One thing you need to get right before you buy a property, is the floor plan. Why? Because you’ll be up for tens of thousands of dollars to change it, assuming you can once it’s built. So, ensuring the floor plan makes sense is critical.
Commonly investors make mistakes when purchasing properties they haven’t seen in locations they haven’t visited, as they often fail to select the type of properties that appeal to the local owner occupier market.
Binnari Property specialise in seeking out investment properties for clients and one of the key criteria for recommendations is the floor plan. Dominic Cavagnino, Head of Research at Binnari Property says “the floor plan needs to have some fundamentals which unfortunately we find missing far too often. Things like natural light and positioning of rooms relative to windows along with the kitchen and lounge spacing are two key items that make a big difference.”
To make the point, below are two floor plans that illustrate the pro’s and con’s about this very issue. Floorplan 1 is a compromised two-bedroom apartment with a congested kitchen, single dining and living space and with limited natural light to the main bedroom (no windows in the main bedroom, light comes in via a void). This type of property has a compromised layout and is typically purchased by investors. As a result, there tends to be a higher turnover of tenants.
In contrast, Floorplan 2 is based on an apartment with an open layout, separated dining, living and kitchen space and significantly more natural light. This property was purchased by an owner occupier who planned to live their permanently. Investors who purchased these type of properties to rent out, will typically find that they have a lower turnover of tenants.
This article references material originally published and with permission from Binnari, you can see their article here https://binnari.com.au/owner-occupier/