Two years ago I undertook the task of designing my home. I spent countless hours deliberating over every room, every cupboard and every centimetre to ensure I was using the space to my advantage.
As investors we don’t have the luxury of choosing how your investment is designed, however, it’s important to note the impact design can have on the success of your investment.
For anyone who’s been to a Blue Wealth property update (and if you haven’t, what are you waiting for?), you’d know that isolating markets at the opportunity point of the cycle with the economic drivers required for growth is just the first step of the research process.
The second step, or ‘micro’ step, allows us to narrow in on the most appropriate property in an approved market, significant component of which is an analysis of the design of the property. Design takes into account a number of factors, most notably:
Now, a one bedroom apartment at 45 square metres mightn’t mean much if you don’t have a benchmark with which to compare. Given individual room size criteria (bed, bath, living, kitchen), the minimum acceptable size of a one bedroom apartment approved by Blue Wealth is 50 square metres, and 70 square metres for a two bed two bath apartment. Similar guidelines are in place for townhouses and houses. In many cases it’s also harder to obtain finance for dwellings sub 45 square metres as these are deemed as appealing almost exclusively to investors, thereby eliminating a large segment of the resale market and increasing the riskiness of the investment.
Layout: natural light to bedrooms
This criterion is designed to eliminate dwellings with a narrow market appeal, such as studio apartments.
To ensure the functionality of the space, bedrooms must at least accommodate a queen bed and bedside tables.
Lengthy corridors or inefficient layouts can lessen the amount of useable space in a dwelling. Where wasted space exceeds a defined proportion of total area, a property will not pass the research model.
Functionality of space is fundamental in attaining the widest appeal in the resale market. As such, minimum living room sizes are in place, combined with an analysis of the functionality of the space given typical furniture positions.
Full kitchens (with an island bench) provide the additional storage often sought by owner occupiers.
Often times we’ll become involved in a project early enough to have an impact on design outcomes. So, although you may not have the luxury of designing your dream investment, Blue Wealth does the grunt work for you to minimise risk and ensure that you invest in an asset with widespread market appeal.