Renovating your investment property - When people hear the term ‘Investment property’ they think of a pristine home that is going to create an in-flow of capital that never stops delivering. The truth is quite different though and the adage of “you have to spend money, to make money” is a bit more realistic.
Often, the investment property you purchase will not immediately be as perfect as you would like and if you managed to buy property at market-related prices, then chances are that the property in question could be somewhat dated. In order to make your investment more appealing to the market and a lot more profitable, we recommend when it suits, a bit of cash outlay and a bit of elbow grease to get the house to your ultimate satisfaction.
Greeff Christie’s International Real Estate CEO Mike Greeff says, “Renovating your investment property is one that will surely pay dividends if you renovate wisely. At first, the property that you buy will only be around 70% to 80% of what you want. Overtime this may be changed. Aside from the investment and increase of value, the occupants will be able to enjoy the benefits of the property immediately unless they are property speculators. In my opinion, around 10% if that, of the market are speculators therefore, around 90% of people are purchasing the home to live in and enjoy. While renovating, there are some changes that will definitely increase the value on your property and urge lessees or buyers to stop and take a second look. However, as you and your family will personally be enjoying the property as you reside, the value of the home will continue to appreciate. There have been very few downtrends in the Cape area, and in real estate property as a whole, as there is only a certain amount of land dedicated to residential property.” Renovating your investment property .
Revamping the kitchen and bathrooms will definitely add a modern feel to the home, as well as adding an extra ten years of value to some of the most frequently used parts of the home. Having a garage added or renovated if it exists already is also a huge drawcard for potential buyers and lessees. A garage means peace of mind in terms of parking and vehicle security. This could also result in lower insurance premiums thus adding to your monthly savings. Automating the garage door and the entrance gate is also worth looking at as the increased convenience and safety are some of the things prospective buyers first notice.
The addition of a cottage on the property may prove to be a very astute as this increases potential living space and thus increases the rental potential of the property. If your property does have a cottage, you are able to have two rental incomes. A cottage may also allow for an au pair, caretaker, student or young professional to be on the property.
In addition to a cottage, the inclusion of additional storage areas is00 0w0e0l0l0 worth considering. Every household has items that require storage as they are not regularly used. The storage space can also be utilised as seasonal storage as you alternate decor and furniture between summer and winter.
A relatively simple yet amazing renovation trick is to change the old lighting and water fixtures for new energy and water efficient ones. Buyers and renters alike want to avoid unnecessary expenses and a home that is efficient appeals to the frugal side of any individual. Add to this the moral high ground of living in a home that does not actively harm the environment or is unnecessarily wasteful of natural resources and you have a winning formula.
While renovations to property that will be enjoyed by the family one may seem like a waste of money the simple truth is that the only guaranteed way to make money on an investment property is to invest in it and make the property as appealing as possible to a renter or buyer. Renovating your investment property .