Need More Closet Space? 6 Chic Interior Design Solutions

In the series How to Live With a Room You Hate, we ask design pros to solve everyday interior problems.

A ROOM with little or no closet space can leave you feeling bulldozed by your own belongings. “It’s unsettling when nothing has a home. Creating a system that maximizes your space can change your whole mood,” said Jamie Garson of Better Than B4, a custom organizing service in Manhattan. Here, six stuff-stowing techniques that offer relief when a bedroom is bereft of storage.

1. Increase Your Screen Time

When Gavin Smith, an architect with Perkins + Will, turned an attic space in his 1910 Craftsman home in Seattle into a bedroom for himself and his wife, he wanted to leave the space open and airy. So rather than building a traditional closet, he constructed cabinetry and clothing racks under the cathedral ceiling and shielded them behind a peek-a-boo screen of cedar slats supported by chic, blackened steel. “A solid drywall would be perceived very differently,” he said. “Because the screen is see-through, it creates a sense of depth.” Smith gave the partition—which also serves as a place to hang a flat-screen TV—a walnut stain to match a nearby dresser. If you want to skip construction, suggests Garson, tuck belongings behind a standing room divider.

2. Play Dress-Up

Interior designer Emilie Jacob gave a closet-less child’s bedroom in Dubai a clever theatrical fix by installing rods to hang clothing, many at a low level, and suspending drapes that, with a pull, can hide them on a whim. The drapes delineate a dressing area that lets the little girl don her duds in privacy. The curtains begin where a modular IKEA bed with underbed storage and attached wardrobe leaves off. “The linen curtains are really light, and there are no cords,” said Jacob, who founded local design firm Stella + the Stars and collaborated with Studio Tsubi, also in Dubai, on the room. “Any child can pull them open or closed.”

3. Broker a Separate Piece

When bad luck or circumstance has robbed you of a closet, a free-standing wardrobe makes for a classic solution. One with many benefits, contends Russell Pinch, the owner of Pinch, a furniture and lighting design firm in London. “It’s an investment…but one you can take with you.”

Freestanding wardrobes can solve the storage dilemma – and you can take them with you when you leave. Credit: Getty Images

And importing a wardrobe rather than constructing storage can be kinder to architecturally valuable spaces, like the bedroom in Pinch’s vacation home in Charente-Maritime, France, in an 18th-century structure that was originally a cow barn. “We wanted to preserve the….beautiful parquet floors and timbered ceilings,” he said. “A built-in would have dominated the architecture and reduced the size of the room.” The white wardrobe, which he designed, “is an elegant solution. It looks like plaster-relief work,” said Pinch. Next to the wardrobe a full-length mirror with drawers at the bottom offers additional storage and helps complete a dressing area.

4. Get a Side Hustle

In a London townhouse, local interior designer Andrea Benedettini fit a full-size bed into a relatively narrow room, and rather than flank it with nightstands used the tight space on either side to build matching full-height closets. Unwilling to forgo the benefits of traditional bedside tables, he hung sconces on the sides of the closets facing the bed and carved out niches (complete with concealed lighting) to create a ledge for a book, phone or water glass. “Simple design details like the niche elevate the design,” Benedettini said. “Applying a fabric to the closet door and bespoke bronze hardware helped create a calming and luxurious space.” A ceiling-height upholstered headboard bridges the closets, connecting them visually into a whole, so the bed appears to be tucked into its own soft alcove.

5. Let It Rock

According to organiser Garson, much of our wardrobes can live outside a closet quite nicely. She suggests openly displaying an amazing sneaker collection in a media unit, placing funky handbags on floating shelves or arranging hooks on a wall for an artful pattern of hats or scarves.

6. Let It Roll

For a bedroom with no closet, Hilary Matt lets it all hang out with a rolling rack for clothes. The trick to exhibiting your wardrobe (warning: this is not for slobs)? “Keep the [rest of the] décor clean and monochromatic so the room doesn’t feel cluttered,” said the Manhattan interior designer.

Open clothes racks can work well as long as they are kept tidy. Credit: Getty Images

The pop of colour from the apparel, which needs to be well-organized, adds to the room’s scheme “like a piece of art,” she said. Organiser Garson favours racks that match the style of the room, whether made of a fun acrylic or the more-masculine matte black metal.

For months, I have been one of the few commentators openly stating what the data was already showing: property prices had begun to fall.

The latest figures confirm it. Cotality’s June 1 Home Value Index showed Sydney values down 0.9 per cent in May and Melbourne down 0.8 per cent. ANZ has cut its national capital city forecast to 2.8 per cent growth this year, down from 4.8 per cent in April. CBA has also downgraded its outlook.

So the Federal Budget arrived at the worst possible time, with the wrong prescription, to treat a problem it fundamentally misunderstands.

Treasurer Jim Chalmers has suggested that making it easier for first-home buyers to get a fair crack at auctions is a good thing. The reality is more complicated.

Driving property prices down does not simply hand a discount to first-home buyers. It affects the 1.4 million Australians employed by the property sector, the 67 per cent of household wealth tied to housing, and the state government revenues that fund schools, hospitals and roads.

The government had a choice: tackle supply constraints, link migration growth to housing completions and reduce spending, or increase taxes on property investors. It chose the latter.

Property is an economic pillar

Property is not simply another investment class. It contributes about 10.6 per cent of GDP directly, up to 15 per cent when flow-on effects are included, and employs more than 1.4 million Australians. It also generates more tax revenue than mining and underpins consumer confidence through the wealth effect.

Against that backdrop, the Budget removed negative gearing from established residential properties purchased after Budget night and replaced the 50 per cent capital gains tax discount with cost-base indexation and a 30 per cent minimum tax from July 1, 2027.

The government calls this fairness. I call it a misdiagnosis.

The grandfathering trap

The policy is also internally contradictory.

Properties purchased before Budget night are grandfathered, allowing existing investors to retain full negative gearing and capital gains tax benefits until they sell. The logical response is simple: hold.

That means fewer properties coming onto the market, fewer rental listings and reduced transaction volumes.

The result is likely to be higher rents, reduced stamp duty revenue and further inflationary pressure at a time when the Reserve Bank remains focused on bringing inflation under control.

The government is attempting to fight inflation with one hand while fuelling it with the other.

Who really owns investment properties?

What is often lost in this debate is who Australia’s property investors actually are.

According to ATO data, 71 per cent of investors own just one investment property. They are not wealthy property moguls.

They are teachers, nurses, police officers and small business owners who have purchased an investment property as part of their retirement strategy.

For many Australians, property remains the most tangible and trusted pathway to building long-term wealth.

Removing the incentives that supported that investment does not hurt a billionaire developer. It hurts ordinary Australians trying to secure their financial future.

Investors aren’t the affordability problem

It is true that housing affordability has deteriorated significantly over the past two decades. However, negative gearing is not the primary cause.

Research by economists Ross Kendall and Peter Tulip found planning and zoning restrictions significantly increase housing costs.

Their work showed zoning lifted detached house prices well above marginal construction costs in Sydney, Melbourne, Brisbane and Perth.

Low interest rates, strong population growth, chronic under-supply and restricted access to development-ready land have all played a much larger role in pushing prices higher.

Punishing private investors does nothing to address these structural issues.

The Build-to-Rent advantage

At the same time the government is reducing incentives for Australian investors, it has created a more attractive tax environment for foreign institutional capital through Build-to-Rent projects.

Under current arrangements, foreign institutional investors can access a 15 per cent withholding tax rate through Managed Investment Trusts, accelerated depreciation benefits and exemptions from the new negative gearing restrictions.

State governments have added further concessions, including land tax reductions and exemptions from foreign investor surcharges.

Australian mum-and-dad investors receive none of these advantages.

The cumulative effect is striking. Foreign institutions can access a range of tax benefits unavailable to Australian private investors, while local investors lose concessions they have relied upon for decades.

This is not solving the housing crisis. It risks transferring ownership of Australia’s rental housing stock from local investors to offshore institutions.

Why state governments should worry

There are already signs these changes are affecting the credit cycle.

Major banks are removing negative gearing benefits from serviceability calculations for investment loans.

As market conditions soften, lenders become more cautious and investors find it harder to secure finance.

That matters because property transactions are a major source of state government revenue.

In NSW alone, transfer duty generates more than $12 billion annually. If transaction volumes fall significantly, the impact on state budgets will be substantial.

The consequences extend beyond stamp duty to GST collections, payroll tax receipts and land tax revenue.

The 95 per cent loan trap

There is another aspect of the Budget that concerns me.

The government has expanded first-home buyer deposit guarantee schemes, allowing eligible purchasers to buy with a five per cent deposit backed by the Commonwealth.

The intention is admirable. The timing may not be.

If prices in Sydney and Melbourne fall further, buyers entering the market with 95 per cent loan-to-value mortgages could quickly find themselves in negative equity.

They become trapped. They cannot sell without crystallising a loss, while the taxpayer guarantees the loan and the bank remains protected.

That is not wealth creation. It is a debt obligation.

After three decades working with debt and investment, I would never encourage my own children to borrow at a 95 per cent loan-to-value ratio.

A policy built on politics

The government had an opportunity to address the housing crisis by encouraging supply, reforming planning systems and reducing development costs.

Instead, it chose Robin Hood politics.

The optics may be appealing, but the economics are not.

Australians may ultimately pay the price through higher rents, weaker investment and a future in which an increasing share of the nation’s housing stock is owned by offshore institutions rather than local investors.

Paul Miron is the Co-Founder & Fund Manager of Msquared Capital.