What To Look Out For When Building An Investment Property

31 August 2021

It’s no secret that there’s a lot of benefits when building an investment property for a build-to-rent investment. Although at first building an investment property to be rented out can seem quite overwhelming, especially if you are a first home buyer, the rewards of building a flourishing property will completely alleviate anxieties as the benefits can truly be reaped when understanding these key considerations.

Design a Versatile Home

Designing an attractive home

Design a Versatile Home

At Porter Davis, we pride ourselves on designing attractive homes that feature all the latest modern installations. Whether it’s a front-facing master bedroom with two walk-in wardrobes or a contemporary open plan living at its best, we understand when designing an investment property you’ll want to focus on the spaces that are important to your renter. For example, if you’re building a Townhouse, your target demographic may prefer floorplans that include open spaces, or perhaps if you’re building one of our House & Land packages, for families looking to upsize, you might focus on larger spaces with extra rooms for a study or rumpus room. Whatever the case may be, it’s best to look at how the house design caters to the needs of your target demographic.

Look at Growing Locations

Suburbs with population growth

Look at Growing Locations

When building an investment property, it’s important to consider locations that are in fast-growing areas. Well-established locations can feature excellent infrastructure development works and are close to schools and public transport. They may also offer a sought-after lifestyle such as a sea-change or slightly further away from the hustle and bustle of the city. Knockdown rebuild opportunities offer the affluence of key inner-city suburbs and are often close to popular city areas, perfect for the investor looking at attracting a specific renter. According to a recent study at REA, with historic low-interest rates and low returns in most asset classes, residential property investment is likely to become increasingly attractive in 2021. When building a rental investment it’s important to understand the trajectory of the location you’re building in.

Building an investment property

Understand The Different Types Of Investment Properties You Can Build

There are different building options that are tailored towards your build-to-rent investment choice, such as a House & Land packages, Townhouses, or even a Knockdown Rebuild opportunity in a key metropolitan area. Knowing your renting audience is key to selecting the right option for your investment build. If you are building an investment property Townhouse in an attractive location, an investor will have a certain level of demographic knowledge regarding the possible tenants.

“Porter Davis have a number of different product and design solutions to suit a wide variety of investor requirements; such as Townhomes, House and Land packages and Knockdown Rebuild. We certainly encourage any budding investors to reach out to us so we can assist them with finding the best build that suits their unique situation”.

National Sales Manager, Ben Smarrelli
Think Quality = Longevity

Value for money

Think Quality = Longevity

Understanding the importance of quality is quintessential when building a rental property that will have durable longevity. At Porter Davis, there is more thought built in our homes. As we focus on prioritising high-quality workmanship and excellent value for money, our home designs have a reputable quality in addition to our customisable home designs. Building a house that’s good quality will cause an investor fewer problems in the foreseeable future and will promise the renter a superior,  yet comfortable living space. Renters want to know that the builder is recognised for their fine quality and can be promised a level of security in their temporary or possibly even forever home.

The Advantages of Building Over Buying

Not only is building entirely customisable, but depreciation is also tax-deductible and investment properties typically let you claim the depreciation on a vast array of things. Properties that are built to rent investment also let you claim the depreciation on internal fixtures and fittings such as blinds which can also reduce your overall taxable income. It is suggested to see a professional accountant for anything tax-related. 

No matter what avenue you decide to go down when building an investment property, there is evidently lots of options that are well-tailored to your renter’s needs!