5 criteria for comparing two similar properties

As investors, we often find ourselves in situations where we need to make a judgment call about a property's value. Of course, there is no definitive way to determine exactly how much a piece of real estate is worth: it's not like a car in the sense that a certain make, model and condition equals a certain value.
In saying that, there are certain characteristics you can use to help determine a property's true wealth.
This can be particularly valuable when you're trying to decide between two properties.
If both properties are similar and they're both priced in the same range - say, within $10,000 of each other - then a little more research needs to be undertaken in order to make a decision.
There are certain factors you can consider when evaluating which property is the better choice:

1. Position and aspect
Is one property facing north? Is one on a corner? Are either properties located in a quiet cul-de-sac or on a busy main street? Any and all of these can impact a home's appeal and value.

2. Quality
This includes both the quality of the fixtures and fittings, and the care that has been taken to make sure the maintenance has been kept up to date. If one property is going to need extra money spent on it in the near future for repairs and renovations then those costs should be included in your budget.

3. Access to amenities
Is one a little closer to public transport than the other? This is especially important if you're looking at investing in an apartment that doesn't come with parking.

4. Layout
Does one property have a slightly better layout than the other? Consider spaces, nooks and crannies that can be converted into storage or study areas, as these can improve the property's appeal considerably.

5. Neighbours
What are the adjacent properties like - including the homes located directly next door and within the same street? Even if your house is in perfect condition, if the street is full of dwellings that are unkempt and uncared for, it can detract from your property's value.


Reproduced with permission Century 21 Life@home  http://www.century21.com.au/life-at-home/

6 touch-ups that actually devalue your property

Not every renovation or fix-up project ends in smiles and a pat on the back. If you want to know the six renovation undertakings to avoid at all costs, read on


1.  REMOVING ALL THE TREES:
It might be tempting to pull out the chainsaw and sought that depressing looking willow tree out once and for all, but be cautious. Contrary to many people's belief, removing trees can sometimes cause more damage to the value of a home than simply leaving them there. A large attractive tree can add $10,000 - $15,000 to the value of a property in some areas.
Provided trees are not damaging to the building, they can really add value in terms of sun shading and in terms of outlook and they can be very appealing to a lot of people. This is unless they are the sort that drop lots of rubbish on the roof and you have to clean up the gutters - they could be a nuisance. Of course, if there's any cracking evident on the property and it's bad, remove the tree immediately.


2. EXPENSIVE, BUT UNNECESSARY FITTINGS:
A reno that gives you the best house on the street, won't necessarily get you the best price. If you are an owner occupier in an area where there are a lot of rental properties that have been neglected and not well-looked after, it won't matter how much you spend on improvements, the rest of the neighbourhood will drag the value down.
Try to avoid expensive fittings and fixtures such as imported cook tops, taps, door handles and tiles - they don't always translate to a higher selling price. What impress buyers is light and space as well as good construction and zero faults. That's what they'll happily pay for. Some renovators believe expensive fixtures represent good design, but purchasers often don't like the previous owner's choice.
Middle-priced Australian-made products are often more serviceable and will bring the same price when you sell. Some renovators spend $15,000 to $20,000 more than they should, therefore, they're not giving themselves the chance of getting those expenses back.

3. DIY FAILS:
Homeowner-installed wiring and plumbing often spell instant devaluation on a property. It is illegal and dangerous and may be picked up by a pre-purchase inspection. Unless, you're a professional yourself, leave complex projects to those who know what they're doing.

4. PULLING OUT THE UGLY STICK:
Renovations should be sympathetic to the original building. Starting an extension without considering the form or visual impact of the exterior materials being used so that the renovation appears as an add-on rather than part of the house, can potentially devalue your property by at least $28,000 on average.
For example, if you stick a flat roof weatherboard box on the side of an older home with a pitch tile roof, it's going to look pretty ordinary and it's going to look like the cheapest possible way that you can add a room. That's not necessarily going to appeal to too many people when you come to sell the property.


5.  NO PLAYGROUND, NO BARBEQUE:
Poorly considered site planning, including extensions that can leave unusable outdoor spaces or are overwhelmed by fences and retaining walls close to important rooms will devalue the whole property.
If you look at the new home designs that are current at the moment, you'll see that there's a really big emphasis on lifestyle or an outdoor living. Whether you're buying a new home or an old home, people are looking for these features these days. It doesn't mean spending a fortune, it just mean organising the space properly so that you got a good open family area and an outdoor living area. Views to the back garden are important to a lot of people especially with young children, as they want to be able to supervise them when they're outside.


6. ILLEGAL BUILDING AND FAULTY STRUCTURES:
Undertaking construction work without a permit normally results in an instant fail. In some suburbs, one quarter of all houses had an illegal extension. A prospective buyer having a pre-purchase inspection when you try to sell usually picks this up. Illegal building ultimately costs some owners $30,000 or more to make it comply with regulations.
The same can be said for installing new kitchens and bathrooms without first checking that the sub-floor structures are sound. Many new kitchens are virtually destroyed in the first four years by floor subsidence. Joining the renovation onto the existing building in an unsatisfactory way should also be avoided. It can result in major cracks appearing between the existing and new building because of incompatible structural systems.

Reproduced with permission from Century 21 Life @ Home

http://www.century21.com.au/life-at-home/

Building green - turning rubbish into treasure

Building green - turning rubbish into treasure

If you're thinking about renovating or building a new home, you should consider using recycled materials and reduce the environmental impact of your project. The Internet is a great way to access pre-loved building materials at great prices.

When you start designing your project, consider what you really need. Larger homes won't only cost more but will also require more resources to complete. With clever design and planning you can make better use of the space you have available and reduce the need to add on extra rooms and materials.

You can also reduce the environmental impact of your project by re-using recycled goods from your existing structure or by purchasing recycled building materials. These materials are often cheaper than buying new building products, which will also assist you financially.

If your project involves demolishing the original structure I strongly suggest deconstruction rather than destruction. Re-use timber, doors, and window frames in your new structure to save money and protect the environment. Many people admire reclaimed wood as it offers a unique combination of antique beauty and uncompromising durability.

Bathroom storage guide

Bathroom storage guide

Create order from the chaos with a bathroom storage makeover.

Messy benchtops, cluttered drawers and damp towels on the floor are not only unhygienic, but they do little to calm a tired mind. Here are our tips to get you started.

Depending on your bathroom's size and layout, a practical storage layout might include built-in cupboards, floating shelves, a mobile trolley with shelves, and a medley of small storage including baskets and canisters. If space is at a premium, look to maximise all storage opportunities with recessed alcoves alongside the bath or shower, and clever additions such as wall hooks and rails.

GETTING STARTED

Clear the clutter

The first step to organised storage is a thorough declutter; clear drawers and shelves of cosmetics past their use-by date, throw out shampoos and soaps you no longer use, and find new homes for anything not strictly bathroom-related so that you can see exactly what you need to store.

Consider what you need to store

As the bathroom is a moist and steamy spot it's not always the best place to store spare towels and linen, so consider moving these to a cupboard elsewhere. Bathroom necessities generally include towels, grooming products, spare toilet rolls and kids' bath toys.

  

Store essential items within easy reach

Soap, shampoo and everyday grooming products should be stored within arms' reach of where you use them, such as a shelf beside the bath or shower or drawers beneath the sink. Items used less frequently can be stored on the upper and lower points of cupboards and shelves.

  

Consider built-ins

Cupboards and shelves that are designed to fit your bathroom specifications generally make the best use of space as they can be designed to go from floor to ceiling and fit into awkward spots. A mixture of open and closed built-in storage allows you to keep unsightly things such as cleaning products hidden behind closed doors and the more attractive ones out on display.

Keep tabs on belongings

In a shared bathroom make sure everyone knows what belongs to them by colour-coding toothbrushes and sewing different coloured tags on towels.

Consider maintenance

Glass shelves are easy to keep clean and won't visually clutter up the bathroom. Avoid over-filling shelves - plenty of light and space around display items will enhance the sense of space and calm in a bathroom.

Don't forget ventilation

Keep the bathroom fresh and hygienic by allowing moist air to escape through louvred windows or a ceiling or wall exhaust fan.

TOP TIPS

- If you're short on space, look around for hidden storage opportunities - consider installing tall cabinets beside the sink, hooks or rails on the back of the bathroom door, and a storage recess beneath a built-in bath or inside the bath hob.

- In a small bathroom look for furniture that double-duties, such as a sink with a cupboard beneath it, a vanity with built-in towel rail, or a storage stool.

- Keep storage furniture, such as vanities and shelves, off the floor by wall-mounting it to maximise the floor space in a tiny bathroom.

- Mobile storage, such as a trolley on castor with a couple of shelves, provides a handy spot for everyday essentials, and can be shifted away when not in use.

- A heated, wall-mounted towel rail is practical and stylish, plus it will dry towels quickly and cut back on laundry time.

- Narrow alcoves alongside the bath or shower are a handy spot for shampoos and soap, and won't clutter up your bathroom.

- Woven baskets for bathroom paraphernalia will add texture and natural appeal to a plain bathroom.

- If you're tired of the family flinging damp towels onto the floor, invest in a sturdy lidded laundry box for dirty towels.

COMMON PITFALLS

Wasted storage opportunities

Keep mess off the floor by seeking out hidden storage potential - consider an over-toilet storage rack, a corner cupboard for awkward corners, and a mirror fronted vanity cupboard with recessed shelves, all of which will boost your storage without sacrificing floor space.

Oversized storage

Overly-deep shelves and cupboards are difficult to organise and waste precious floor space, which only makes a bathroom feel smaller than it really is. Measure the items you need to store, and consider taking storage higher and wider to maximise floor space. For a streamlined look, set cupboards and alcoves deep into the wall cavity.

Boring storage

Add drama to your bathroom space by introducing unexpected storage pieces, such as a beautiful armoire, a painted vanity or an industrial-style shop fitting. Always ensure any wooden furniture is properly sealed to prevent water damage.