Investing in a Garden Property: What You Need to Know

A new day begins with birds chirping somewhere outside and stepping into a green garden full of Australian native plants to have that perfect cup of coffee in this serene outdoor setting. For many Australians, this is not just a dream but rather a lifestyle choice and a smart investment. Garden properties have been steadily building in popularity throughout Australia, marrying exterior beauty with interior convenience. So, what is a garden property? Why should one even think of investing in one? Everything about investing in garden properties, from financial benefits to the fun of owning a house that truly celebrates nature, will be discussed in this post. The guide will help anyone, whether a seasoned investor or someone just starting out, to make an informed decision.

Why Invest in a Garden Property?

Garden properties offer something special—a mix of lifestyle benefits and promising investment opportunities. Picture this: an escape of tranquility and a home surrounded by greenery that feels like its very own little retreat. For a very outdoor-oriented climate, this is really appetising in Australia. But it is not just about good vibes. An apartment or a house with gardens that are well landscaped can sell for up to 20% more than other homes. So, that lump of green can be that elbow your investment needs to stand out in a highly competitive market.

Financial Considerations

Now we come to the crunch—because investing in a garden property isn’t all feel-good. Starting with the price of purchase, homes with gardens, especially in desirable locations, tend to be on the higher-priced end. But that they tend to appreciate better is the very best thing in their favour. According to a CoreLogic report, properties with well-maintained gardens in Australian capital cities have had an average annual growth rate of 7.2 percent over the past 10 years, compared with 6.5 percent for those without.

Garden maintenance, on the other hand, is another consideration. Depending on the scale and style of landscaping, you may need to budget for maintenance, irrigation, or even an occasional gardener. This should not deter you, though; these costs can be minimised by selecting low-maintenance plants and efficient irrigation systems. Also, a garden can ensure a higher rental price, which will help your expenses be recouped if you decide to rent out the property.

Here's a nifty way to fund the investment: use your super fund to buy property. SMSFs in Australia can invest in residential properties only if the properties are genuinely investment assets and not for personal use. This would mean that you can buy a garden property and rent it out so that the income and capital growth will be accumulated within your super fund.

There are tax benefits as well:

Rental income gets assessed at a 15 percent rate within an SMSF.
Capital gains get cut to 10 percent if held longer than a year.

It is a nice idea, but really do consult a financial advisor to get it straight.

Designing Your Garden Property

It is all about the design when it comes to the magic of a garden property. If you do it well, then you are left with a breathtaking area that packs some serious value. This is why a custom home builder can make all the difference. Unlike off-the-shelf builders, they will work with you to design a home that is beautifully integrated with your garden. Think enormous windows that frame your outdoor space or a layout that very much blurs that line between inside and out, all very much suited to Australia's alfresco living. A custom home builder literally takes your property from being a house with a yard into a lifestyle that is as practical as it is beautiful.

Legal and Practical Considerations

Before you get down to it, you want to briefly check out all the legal niceties of the land. There's a dizzying array of zoning laws and environmental protection regulations that could affect your garden plans all over Australia. If you are situated in a bushfire-prone area, you might be restricted as to what plants you can use. Dreaming of a pond or towering gum trees? Local council regulations might have something to say on the matter. Basically, it is all about doing your homework upfront to avoid surprises down the track.

Practically speaking, maintenance lets you keep that garden property in first-class shape, requires some elbow grease, but shouldn't be too taxing on you.

Native Australian plants are your friends here—they're hardy, beautiful, and made for this climate.
Pair that up with an irrigation system, and you've got easy water saving and keeping things green.
You could also divide up your garden into various zones—maybe a veggie patch, somewhere for the kids to play, or a quiet haven for chill-out time.
For the environmentally conscious, composting or rainwater harvesting could be a good way to keep your garden going in a sustainable way.

Case Studies and Examples

Need more real-world inspo? We have a couple of success stories. In Mosman in Sydney, a nifty owner worked with a custom home builder to turn a difficult sloping garden with tiered landscaping and its deck capitalising on the views into a truly special space that generated bid competition right from the commencement of its listing and sold well above the asking price.

Then there's a rental treasure in Melbourne's inner-city suburbs. The landlord bought through his superannuation fund a property with a small garden but big on cleverness. This worked wonders with tenants who were willing to pay a premium rent over competing properties without that little touch of green. Through the years the property value has steadily climbed on, delivering a steady income and a handsome profit further down the track. These examples will show you how garden properties pay in lifestyle and in dollars.

Conclusion

Investing in a garden property means you get a little bit of Australian living and a smart financial wiggle. These homes come with a lot to offer, from the calm ambience of an outdoor retreat to the promise of hefty returns. By laying the factors on the table, teaming up with a custom home builder for a killer design, and getting down to the nitty-gritty of legalities and practicality, you're ensuring your success. So thoughts: will a garden property be your next grand offer? Please comment below for your thoughts or experiences. We would love to hear from you. Happy investing!