\nIn today\u2019s show Shannon Davis<\/b>, from\u00a0Metropole Property Strategists, answers the question of whether all improvements add value and return to a property.
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\n <\/p>\nTranscript:<\/h4>\n
Kevin<\/b>:\u00a0 I often wonder \u2013 as you probably do, too \u2013 whether any kind of improvement can improve the value and return on your investment property. Is that the case? Let\u2019s find out. Shannon Davis is from Metropole Property Strategists and runs the Queensland operation.
\nShannon, would that be right? Any improvement is going to improve the value and return on an investment property?
\nShannon<\/b>:\u00a0 I don\u2019t think the case is that simple, Kevin. I think many renovators and people trying to add value get it wrong in many cases. I think the biggest crime probably is just over-capitalization.
\nKevin<\/b>:\u00a0 What are going to be the best bangs for buck in your opinion?
\nShannon<\/b>:\u00a0 If we\u2019re adding for rental yield, modernizing and adding modern conveniences to the property will add to your rent definitely \u2013 things like air conditioning, dishwashers, electric remote controls. All of those things will add yield to a comparison property that doesn\u2019t have that. I would also add built-in wardrobes to that list of improvements. But if you are setting your house up for renovating for sale, it\u2019s a different strategy again.
\nKevin<\/b>:\u00a0 Okay, let\u2019s look at that separately. Getting back to the point you made there about putting in dishwashers and so on, if I were to do that and say it were to breakdown, am I therefore required to replace that?
\nShannon<\/b>:\u00a0 Yes, it is. If the property has been advertised with that feature, then the onus is on the owner to replace that. Look at extended warranties if you can as the best value for money, because a lot of appliance repairmen actually charge a call-out fee and sometimes by the time the call-out fee and the part are added, it doesn\u2019t make sense for the investor to get it repaired.
\nKevin<\/b>:\u00a0 Is there a big difference between doing up a property to get the best return from a tenant in a house as compared to a unit? I guess they are two different types of things. In a house, you would expect to get a family, but in a unit, you\u2019d probably expect to get maybe a couple of students or a couple of singles.
\nShannon<\/b>:\u00a0 Yes. I think having that demographic knowledge is really important so that you are doing the right things for the right type of people who are likely to be in that property. For instance, in an apartment, maybe a gourmet kitchen isn\u2019t the best use of resources. People will be living smaller and busier, and maybe that\u2019s not what the demographic will be requiring. But in a house, if you had a kitchen without bench space and pantry space, then that would be a big drag on the property, whereas in an apartment, it wouldn\u2019t be so much.
\nKevin<\/b>:\u00a0 Some of the simple things like thinking about a family moving into a home that I might own that I want to rent out, if I do something like putting in fencing all around which will make it secure for the kids but also allow them to have a pet and then also making it a pet-friendly rental \u2013 does that make much of a difference?
\nShannon<\/b>:\u00a0 Yes, definitely. I think the biggest crime for a house is having it unfenced, because as you mentioned, the demographic is likely to have children and\/or pets, and both of those will give peace of mind if it\u2019s fully fenced. They are the most difficult properties to rent out when they\u2019re unfenced and unsecured.
\nKevin<\/b>:\u00a0 Another question for you, another one of my pet hates is rental properties with pools. What is your opinion of that?
\nShannon<\/b>:\u00a0 I think they\u2019re mostly avoidable. I think the top-end, the executive type rentals, most of those people do require a pool if it can be fully serviced, but if it\u2019s a medium or average type rental, I wouldn\u2019t be deciding on for the extra ongoing costs and I\u2019d be looking for investment properties without.
\nKevin<\/b>:\u00a0 The bottom line if you\u2019re going to be improving a property to give you a better return is think about the type of tenant who will be attracted to it and then what are the things that would turn them on.
\nShannon, I want to thank you for your time. Shannon Davis from Metropole Properties in Brisbane. Thanks, mate.
\nShannon<\/b>:\u00a0 No worries, Kevin. Any time.<\/p>\n","protected":false},"excerpt":{"rendered":"
In today\u2019s show Shannon Davis, from\u00a0Metropole Property Strategists, answers the question of whether all improvements add value and return to a property. Transcript: Kevin:\u00a0 I often wonder \u2013 as you probably do, too \u2013 whether any kind of improvement can improve the value…<\/p>\n","protected":false},"author":176692471,"featured_media":4407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-4404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\n