Finance broker Andrew Mirams tells us what valuers look for in a property and his thoughts may just help you get your next investment property over the line with the lender.

Property valuer Gavin Hulcombe tells us what he thinks adds value to a property and what doesn’t. Great advice if you are looking to renovate with a view to adding value ready for re-sale.

Margaret Lomas explains why positive cash flow property investment is not a strategy and how the same property, if owned by two different investors, could deliver a totally different outcome.

Many Australians have chosen to invest in property to develop financial freedom and get themselves out of the rat race. Michael Yardney believes that as they take their investment journey, they fit into one of five levels of wealth. Find out where you fit.

Ed Chan joins us to answer a question from Robyn. She is confused about some conflicting advice on the available tax benefits on replaced items in an investment property.

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Transcripts:
What really adds value to a property? - Gavin Hulcombe
Kevin:  I often wonder with property whether or not there are any improvements you can add to a property that would always add value, and which, in fact, are the ones that don’t add value. I’ve spoken to a lot of investors who believe putting in a pool is going to add a lot of value, maybe adding another bedroom might do just that.

Let’s try and find out from a valuer what he believes does actually give you extra bang for your buck when you’re doing renovations.

Gavin Hulcombe is the chairman of Herron Todd White Trading and also Queensland managing director for Herron Todd White.

Gavin, thanks for your time.

Gavin:  Morning.

Kevin:  Gavin, in your experience, are there any areas of a property that will always add value?

Gavin:  I think I’m always a bit cautious about saying always, but I think there are areas where you have the best potential for adding value. I think if you start focusing on the kitchens, the bathrooms, outdoor living areas, that’s what really draws a lot of the lifestyle decisions that people make.

That’s what they see as being most important, so I think if you do it right and if you do it well and you don’t get too carried away in terms of over-capitalization, I think they’re the areas that I’d be concentrating on.

Kevin:  Are there some areas that are purely there for lifestyle that probably won’t add any value? I’m citing here pools as an example.

Gavin:  Of course, that’s always the first one that comes to mind. That’s a lifestyle decision not a financial decision in most cases. They look great, they’re great in the summers and those sort of things, but it is really a lifestyle decision; it’s not a financial decision.

As a general rule of thumb, you would like to get about half your money back on a pool, depending on where it is. Tennis courts can be a bit the same, albeit you don’t fit tennis courts on most suburban blocks. Yes, there are a few things like that, which are really about improving the livability rather than adding value.

Kevin:  What about things like double garages or even adding a bedroom to a property?

Gavin:  Look, it’s one of these things that is a bit difficult to generalize. Certainly, the second garage is really important, particularly if it’s a family area and the expectation is that you want to be able to garage two cars. Then yes, in those areas, the second garage is really important.

There are other areas where lifestyles are changing. People are saying, “Well, actually I don’t ne