Next Level Extensions Exposes Hidden Costs in Rental Home Investments

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Home renovation firm in Perth helps investors maximise their returns on rental home investments.

Next Level Extensions

A house extension can add space to an existing home without disturbing the living conditions while the work is being done. House extensions cost less money and take less time than conventional home renovations.

According to a recent Domain.com.au article, many people are turning to rental investment properties to generate extra income, especially closer to retirement age. While some think that buying a rental property is simply a matter of replacing a few knobs and fixtures, or slapping a few coats of paint over the “trouble spots,” renters are often looking for more.

Because of soaring prices, renters expect a lot from a home. If landlords want to attract good renters and be able to raise rents periodically, they have to keep their properties updated. In particular, bathrooms and kitchens should be upgraded at least once every decade. When changing tenants, it is good to look very closely at a rental property, not only for damages, but for the standard wear and tear associated with the aging of a house.

Chris Gray, founder and CEO of Empire, and who has been called “Australia’s most recognised property expert” by many in the media, is of the opinion that it is as dangerous to underinvest in a property as it is to overinvest. Gray is also of the opinion that people simply don’t want to rent properties that are out of date or poorly presented, and recommends that property owners ask prospective tenants which features they feel are the most important in a rental property.

In a recent conversation with domain.com.au, Gray posed a series of rhetorical questions: “Are tenants after baths or are they after showers? Are they after inbuilt laundries? Do they use washer-dryers or separate machines?”

For most investors, it always comes down to two common variables: time and money. It costs more to have the job done by a professional, but it takes a lot less time, and the quality of workmanship is usually better than even the best hobbyist can produce on his own. Domain.com.au recommends that costs for kitchen renovations should be capped at 2% of the value of the house, and bathrooms capped at 1.5%.

Another great strategy for increasing value and rents is to get a house extension. A house extension can add space to an existing home without disturbing the living conditions while the work is being done. House extensions cost less money and take less time than conventional home renovations.

House renovations and extensions can turn a two-bedroom, two-bath home into one with three or four bedrooms and three or four bathrooms, with an extra family or storage room. Single level homes can be renovated with a second storey addition, while ground floor extensions are also available. Most of all, the cost is much less for standard construction of the same building.

Next Level Extensions is a home improvement and renovation firm that specialises in home extensions and home additions. They are fast, friendly, and courteous. For an estimate, call (08) 9300 4691, or visit their website: http://www.nextlevelhomes.com.au/
DISCLAIMER: The information and opinions contained in this release should not be taken as advice and are the expressed opinions of the author. Readers should carefully evaluate its accuracy, currency, completeness and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

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Allan Williams
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