Finding The Balance

Had an interesting chat with an investor client the other week when we were doing their pre-start for an upcoming 3 unit development.  It was all about how we needed to keep in mind that what they see as an investment, others will see as their potential new home and how we find the balance between these two different perspectives.

As property investors, we often look through the lens of return on investment.  Whether you are building to sell or building to rent, you are ultimately building to make a profit.  This perspective guides your decisions around location, size of home and specification.  On the flip side of this is the way that potential buyers or renters view your investment.  These people are looking for a place to call home.  They are also making decisions around location, size and specification but with much more emotional input.  So how do we find the balance between these two points of view?

Put yourself in their shoes … what would you be looking for in a new home?  To do this, you need to research your target market.  Who is it that will be looking to buy or rent your investment property?  You need to understand both their lifestyle and aesthetic style.  Are you building  for young families in an area close to local schools and parks or are you building closer to the CBD for career couples who are looking more for lifestyle amenities?

Designing a home that suits the lifestyle and needs of your target market is the first step to making your investment appealing  to your target market.  For example, two separate living zones for families is often a plus so that adults and kids can each have their own space.  On the other hand, couples who eat out more often may not need a separate dining area.

Finishing a home that appeals to your target market is the second part of the process and the one that started the conversation during the pre-start with our clients.  Sticking to a neutral colour palette is safe but can also be bland.  Creating some ‘WOW” factor in your investment property doesn’t necessarily mean upgrading the specification and spending more money.  It’s about choosing colours and finishes that create impact and interest and that invite potential buyers or renters to create an emotional connection to the home and see it as ‘theirs’.