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Rising costs, declining returns, and more competition for new housing spaces put pressure on property owners and affect their bottom lines. Innovative methods for attracting and keeping tenants while boosting rental income are needed by landlords.
The market for investment properties is seeing increased competition due to expanding investment in this region. Large negative gearing tax benefits are what drive the attractive investment climate. Also, property investors are extensively advertising themselves and diversifying their assets, which has aided in the industry’s continuous growth.
If you’re also looking for ways that can help maximize ROI for your property investments, we’ve got you covered by listing down some best strategies to follow in Melbourne.
Make A Few Minor Changes
Initial impressions are essential, and buyers may be willing to pay a little more if they feel they would get greater value. You may make a few cosmetic changes to your investment properties, making them more habitable and enabling you to charge more for them. For example, if your home has a front or back yard, consider landscaping it, planting trees, or adding a low-maintenance garden to boost the property’s attractiveness to prospective buyers. Small touches may make a huge difference.
Make Some Improvements
Give your rental house some TLC to make it more appealing. Inexpensive improvements will not break the bank but will have a significant effect. Focus on the kitchens and bathrooms, for example. These rooms may need minor updates such as new tiling, painting, or cabinetry refacing. You may paint, plant, and clean the gutters to give the house a fresh look.
Install a New Room
Adding a room to your home might result in a 10% boost in rental income. Extra space would not cost you an arm and a leg since bedrooms in many Australian houses usually are 12 square meters, and construction expenses are $2200 per square meter. The ROI is also beneficial because the investment would be repaid in less than two years.
Perform an Attic Conversion
The quantity of available roof space dictates whether an attic conversion will work in your house. Constructing more space on your property, if it can be done inside an existing structure, is very cost-effective, which leads to higher rental returns.
Including a Garage or a Shed
Even though a garage or shed is not costly, it considerably influences the buyer’s selection since many tenants now choose close off-street parking. A 36 to 40-square-meter double garage generally costs $1800 per square meter. But you may scan the market for the best pricing and find better deals. If building a garage is too costly, you may go for a carport, which is far less expensive.
Look For Knowledgeable Tenants
You may enhance your rental returns by concentrating on a certain market, such as international students. Australia is one of the world’s top international student destinations, and investment homes near schools and universities yield 8% rental returns on average. You may benefit from this lucrative market by investing in real estate near educational institutions. A one-bedroom flat in Melbourne now costs $500 per week on average.
Spend Money on Granny Flats
Granny flats are desirable real estate investments in Australia, with rental yields ranging from $200 to $400 depending on the property’s area and quality. Building costs vary from $15,000 to $30,000, but it’s essential to determine if local rules allow you to rent out your granny flats to individuals who aren’t related.
Get Professional Help
If all the above-listed strategies seem significant to you, but the process looks overwhelming, we’ve got you covered by offering the best wealth management services in Melbourne. We have the finest investment advisors in Melbourne available in our team who can provide professional advice in property and investment planning, ensuring maximum returns on whatever you invest.
