Welcome to the 4th and final part of our 4 part series titled: How To Inspect An Investment Property.
In this 4 part series on how to inspect an investment property we will take a look at:
- How To Inspect An Investment Property – Suburb Research
- How To Inspect An Investment Property – Inspecting The Street
- How To Inspect An Investment Property – Inspecting The Outside Of A House
- How To Inspect An Investment Property – Inspecting The Inside Of A House
The number one mistake first time and established investors make is to think they can understand an area by jumping on realestate.com or domain.com. While its important to understand what’s available online it’s far more important to understand the underlying drivers in a market and to do the right research upfront.
When inspecting your investment property there are many features inside a house that you should keep an eye out for. Our guide to inspecting an investment property outlines a brief checklist of what you should look for when inspecting the inside of a house.
What is the design of the floor plan?
- Does the floor plan work?
- Is the floor plan open?
- Can the floor plan be opened up?
How many bedrooms does the property have?
The number of bedrooms is extremely important.
For a unit or a townhouse it is good to have 2 or 3 bedrooms, while its good to have 3 or 4 bedrooms in a house.
One way to manufacture capital growth into an investment property is to add additional bedrooms, bathrooms and car parking space.
- What is the condition of the bedrooms?
- Do the bedrooms have ceiling fans?
- Do the bedrooms have built in robes?
- How big are the bedrooms (m2)?
How many bathrooms does the property have?
One bathroom is usually enough for a basic investment property, although more affluent areas will generally require two or more.
- How old is the bathroom?
- What is the condition of the bathroom?
The condition of a bathroom is one of the key aspects to renting a property. You don’t want the bathroom to be horrible and old, but they can be costly to renovate. It is important to note that renovating a bathroom can be a strategic way to manufacture a capital gain and increase your rental yield.
What is the condition of the kitchen?
- How old is the kitchen?
- Does the layout work?
- Is the kitchen usable, or does it need any fixing?
- What is the condition of the cupboards / is there enough cupboard space?
What is the condition of the interior features?
- What is the condition of the walls and paint?
- Do the windows open and close easily?
- What is the condition of doors and the ceiling?
What is the condition of the flooring?
- What is the floor made of?
- Timber, carpet, vinyl, tiles, etc?
- Can the flooring be easily cleaned or fixed?
Flooring is an extremely important component of a property. It’s important to know if there is hard wood flooring underneath the carpet or vinyl. Timber flooring is quite an easy and inexpensive way to add value to your investment property. By polishing and restoring the existing timber you can save money (rather than putting in new carpet), it also is a durable flooring that wont get damaged over the course of having tenants living in your investment.
Is there asbestos in the property?
This requires a building and pest inspection to find out conclusively whether or not there is asbestos. Asbestos can add costs to a renovation. Contrary to popular belief it doesn’t always affect the liveability of a property until the time comes to renovate.
Is there air-conditioning in the property?
Air-con add value and look good when you are advertising to a tenant.
- How old is the air-con?
Could you easily add an additional bedroom or bathroom to this house?
It is good to have options for the future, if you are looking for capital growth from your investment, adding an extra bedroom or bathroom can increase the re-sale value of the property down the track.
What could you do to cosmetically renovate the inside of this house?
A coat of paint, re-sanding floors, changing the light fixtures and replacing window fittings are a few simple ways to add value to your investment property without being too costly for you.
Larger renovations such as redoing the kitchen or bathroom, and opening up the floor plan, are obviously going to cost you more but are smart ways to add value to your investment property.
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