straightforward, flat lawns that are easy to mow. After all, it will be up to you or your tenants to look after the property's exterior.
Over-the-top design plans and renovations can have a similar effect. While you may think that hot pink walls and a super modern kitchen look amazing, the average buyer or renter might not agree. That's why it's best to avoid homes that have been overcapitalised by their current owners.
To be on the safe side, look for properties that are interesting and unique, but not too built-up or over-decorated. Further, avoid super trendy renovations.There's no guarantee, for example, that an open plan bathroom will be desirable in two years.
What's the best way to ensure the next property you add to your portfolio is a sure thing? Reach out to the experts at Ray White Surfers Paradise. Our team of experienced property managers and real estate agents can help you find a home with high returns. Just give us a call or drop into one of our offices today.