TWO SOLID STRATEGIES THAT ADD VALUE TO YOUR OUTDOOR LANDSCAPING BUSINESS
12 Jul 2021
The Australian Bureau of Statistics has shown that approvals for new house builds and renovations have surged 40 percent during June 2020 – an all-time high. Part of these approvals are for landscaping.
Landscaping and garden design can help improve the look of homes as well as its functionality, water management, air quality, or even prepare it for a small garden or indigenous flora or fauna habitat.
Designing gardens around sustainable principles not only makes client gardens or backyards look good, but it can also increase the value of client homes.
To add even more to your offering, you can guide your clients to choose projects that don’t need extensive approval and can be started almost immediately. You can also guide them on finance options – which can help save them a lot of money in the long term.
Examples of projects that don’t need approval but add value
There are many examples of projects that don’t need council approval but add value to homes.
Clients may believe that they need approval for anything more onerous than planting flowers or installing a new letterbox, called exempt development in most jurisdictions. These can range from small access ramps, awnings, balconies, decks, patios, pergolas, terraces, barbeque structures, carports, bollards, and fences in certain residential zones and for swimming pools.
A small deck under 25m2, retaining walls under 600mm, and new plants or turf are also considered exempt developments.
For example, this stylish and modern gate pillar design can be installed to increase value in your home without requiring development permits.
If projects have low impact on the community, such as a larger deck, bigger retaining wall, a swimming pool, or removal of a tree, you may need to apply for a Council Development Certificate (CDC) on your client’s behalf. Getting a CDC is much quicker than a development application; and are available through their local council or a Private Certifying Authority (PCA.)
As a landscaper, you should always check with your council regardless of whether you think the development is exempt, requires a CDC, or development application. It’s better to dot every ‘I’ and cross every ‘T’ than find out your development breaks the rules, and your clients get fined – which makes for very unhappy customers!
How to best finance an outdoor project
When it comes to knowing where your money is drawn from, we usually don’t ask the question. As long as it’s in our bank account, we don’t give it a second thought. But you can add more value to client relationships by probing a bit further – how are you funding this project?
Many clients may be tempted to redraw on their mortgage to pay for the development. Though it might be convenient, it can also cost them a lot in interest, as Savvy Managing Director Bill Tsouvalas explains.
“If your client says that they’re planning to redraw on the mortgage, their reasoning might be ‘oh, I’m on three percent interest, what’s another $10,000 on a $800,000 loan?’ A mortgage, as the old saying goes, is a marathon, not a sprint. Like a butterfly in Brazil fluttering its wings and causing a storm in Sydney, the interest is magnified as time goes on. You can explain to them, if they’re planning to make the same repayments, they can extend the mortgage by just one year and add another $19,412 to their interest bill!”
Tsouvalas says that people looking to finance their outdoor projects should consider comparing personal loans. A personal loan with a comparison rate shows the complete cost of a loan, as the percentage per annum includes most fees and charges. It’s not as common knowledge as you think – and you can step in before they make a grave error.
“Borrowing $10,000 at a comparison rate of 6.47 percent p.a. – which is more than double a usual home loan interest rate – leaves your clients on the hook for $1,731 in interest over five years. That’s a difference of $17,681 in interest. A powerful conversation to have is saying ‘imagine if I charged you tens of thousands of dollars more because you wanted to pay it off over a longer period?’ – it reframes the idea of one of value over financing. As you can see, financing outdoor projects with home loan equity is not a high value proposition.”
By suggesting minor yet stylish landscaping developments and asking crucial questions about finance not only increases the value for your clients, but goes a long way in enhancing your reputation and referrals from word of mouth.
Remember to consult a financial professional before applying for any credit product.
Find out more: www.savvy.com.au