Choosing to invest in property can be a difficult decision, particularly if the property needs work. Depending on why you choose to invest in a property, you may have your work cut out for you. Most people invest in property to flip it in a few years, make several major modifications that up the resale value, then sell it for a handsome profit. That’s smart property investment and good business.
But if you’re new to the property investment game, perhaps you need a little guidance on how best to invest in property. For example, which properties to invest in and how you can add that extra something that’ll skyrocket your property’s value in a few years. Here are a few ways that you can add value to any property you’ve chosen to invest in.
Fix the obvious
If you’re buying an investment property, chances are it could use some work. You know that going in and if you weren’t aware, it’s important to bear that in mind. One of your primary goals should be to fix any obvious major flaws. Let’s say that the roof might need some work – that could be a fairly significant investment. However, a partial or completely new roof adds great return-on-investment in the long-run. Similarly, new flooring will do wonders for the home’s current look and the resale value down the line.
Landscaping is critical
One of the most critical but often overlooked parts of a house is the exterior. In terms of resale value, it is perhaps even more important the interior. There are many considerations when it comes to your landscape, and many different ways to tackle problems to add value. Putting in a lawn is generally a good idea, if one doesn’t exist already. Be careful with your plant selections as well, as you don’t want to overwhelm your garden space – certain types of plants are invasive and will quickly take over. Be aware. Tidy up your trees and hedges often, but don’t go all Edward Scissorhands.
A little paint goes a long way
One of the first things that most investment property buyers will do is paint – a little paint has the potential to go a long way indeed. If you don’t like the colours that currently exist – then repaint. Narrow down the types of people who could be moving into your property and paint according to what you think they might want the space to look like. If you want to save money on this task – hire your neighbourhood kids to help you or do-it-yourself over the course of a weekend.
Brand new appliances
Few things go as far in any investment property as brand new appliances. Let’s say you’ve bought a 30-year-old home, and it still has all of the functioning-but-very-old appliances from 10+ years ago. A fresh upgrade on these appliances will help you save money in the long run, as many appliances in the modern era are far more energy-efficient than their aging counterparts. You can even get grants from the Government for making your investment property more energy efficient.
Make small additions now
There are several relatively small additions that you can make to your aging property without having to break the bank that will increase the value and help to attract new tenants or buyers when you’re ready to sell. Things like air conditioners and dishwashers are a great addition that tenants will generally thank you for. These relatively small investments will pay off when it comes to potential rent increases and make great selling points down the road.
Add a pool
One of the great additions to any home, and particularly to a home that’s made to be sold for a profit is the addition of a pool. With the world getting hotter, people are looking to the water more than ever, as a place to spend their time. If you have the backyard space, why not invest in a pool? If not for yourself, then perhaps for your tenants. It will give you an option to stick some money onto the initial asking rental price.
Whatever your plans for your investment property, there are so many ways to increase its resale/rental value without having to necessarily break the bank. And after all, it is an investment property. It’s your job to make it the finished article and sell it for a profit.