If you’ve bought a property for investment purposes, it’s important to maximise its value so you can make the most out of your investment, whether you’re planning to sell or rent it out.
The value of a property is never static. While some aspects that affect its valuation, such as location, can’t be changed, there is a lot you can do yourself to boost the value of your property and attract more people and better offers.
The good news is, not all upgrades to your property need to cost a fortune. Big structural changes can be expensive, but there are also a lot of smaller and cosmetic changes you can make which can offer a bigger return for only a small investment. Concentrating on small details like new appliances and flooring, for example, can make a world of difference.
Here are a few simple steps you can take that will enhance the value of your property, without you needing to rob a bank.
Simply giving your property a really good, deep clean can make a big difference to its appeal, particularly to renters. Clean all the areas you wouldn’t normally bother with, including skirting boards and light fittings. If you have carpets, clean them with a professional carpet cleaner. If you hate cleaning or don’t have the time, you can hire a specialist cleaning company to come in and blitz your property so it’s sparkling clean within a day. The price of cleaning will depend on the size of your home and the different cleaning tasks you need, but cleaning services usually start at around $25 an hour.
Make sure any clutter is put away out of sight and don’t leave things lying around. A home that looks “lived in” is not as appealing as you might think and gives the impression of insufficient storage.
Upgrade Internal Decoration and Furnishings
Applying a fresh coat of paint is one of the easiest ways to make your home look newer and cleaner. Stick to neutral colours such as white, grey, and cream so your property will appeal to as many potential buyers and renters as possible.
If the furniture is outdated, it may be worth updating this, too. You don’t need to spend a lot on furnishings—think cheap and modern. Basic pieces from Ikea or similar low-cost furniture retailers will do the job on a small budget. For example, you can buy a brand new sofa from Ikea for under $100 that will be fine for a rental property. You can also keep an eye out for lightly used pieces on Gumtree and other buy-and-sell sites that you can often pick up for an absolute bargain.
Furnishings are particularly important for short-term renters, who often won’t mind paying a bit extra if it means they don’t have to buy furniture.
Renovate the Bathroom
An outdated, dingy bathroom can be really off-putting to potential renters and buyers. A full bathroom renovation can be expensive. However, you don’t need to replace everything. At the very least, give the area a deep clean and repaint where it’s needed.
Re-grouting tiles can make a big difference, too. If the tiles are an old fashioned or unappealing pattern or colour, think about replacing them with plain white tiles. If you’re really on a tight budget, you can use inexpensive tile paint to cover ugly tiles.
You can also add some expensive-looking accessories such as soap dispensers and new fluffy towels to create that luxury lifestyle look on a small budget.
If your property’s floors are covered in old carpeting, it may be worth spending a little money to change it. Rental properties can also undergo a lot of wear and tear, so switching out the carpet for a more hardwearing option is a sensible investment.
If the floorboards in your property are in good condition, you may be able to sand and varnish them. Otherwise, laminate flooring is relatively inexpensive, easy to install, easy to clean, and scratch-resistant. Laminate flooring starts at around $25 per square metre. Ceramic or stone floor tiles are a good option for kitchens and bathrooms. Floor tiles start at around $30 per square metre. You’ll also need to factor in the cost of installation unless you plan to do it yourself—contractors typically charge between $90 and $150 per square metre to install ceramic tiles. If you want to go all out, we’ve come up with a separate blog on the many ways you can do flooring upgrades and renovations.
Update Your Kitchen
An outdated kitchen can be very unappealing to buyers or renters. However, it can be expensive to renovate the entire kitchen.
A cheaper alternative is to simply buy new, modern doors for your existing cupboards. Doing so spares you from having to deal with the hassle and expense of ripping out the whole thing and installing a new one. If your existing units are of a standard size, you can pick up new doors starting from around only $15 per piece, depending on size and material.
If you do feel like your whole kitchen needs an overhaul, it’s probably worth it. Dan Mulcahy, founder of the MCG construction group in Melbourne, estimates that a new kitchen can add up to $60,000 to the value of your home.
How the outside of your property looks is important, too. Make sure lawns are mowed, gardens are tidied up, and damaged fences and pathways are replaced or repaired. Even small outdoor spaces and apartments or condos with a balcony can benefit from landscaping (or skyscaping) by adding colourful flowers in planter boxes or practicing vertical gardening.
The appearance of your property from the outside can have a major effect on its value. Houses on “leafy streets” are estimated to be worth up to $29,000 more than properties with less greenery around. It’s really worth adding some plants and green areas if you can. You can get more ideas for landscaping your property here.
Take Better Photographs
It’s worth investing a little into professional photography for your property to give a better first impression. Good quality photography can make your property look bigger, brighter, and is particularly important for sale properties. Better photographs can increase the number of people who want to come for a viewing and can even increase the price you can get for sale or rent.
It’s also a good idea to “style” your property before taking photos by adding, for example, fresh flower arrangements and setting the dining table out with placemats and table wear.
Put Effort into Marketing
The more people who know about your property, the better the chance you have of getting a good offer. Don’t just slap up a basic description of your property and hope for the best—think of how you can sell it by promoting its advantages, such as proximity to schools, transport links, and other amenities.
You should also list your property with several different agents and consider advertising it privately on local community noticeboards. You never know who might be browsing the area in search of a new place to live in.
Make the Most Out of Your Investment
If you’d like more guidance in terms of making the most out of your investment property, please don’t hesitate to seek advice from financial experts. We at Clever Finance Solutions are more than happy to help you out with the different aspects of property investment, improving your investment portfolio, and in making the right financial decisions. Contact us today and let’s get started working on pointing you to the right financial direction.