March 5th, 2015.
5 Ways to Increase Your Property Value
Many people believe that investing in bricks and mortar is, as they say, ‘safe as houses’. You can just sit and wait for the value to rise. But remember values can go down as well as up, so what can you do to make sure that you make a profit from your purchase? Here are 5 top tips:
Rent it Out
If you want to do minimum work to a property, but don’t want it to sit empty for a long period of time why not rent it out and become a professional landlord?
Rental charges will of course depend on the size of the building, parking and other facilities, as well as whether you provide furniture or not; but in most cases you can charge a healthy value.
You want to aim for an 8% yield per year or better, in order to pay off mortgage repayments and make a small profit on top. If you can make more that’s even better!
Submit Planning Permission
One sure way of adding value to your residential or commercial property is to seek planning permission to extend the building (whether you act on this yourself or not).
The fee for submitting an application will depend on the type and scale of the planned development. And with professionally drawn up plans, this can cost around a £1,000 to do. But, if granted you can make a hefty return on your investment when you are ready to sell the property.
If your neighbours have extensions then you are very likely to get this application granted. And once approved, it will be valid for 3 years in most circumstances.
Get in contact with one of our development finance brokers and you may find a great loan allowing you to complete this development work yourself. Which, of course, will increase the value of your property substantially more than just the permissions will.
Extending into attics or basements are most likely to be successful as they add more space without compromising the exterior of the building, which may be important with older properties.
Though in many cases a simple back or side extension can be very effective – adding tens of thousands to the value.
Change the Windows
It may sound simple, but changing the windows will not only leave you feeling warmer but it will make you better off when it comes to selling. We’re now in the age of triple glazed windows so there is no longer an excuse to have single pain glass in your property’s windows – even if they were fitted 20 years ago. Switch them out! New windows are more fuel efficient meaning they can save you money while you use the building. And when it comes to selling, buyers won’t be put off because they immediately have to do work on the property. You may even be able to value the property higher because of the ability to move in with no work needing to be done.
Knock Down Walls
We would not suggest decreasing the number of bedrooms in a residential property to create one grand master. But it could be beneficial to create an open plan modern living space by merging the kitchen and dining room. This can also work with commercial property. Most offices require one large office space, with a few meeting rooms and a kitchen. By knocking down those partition walls, buyers are able to see the usable space more clearly.
Are you a successful property developer with experience making money on buildings? Then we’d love to hear your thoughts.
For those of you looking to invest in property, speak to one of our brokers today, and we’ll see to it that we get you the best financial deal possible to make your dream a reality.