There are lots of options available when looking to invest in residential property and one consideration is whether to buy an existing property or a ‘new
build’.
With the current RTA and Healthy Homes legislation, there is indeed a lot to think about.
Existing Homes
Unless you are buying an existing house that is already 100% compliant with current legislation, or wish to do any work required yourself, you should be
prepared to spend some time and money to ensure an existing home is completely compliant for rental purposes.
Having a Healthy Homes check done as part of your due diligence when buying an existing property is important. Does the property meet the current and impending
Healthy Homes Standards? This includes insulation, heating, draught stopping, ventilation, moisture ingress and drainage. If not, have you allowed
for the costs to make the home compliant?
Can the property be legally rented? Is the property a legal dwelling that meets current building codes? This includes any extensions, alterations, decks,
granny flats and sleep outs.
Are there likely to be any major upcoming maintenance or expenses over the next few years For example, how old is the hot water cylinder? Will the house
need rewiring or new plumbing? Is the roof and/or guttering likely to need repairs or replacement? Will the kitchen or bathroom need work? Does the
exterior need painting? Are the floor coverings wearing out? Are the grounds in good condition and easy for tenants to keep maintained?
Is the property going to attract good quality tenants? The best properties get the best long term tenants and the best rents!
New Homes
New properties should be compliant with current building codes...
