May 9th, 2014.
Top Tips for Adding Value to Your Investment Property
Buying a property can be a fantastic investment to make in the current economy as house prices are rising much faster than interest rates. If you manage to snag a property for a price that is significantly below its market value, then minor changes can add value very quickly. Here are some of the improvements you can make to ramp up the resale price:
Often properties come onto the market which haven’t been changed in over 40 years. They tend have the same old fashioned kitchens, bathrooms and matching floral wallpaper and carpet that they fitted when the original owner moved in. This can be a huge turn-off for people who simply want to move straight in to the home and do minimal work.
Spending a couple hundred on new fixtures and fittings and giving the property a new lick of paint can increase its value by thousands and make it much more enticing for buyers. Having a modern kitchen and bathroom will make the most difference, as they make the home look much nicer and give the appearance that there is less work to do.
Extend or Convert
If the house is already in good condition then another way to add value to the property is to extend or convert the loft to create another room. Before doing this it is important to do the research on other houses in the area – how much value would another bedroom or an office add? Would it cost more to build than the value it would add? If the calculations show that it is feasible then you’re quids in!
In this day and age people will pay hand-over-fist for somewhere to park their automobile. Tearing up a front garden and laying down a driveway can add desirability, in addition to extra value. What’s more is this is a relatively cheap modification and is very simple if you already have the area to use. Many local councils are very helpful in assisting you with this change doing things like sloping the curbs and laying yellow lines.
Adding a garage, particularly a double-car garage, will almost certainly add value to your home. Just how much value it adds will depend on the area, if you’re in a busy urban area it could add up to 15%! This desirability of having a garage often makes it a mistake to convert it into a living space.
Add a Bathroom
Turning a storage closet into a toilet with hand basin can add a fair bit of value to your home, especially if it fits in where there is otherwise ‘dead space’ like under the stairs. Don’t do anything daft like converting a bedroom into a bathroom, turning your three-bed into a two-bed, two-bath home.
If you want to maximise the profit on your investment property then you need to ensure you get the perfect finance deals for you. To do this talk to us today, as property development finance brokers we are able to get you the best deals to help you get the most out of the development.