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  1. #1

    Default Building house for investment purposes

    Hi all, would like to get your views on this. I'm planning to build a new 2 storey house for investment purposes, i.e. rent out after it's built. In this case, the main differentiating factor between a house built for new home owners vs. a house for rental, i reckon would be in the kitchen and bathrooms.

    Would you recommend
    1) spending a bit more on the finishes for these places (so that IF one day, you do sell the house, it can fetch a better price), or

    2) would you recommend just spending enough to get mediocre quality finishes for these places, since ultimately the house will be rented out and renters may not take care of the property.

    Please advise!

  2. #2

    Default

    Assuming Auckland, which suburb ?
    How much is the land costing?

  3. #3

    Default

    Panmure, the land is roughly 250k

  4. #4
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,422

    Default

    Owner-occupier builds have lots of emotional baggage. Rental ones don't.
    Durability and functionality take precedence in a rental build. Avoid things
    that need 'special' care and attention.

    I recall responding to my builder, when asked about some aspect of one
    particular finish item: what do you think is best and why, I asked? He told
    me. I then said: sounds great. Go ahead. He looked slightly bemused. Then
    I added: I don't care - I'm not going to be living here - do what's best from
    the perspective of durability and functionality in such cases.


    He thought for a moment, smiled and said: I think I'm going to enjoy this job.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  5. #5

    Default

    Quote Originally Posted by Perry View Post
    Owner-occupier builds have lots of emotional baggage. Rental ones don't.
    Durability and functionality take precedence in a rental build. Avoid things
    that need 'special' care and attention.

    I recall responding to my builder, when asked about some aspect of one
    particular finish item: what do you think is best and why, I asked? He told
    me. I then said: sounds great. Go ahead. He looked slightly bemused. Then
    I added: I don't care - I'm not going to be living here - do what's best from
    the perspective of durability and functionality in such cases.


    He thought for a moment, smiled and said: I think I'm going to enjoy this job.

    thanks perry for the advice, could u givesome
    examples of the finishes?

  6. #6
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,422

    Default

    The word "finishes" was intended to be all encompassing, rather than mean a certain type of paint.

    Choose carpets that are easier for a pro carpet cleaner to clean and remove stains from. Have
    a plain mirror, instead of one with an ornate frame. Choose cupboard catches that are durable
    and strong. Knobs are less likely to get broken than handles. Select functional curtaining material
    remembering that matching is impossible, as each tenant will have differing furniture. Use simple
    and inexpensive curtain tracks and connectors rather the wooden rods and rings. With decor, go
    for easy-clean / wash surfaces. I.e. avoid texture costings. A stainless steel benchtop unit is
    far better than those ghastly in / overlay sinks in some sort of vinyl type bench. Don't use any
    type of shower unit with a flexible hose to the shower head.

    Get the idea?

    It must be strong, durable, easy to fix / replace / clean. Avoiding PC language, only one or two
    in a hundred tenants will care for a home as if they owned it. The harder it is for resident or
    visiting children and adults to break, scratch, pull off, bend, twist, stain, dent, burn holes in,
    remove, maladjust, and generally wreck, the better.

    You will be doing both tenants and LL a sterling service by using the KISS principle.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


 

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