Today’s Steveism will help you avoid making a common real estate investing mistake:
Buy houses for other people to live in.
Rookie investors apply their standard of living to the investment property they’re thinking about purchasing, and by doing so, more often than not tend to overcapitalise. Savvy investors think differently: they buy houses for other people to live in and thereby avoid spending more on trimmings and conveniences that don’t add any extra rent or value.
Nice carpet and curtains, high class tiles, appliances, and fancy tapware (and maybe even fluffy toilet seat covers) might all be great in your own home, but they’re unlikely to increase the financial output of a rental property. My best rental properties have been basic, but clean and functional, in areas that gave great rental returns, and yet I wouldn’t want to live there.
Watch this video for ideas on how to ‘tenant proof’ your rental property:
Have you ever made the mistake of purchasing an investment property that met your personal living standards but was, in hindsight, overcapitalising for the tenant occupying the property? Share your story below to help others.
Until next time, remember that success comes from doing things differently.
– Steve McKnight
Just a little tip that I once saw… the idea of extending vinyl on the floor (known as lino here), to the walls instead of skirting boards. This is happening more and more with commercial properties as it is easier to maintain and clean. This uses vinyl planks on the wall adjoining the floor rather than the traditional skirting boards. Bunnings now sells them.
Regards,
– Steve
That is a good idea re the vinyl planks, where you’re looking for simply a clean finish and it’s a 1950’s or later property that doesn’t usually have heritage type mouldings. I think it would also help for reducing crevices between floors and walls usually present with skirting boards, for bugs and mice etc. to hide out in, in residential properties in areas that these problems are common (which can often be the areas we’re investing in).
A squirt of bondcrete in your low sheen paint or you can use pvc glue as well, when you paint outside weatherboards helps keep the shine on longer. This tip from painter working at Bunnings.
My tip when renovating old kitchen you takeout the drawers and tape the old handles to back of drawer when put back in . This way you always have spares and when changing handles for a quick cosmetic reno you can have some of the old ones for measurements, dont have to redrill new holes etc you just buy more modern handles with the same hole distances etc.
Those are both great tips Mick; good for you.