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How do you boost the value of your real estate investment? Here are practical ways to do it.
If you’re an avid fan of the real estate show Love it or List it? Chances are there were times you picked your jaw off the floor after learning how much the value has skyrocketed after several changes were made to the property.
But aside from providing Aussies with a daily dose of property obsession, the show gives a good lesson to investors.
At the end of the day, an investment property is what it implies: an investment. And like any investor, you may be looking for capital growth over time while getting the best possible return in the process.
So, how do you boost the value of your real estate investment? You don’t need to rely on television magic to make it happen — here are practical ways to do it.
Ways to add to your investment property’s appeal and value
1. Clean and maintain your property regularly
Cleaning your property may sound like something that every responsible real estate owner should have on their list, but there are few who still overlook this simple tip.
Making sure that your property is clean (both inside and outside) and free of any unattractive odours will have an immediate positive impact on the value of your property, as it will give potential renters or buyers the impression that the property is well maintained.
A routine clean-up will also help you keep track of any issues on the property. Remember that small things can quickly turn into bigger issues, so it is important you address any maintenance problems promptly, as leaving them undone may snowball into larger issues that can impact the overall value of your property.
2. Add a fresh coat of paint
You will be amazed by the difference a fresh coat of paint can make to the overall appearance of a property. It can revive and brighten a tired space and also help make it appealing to onlookers.
When choosing a colour, it’s advised to select a neutral palette as it allows potential tenants or owners to add their own stamp on the property with their own style and taste.
3. Fix the flooring
Another easy way to boost the property’s value is to update the carpet or add hardwood floors or tiles. After all, no renter or buyer wants to live in a property with heavily scuffed floorboards or dirty carpets.
If you have carpets, have the carpet deep-cleaned by professionals or take some time to give it a good clean yourself. If you have floorboards, consider sanding and recoating them to give them a new shine.
4. Update the kitchen
A functional, modern and visually appealing kitchen is one of the biggest selling points of a property, as it is the central hub of a home for most people.
Therefore, if your kitchen is bordering on the out-of-date spectrum or it gives off a tired vibe overall, it could prove a major detractor to the overall value of your property.
Before you think this is gonna cost you a lot of money, we’re not suggesting that you do an entire gut renovation of your kitchen. Keeping your investment fresh and modern doesn’t always mean you need to take on a full-scale renovation project.
For starters, you can choose to change or improve upon only portions of the room. It can be as simple as painting old cupboards, replacing the doors or adding new door handles. You can also have the benchtop and splashback replaced if they are heavily stained or chipped. Make sure to also upgrade any old, leaky or rusty-looking taps.
5. Transform the bathroom interiors
Similar to the kitchen, the bathroom can be one of the most costly parts of a property to change because of the costly elements in the space, including plumbing, showers and bespoke surfaces.
But updating your bathroom does not have to be an expensive undertaking. If your fixtures and fittings are still in good and working condition, you can instead focus on replacing existing taps and towel racks with more modern designs that can give the bathroom more appeal.
New cabinetry and handles can also add immediate value. If it’s not within your budget, you may consider repainting it.
If your tiles are grimy and refuse to budge with a routine cleaning process, you can opt to have it resurfaced or replaced.
For added visual interest, introduce some greenery in the form of pot plants and consider installing paintings or other art installations for a decorative touch.
6. Create curb appeal
If you’re in the lead-up to selling your family home or filling up an upcoming vacancy and preparing the property for new tenants, investing in a beautiful facade will definitely add value. After all, it’s the outside of a property that buyers and visitors see first.
But don’t think that increasing the street or curb appeal of your property needs to come with a hefty price tag. Simple changes can also have a great impact. If done right, even the smallest efforts can increase your property value tenfold.
A few ways to create curb appeal without breaking the bank include:
7. Spend more money where it really adds value
If you are looking for higher return projects that are also more expensive, make sure you spend money where it adds money and makes a real difference to the rental income or selling price you can command. These include:
Remember that if your investment property is a unit, abide by your strata scheme. If this is the case, you can suggest getting bigger picture improvements made to the whole building to increase the value of your property. For example, tenants will often pay more for a security building, a pool, or one with lovely communal gardens they can utilise.
A key thing to remember is that while you want to improve your property and boost its value, don’t go overboard and over improve. It’s not advised to spend an amount of money on a renovation where you will not see a return on your investment. To make sure that your property will still be within the price range of similar properties in the area, do your research or talk to a local real estate agent for professional advice.
It’s also best to make sure that your renovations and upgrades are all above board. If you require permission from the council, you should make it a point to get it. If you make any major changes to your property that are not approved by your local council, it will be a money-draining mistake.
Last but not least, be patient. Of course, capital growth may happen in a few months or weeks, and the value of your investment property could surge in value straight away. Similarly, rents in your area may rise within the first 12 months of buying, meaning you have every reason to command higher rental prices.
But in reality, property investing is usually a long-term proposition. It may take some time to see the market ebb and flow and for your real estate investment to pay off. With this, remember that patience is key.
Disclaimer: The information provided is for guidance and informational purposes only and does not replace independent investment or financial advice, which we strongly recommend.
Smart Property Investment provides Australian property investors with must-have insight, strategies and real-life experiences to help guide successful buying and selling decisions in the Australian property market.
An investment is an asset or item purchased with the expectation that it will generate income or appreciate in value in the future.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.