One of the most expensive rooms in your new house will be the kitchen.
For the purposes of research I spent an hour looking through my local Bunnings.
Just concentrating on stainless steel double drainer sinks I found they stock over 20 different types.
Prices range from $118 right through to $1,553.
That’s 1300% increase.
Want a ceramic sink and you could double the cost again. . . . and that is just one small part of the kitchen.
You have got to select taps, counter tops, cupboards, cook tops, ovens, range hoods.
I’m not saying select the cheapest of everything . . . just remember the more you spend on the kitchen the less you will have to spend on the rest of the house, or you may finish up with an horrendous mortgage.
Homeownership is something that many of us aspire towards, and something that offers us the opportunity to secure our future and the future of our family.
The only problem is that homeownership is becoming more and more expensive as property prices rise and the market becomes more and more crowded.
Thankfully, to meet the growing demands being placed on the market, there are a number of innovative solutions being created to meet this opportunity.
We’ve all seen the property estates that are popping up in cities with a range of beautiful brand new homes available to purchase, often for a greatly reduced price as compared to the established homes within the city.
These estates are usually located within commuter distance of the city – another key selling point of many buyers and investors.
What you might not know however, is that it’s possible to purchase the actual display home that is used to showcase the houses available from the developers.
Yes, developers are building their showcase display homes and are offering these for sale to prospective buyers as a savvy way to achieve a great return on a property from the very beginning.
A display home is an attractive option for home buyers and we’ve created a short list of points as to why.
Buying an investment property is a goal for many investors as they seek to diversify their assets and to gain greater financial freedom.
An investment property that is a display home, means that you’re securing a great property which is landscaped and complete with fittings and furnishings.
How it works is that you purchase the display home, and the company then rents it back from you and continues to use it as a display home for a set period of time.
You can then use the rent to pay your mortgage.
This equates to a positive cash flow property with a very reliable tenant from the get-go!
During this time, the developer will also pay the outgoings like insurance, gas, rates and electricity.
When the rental period is complete, you’ll have the option available to you to move into your beautiful home; to sell it; or rent out the property to a tenant.
No Waiting Period
When you’re buying an off-the-plan home, the process is such that you pay a deposit on the home or land based on the price at the time, and then you make incremental payments during the life of the property as the building process continues.
Often, you’ll find that the property has already increased in value by the time your build is complete and you’ll be left with some equity – a huge bonus for any investor.
The only problem is that while you’re waiting for the build to be completed, you’re not obtaining any rental return on your property, so there is that to consider.
The perks of buying a display home is that you’re getting rental return immediately, and you’re also enjoying any capital gains that might occur on the property during the rental time.
Beautiful Home
A display home is the jewel in the crown of any estate.
It’s the house that prospective buyers are going to be seeing when they’re looking to buy, so it’s in the best interests of the developers to make sure that the display home is a stunning example of their best work.
What this means for you is that you’re going to be the proud owner of the best of the best as far as their houses go – which means that you’ll have a top-quality home with exceptional fittings, fixtures and coverings.
Well, these are just a couple of excellent bonuses that you’ll get when you purchase a display home, so perhaps take thee into consideration if you’re an investor looking to buy and seeking a positive cash-flow option for your portfolio.
Last week was ‘Bathroom Week’ on ‘The Block’ and all the contestants were out shopping for basins with the WOW factor.
Fine for the judges. . . . . but some of these design concepts don’t think about the splashing of soapy water that can mean constant cleaning is needed.
Here are some of the practical things I have learned about wash basins.
Basins with a flat internal base, or that have a mixer that directs flow at the drain tend to cause more splashes than a bowl shaped basin.
For basins on the vanity a straight back that can be sealed against the wall avoids having a hard to clean area behind the basin.
A mixer set to the side, rather than centrally, allows you to lean lower over the basin minimising splashing outside the basin.
Having a medicine cabinet in front of the basin can prevent you leaning lower over the basin, thus increasing splashing outside the basin.
Square mixers result in water drying on the top surface of the mixer rather than running off, so they need cleaning every day.
Splashes really show on mirrors so have at least a couple of rows of tiles between the top of the basin and the bottom of the mirror.
I have been in England recently . . . and of course couldn’t resist spending some time looking at houses.
This house has just about the tackiest facade I have seen in a long time.
I don’t have a problem with people spending a bit of money on the front of the house. . . but this house breaks two of my rules for good design:
Think about looking at the house from the side rather than just from the front. If you have a clear view of the side it needs a transition, or in this case a continuation of the white render along the side of the house.
Make sure that the ends of the facade are well detailed. This looks so obviously ‘Stuck On’, but if it had been set between two projecting walls it would look much better.
It’s well known a lot of heat is lost through windows.
With single glazing the Thermal Resistance, ‘R’ Value is 0.16.
Although they aren’t considered in energy calculations (see this link: Energy Rating) curtains can significantly decrease the heat loss from a window.
They also improve the feeling of comfort.
Insulation Value
With different materials its not possible to give a definitive value for the insulation value of curtains however there are some indicative values in this post.
An effective curtain can increase the ‘R’ value of the window to between 0.3 – 0.5.
Even with a double glazed window curtains will typically further reduce the heat loss. (‘R’ value increased from around 0.33 to around 0.6).
Effective Curtains
To be fully effective curtains must:
Provide a ‘seal’ around the window to stop air movement at:
Top – Pelmet
Bottom – Overlap window sill by at least 300mm, or down to the floor
Sides – Overlap edges of window by at least 300mm.
If there has been delays in a house building contract the question of compensation comes up (see this link: Liquidated Damages )
A key factor in assessing damages is knowing when the construction contract started; as it isn’t written in the signed contract.
In order to avoid paying out damages many builders will dispute when the start date is!
They may argue about the date, or even try to say the start date is when the slab is constructed.
Here is some information to make you better informed about the start date.
Definitions
Well here are the definitions in the two most common forms of contract for new houses
Master Builders Contract (2015 Victorian Edition) :
“Commencement Date – means the date by which the Builder will commence to carry out works on the land” ( according to the standard contract the builder is supposed to advise you of the start date, but this doesn’t always happen)
Housing Industry Association HIA (2015 Victorian Edition):
“Commencement – means the day on which the Building Works commence on the Building Site”
To me that means ‘The day the builder erects a temporary fence, and installs a portable toilet’.
Recording the Date
Once you know the temporary fence goes up make sure this is recorded by:
Taking a photo with a camera with a date stamp; or
Taking a photo with a phone camera and Emailing it to your self.
It also doesn’t do any harm to Email the Builder saying you have noticed the contract started on a particular date. . . . This will put the builder on notice that you are aware of the issues relating to delays.
Delays
To check up about delays during the build follow this link: Contract Period
