Do you already have an investment property or are you looking for your first investment property?
There are plenty of way to add value and increase the income of your property. Always look for an upside with the property, ideally look for several upsides.
Think outside the box and find ways to add another bedroom (or add an office in our case), convert the garage to a bedroom, add a minor dwelling, or subdivide and get a transportable house put at the new section, any of these options should give your existing property higher yield.
With all the recent government changes, having an upside to your property becomes even more important than ever. Ensuring your property is cashflow positive is paramount and a property with an upside can give you that extra boost in your income.
Add another bedroom
More bedrooms mean you can ask for more rent. Look for ways you can convert a sunroom, second living space or another unutilized area where you can add another bedroom. Converting a separate laundry and toilet to a bedroom, where the bathroom is large enough to become the main bathroom, is another great option to create another bedroom. Consider moving converting a separate kitchen to a bedroom and add the kitchen to the lounge, where the lounge is big enough to have an open plan kitchen.
Garage conversions can be a great way to add another bedroom to your property but be aware that the building needs to meet the Building Code as a habitable space, so make sure you do thorough due diligence before starting any garage conversions. However, a garage conversion can give very good yield, – make sure you do your numbers to ensure you achieve your required yield before you start your project.
Add a minor dwelling
Adding a minor dwelling at the back of your property can be an excellent way to achieve higher rent. Make sure you work within the requirements for a minor dwelling, max 60 m2 and check with your local council to ensure you stick to the rules in your area, e.g., some subdivisions only allow a minor dwelling that is attached to the main house; however, it is normal that the minor dwelling is a self-contained detached building.
Subdivide your property
Check the District Plan if you can subdivide your property. Check on google maps with neighbouring properties, what do the neighbouring sections look like? If the neighbour has 4 houses on the same size section as you, then that is an indication that you can probably subdivide your section in to 4 separate titles. Talk with a planner, they will know what is possible on your site and can help with ideas. Are you keeping your existing property or are you demolishing existing and building new? Or just adding another property on a separate title at the back of your property and rent it out and use the equity gain to purchase another property?
So many options to add value and increase the income on your existing property.
Are you looking for your first investment property? Always look for an upside to the property. Look for at least 1 upside, e.g., add another bedroom, add a minor dwelling, subdivide, and get a transportable house put on the new section, now you have a brand-new house on land you already own, which means higher yield.
With all the recent changes, having an upside to your property becomes even more important than ever. Ensuring your property is cashflow positive is paramount and a property with an upside can give you that extra boost in your income.