If you have always dreamed of investing in Melbourne real estate targeting young families but lack the capital to do so, don’t give up. Granted, the cost of building a rental home in Melbourne is not cheap. At $281,000, building costs for a home in the area can be out of reach. But you have another choice: a granny flat.
Unlike standard homes, Melbourne granny flats are more affordable and would require less capital. On average, these flats cost about $120,000, which is less than half the price of a standard home in Melbourne. And if you are still interested in targeting young families, you can do that. You might have to make some adjustments to get them excited, though. Here are a few pointers for attracting young families to your rental unit:
1. Give them the space that they need
While your beginner rental unit might be small, that doesn’t mean it should be limited to a studio or one bedroom. It is possible to have a two-bedroomed rental unit that will provide extra space for a child or two while also giving young parents the privacy that they need as a couple.
So when building a home for rent, be sure to consider the needs of a young family with kids. Two small or medium-sized bedrooms can be more attractive than one big bedroom that doesn’t recognize the children’s needs.
2. Fence the yard
Children are quite slippery. And that makes parents very nervous, especially if they look around and see an unfenced yard. As a real estate investor, you need to think about what appeals to parents with young children concerning their safety as they play outside.
If you have a large unfenced yard, there is a risk of a child running out and getting knocked by a car. There is also the risk of children getting lost. And even though the rental unit you offer is attractive on the inside, potential renters might dismiss it if it is unfenced. So take the time to fence the home you want to rent out before showing it to people. And if you have a swimming pool as part of the unit’s attraction, fence that, too. Drowning is a severe problem where young children are concerned.
3. Childproof your rental unit
It’s not enough for you to fence the yard. The home in which a family with young kids resides must be childproofed as much as possible. Start by installing stair gates; ensure that the sockets have covers and that cupboards have locks. When building your rental unit, be careful to install non-slippery flooring, especially in the bathroom areas.
4. Include a playing area outside for the kids
Children are meant to play. It’s part of who they are. So make sure that you include a play area outside for them. It could be something as simple as a grassy area where they can run around and jump up and down without getting hurt too much. It can also be a playset that includes things like monkey bars, sandboxes, swings, etc. Just make sure it is something that children will enjoy.
As a beginner investor, opting for a granny flat is an excellent way to test the Melbourne real estate market. You can still attract your target clients but on a smaller scale as you learn the ropes. And ensuring that your rental unit is family-friendly is how you will be able to draw that clientele.