Looking to expand your property portfolio?
You probably know that it’s a great time to be a landlord as interest rates are at an all-time low. And rental properties are in high demand.
But how do your grow your rental portfolio when the housing market is so buoyant? Prices are rising by the day, offsetting any savings in interest. Achieving good property yields is hard.
Savvy property investors know the answer. They make the most of their existing portfolios by adding another house to their land.
Do you have any land ripe for subdivision?
Here are 5 reasons why pre-fab homes are perfect for NZ property investors.
#1. Why rent one house on a property when you could rent two?
Have a property that could be subdivided? Prebuilt transportable homes (pre-fab) could be the ideal solution. By subdividing and adding another house to your property you can immediately double (or more) your rental income from the property.
Prebuilt homes are an easy option for subdividing because they’re built off site. This limits any inconvenience to existing tenants.
#2. Low hassle and quick to build
The beauty of prebuilt homes is the ease of building them.
The majority of the construction work happens off-site. This means timeframes are shorter and more dependable. You’re not at the mercy of the weather. You don’t have to manage the various trades turning up to the property. This is all taken care of before the house is delivered. Easy.
#3. The price is right
Prebuilt homes are cheaper to construct than starting from scratch because they utilise off-site building and systemised construction. Most prebuit homes are simple basic houses – perfect for rental properties.
You can also plan the layout of the home for maximum appeal to your target renters whether they be families or students.
If you’re looking at property yield then building an affordable but appealing rental property is an attractive option.
#4. Save big on maintenance
By starting out new, you give yourself years of minimal maintenance. Also prebuilt houses tend to be made of durable, low maintenance materials such as Hardies Weatherboard, with aluminum joinery and coloursteel roofs (that’s the case for Ezyline homes anyway)
Many landlords underestimate how much repairs and maintenance on older homes can cost.
#5. Attract (and keep) good tenants
A brand new home has great rental appeal. Who doesn’t want double glazing, full insulation, perfect paintwork, and all mod-cons? And you can often charge a higher rent than for a similar-sized older home.
Interested in exploring pre-fab opportunities? Want to increase your rental income?
HERE’S WHAT TO DO NEXT
Your first step is to find out whether you can get a consent from your local council. You can usually find the basic criteria online or by making a phone call to the council office.
And here are 5 questions to ask before building.
Too many things to think about?
Don’t worry, we do this every day. We can help you, and make building your new rental stress-free.
One day a bare piece of land.
The next, a brand new house ready to be rented!
Call me (Wallace) on 07 572 0230 and let’s talk.