Adding Value to an Investment Property

You own an investment property, so, obviously, you want to get a healthy return on your investment.

Adding value i.e. giving your property a refurbishment before you sell or rent it will improve your profit.

However, it’s easier than you think to end up overcapitalising i.e. spending more on the renovation than you can realise when you sell it. For example, adding more floor space will add value if that space is for bedrooms or bathrooms. If you were to add more floor space but all you’ve done is increase the size of the entrance then that’s not going to excite home buyers to pay more for your home.

In saying this, the exterior of your home particular from the front entrance is important as it is the first impression. Your first step therefore, is to make sure your home has curb appeal. You want the property to look well-maintained, with a clean driveway, and a clear path to the front door.

Don’t neglect the exterior siding either. It might need a good cleaning to regain its original luster.

Check the windows and doors, a new bead of caulking might make a huge difference to their appearance and also insulation.

As for the roof, it is important that it is not leaking. Replacing the roof is costly, but if it is needed, it is less expensive than all the repairs that would be required if it were to leak.

Inside the house, you want to create an air of spaciousness; each room must be clutter-free and clean. This process might require some elbow grease, but it is worth it.

If you choose to repaint a room, select neutral colours that are in style. Add some contrast with sparkling white baseboards and door frames against different colour walls. Stage your rooms professionally and you will obtain the perfect look to attract buyers or renters.

Lighting is also an important feature in making a house desirable. Not enough light and the rooms look like dungeons. Too much light and people will feel they are in an interrogation room. You must find the right balance to suit the atmosphere you are creating. If you are unsure of a decorating concept you have, ask around, get another person’s opinion.

Most of all, make sure you have set enough time aside to complete the work. When you show the house, it must be in move-in condition.

For higher-cost improvements, you can consider changing the flooring around the house, or renovating the bathroom or the kitchen. For ideas on cabinetry and storage solutions, consult your residential joinery. They probably have tons of new concepts that you can incorporate into your house, especially if you are thinking about entirely gutting the kitchen or the bathroom.

Before your start, inspect the space your want to improve. It might be possible to save the tile in the bathroom and just replace the grout. That would save you considerable time and money. The same goes with the shower and tub. Do they need to be replaced or would new fixtures do the trick?

Finally, do not forget the backyard or deck. Creating a nice outdoor area to barbecue and host a few guests might be the deciding factor in home buyers or potential tenants. If the patio is in good condition, a little staging should do the trick. If not, take the time to sand and refinish the deck, it will pay off when visitors see it.

Whatever the improvement you wish to make to your investment property, the secret is to not over-invest. You want to make it look good, without cutting corners, and without ruining yourself. This means taking your time, doing some of the work yourself, and planning every step of the renovation carefully. The day your house opens to the public, it must be perfect!