If you’re considering buying an investment property, there’s a lot to weigh up. Finding the right property is an absolute must if you want to earn consistent returns, so it’s important to do your research into the market and seek expert advice before you dive in.
One question you’ll need to answer early on is whether you’ll buy an existing property or build a new home. While at first glance an existing home might seem the best bet as it may be ready to move into now and you don’t need to wait for it to be built, in the long run, an older home can be far more costly and time consuming to maintain.
This is one of the reasons many people are choosing to build their investment property. A brand new home will require little maintenance plus there’s the added appeal of stylish new features and the touch of luxury that will attract quality renters.
So, if you’re leaning towards building your investment property, is a modular home a good choice? In this article we’ve pulled together some key information to help you decide.
Modular vs. Conventional
It’s worth mentioning upfront that when it comes to modular homes and conventional homes, the only real difference lies in how they’re built. Once installed on site, modular homes are a permanent home with the same level of quality, features and longevity as you’d expect in any new home. The off-site building method does not in any way affect the quality or durability of the structure – in fact, modular homes are often built structurally stronger as they need to be able to cope with travelling by road to site. In terms of style, modular homes are not lagging here either, with many beautiful modern homes being built across the world that are living proof that the days of modular being a boxy, quick fix temporary home are well and truly long gone. So in terms of an investment, you will absolutely get the same value in building the right modular home in the right location, as you would in a traditional stick built home.
When you build a new investment property, you’ll have the luxury of new materials, fittings, features and appliances, so the chance of breakdowns or maintenance call outs are slim. This is a definite bonus as any landlord knows that frequent calls regarding things needing fixing or upgrading can be a source of major cost and headaches in an existing, ageing home. This is especially beneficial if you are building a holiday rental, as it can be more difficult to arrange repairs when you are not located nearby. An example of a modular holiday rental can be seen in our four-bedroom Rye project, which has been a hit on Airbnb, with guests loving the balance between luxury and comfort that creates the perfect holiday vibe.
Another plus of a brand-new home is that your home will be modern and stylish, which makes it far more appealing to quality tenants. When you have a comfortable home with all the luxury touches and practical features we’ve come to expect, and it is built in a desirable location close to amenities, tenanting your home will be far easier.
An additional feature where modular homes have the edge over conventional is the faster build times. While both styles of homes need to go through the same planning and approvals stage with council, the actual construction of a modular home is just 12–16 weeks, which shaves weeks or even months off the build time when compared to an on-site build. This is due to efficiencies in the off-site build as everything needed is on hand in the purpose-built factory environment. There is also no time lost due to weather or other external elements that can delay an on-site build. The speed and efficiency of the modular build was a big drawcard for our client who built an investment property in Boronia, as he was able to get tenants in sooner.
Modular homes are a sound investment
If you’re looking to purchase an investment property, a modular home is an option you should certainly consider. With modern, quality fittings, stylish designs and a faster build time, there is plenty of upside for you and your future tenants.
Over to you
Do you have a question about our modular designs or construction process? We’d love to hear from you! You can reach us by commenting below, visiting ourFacebook page or by calling the office on 03 5145 7110.