If you are a big fan of the real estate fair Like it or list it? Chances are you’ve had your jaw pulled at times after learning how much the value has skyrocketed after several changes have been made to the property.
But as well as providing Australians with a daily dose of real estate obsession, the show teaches investors a good lesson.
Ultimately, an investment property is what it entails: an investment. And like any investor, you may be looking for capital growth over time while earning the best possible return.
So how do you increase the value of your real estate investment? You don’t have to rely on TV magic to make it happen — here are some practical ways to do it.
Ways to add to the attractiveness and value of your investment property
1. Regularly clean and maintain your property
Cleaning your property might seem like something every responsible property owner should have on their list, but few still overlook this simple tip.
Ensuring your property is clean (inside and out) and free of any unpleasant odors will have an immediate positive impact on your property value, as it will give potential tenants or buyers the impression that the property is well maintained.
Routine cleaning will also help you keep track of any problems on the property. Remember that small things can quickly turn into bigger issues, so it’s important that you address any maintenance issues quickly, as leaving them unresolved can snowball into larger issues that can have an impact. on the overall value of your property.
2. Add a new coat of paint
You’ll be amazed at the difference a fresh coat of paint can make to the overall look of a property. It can revive and brighten up a tired space and also help make it attractive to onlookers.
When choosing a color, it is advisable to choose 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 floor
Another easy way to increase property value is to update carpeting or add hardwood floors or tile. After all, no tenant or buyer wants to live in a property with badly scuffed floors or dirty carpets.
If you have carpets, have them professionally deep cleaned or take the time to thoroughly clean them yourself. If you have floorboards, consider sanding them down and recoating them to give them a new shine.
4. Update the kitchen
A functional, modern and visually appealing kitchen is one of the main selling points of a property, as it is the center of a home for most people.
Therefore, if your kitchen is on the edge of the outdated spectrum or gives off a tired vibe overall, it could prove to be a major detractor to your overall property value.
Before thinking that it will cost you a lot of money, we do not suggest that you do a complete renovation of your kitchen. Keeping your investment fresh and modern doesn’t always mean you have to undertake a full-scale renovation project.
To start, you can choose to change or improve only certain parts of the room. It can be as simple as painting old cabinets, replacing doors, or adding new doorknobs. You can also have the worktop and splashback replaced if they are badly stained or chipped. Also, be sure to upgrade any faucets that are old, leaky, or appear rusty.
5. Transform the bathroom interior
Similar to the kitchen, the bathroom can be one of the most expensive parts of a property to change due to the expensive elements of the space including plumbing, showers, and custom surfaces.
But updating your bathroom doesn’t have to be an expensive undertaking. If your fixtures and fittings are still in good condition and working, you can instead focus on replacing existing faucets and towel rails with more modern designs that can give the bathroom more appeal.
New cabinets and handles can also add immediate value. If it’s not in your budget, you can consider repainting it.
If your tiles are dirty and refuse to move with a routine cleaning process, you can choose to have them resurfaced or replaced.
For added visual interest, introduce greenery in the form of potted plants and consider installing paintings or other art installations for a decorative touch.
6. Create curb appeal
If you are about to sell your family home or fill an upcoming vacancy and prepare the property for new tenants, investing in a beautiful frontage will definitely add value. After all, it is the exterior of a property that buyers and visitors see first.
But don’t think that increasing your property’s street or curb appeal has to come with a hefty price tag. Simple changes can also have a big impact. Done right, even the smallest effort can increase the value of your property tenfold.
Here are some ways to build curb appeal without breaking the bank:
- Installing a mailbox
- Fence repair or replacement
- Trim trees and foliage around the property
- Plant trees and seasonal flowers in the front yard
- Addition of exterior lights
- Cleaning your driveway
7. Spend more money where it really adds value
If you are looking for higher return projects that are also more expensive, be sure to spend money where it adds money and makes a real difference in rental income or the selling price you can command . These include:
- Complete kitchen and bathroom renovation
- Addition of a laundromat
- Installation of air conditioning units
- Provide off-street parking
- Add a patio or outdoor seating for barbecues
- Solar panels that will reduce electricity bills
- Adding cameras or security systems
Remember, if your investment property is a unit, stick to your layering plan. If so, you may suggest making larger improvements to the entire building to increase the value of your property. For example, tenants will often pay more for a security building, a swimming pool, or one with lovely communal gardens that they can use.
At the end of the line
One key thing to remember is that while you want to improve your property and increase its value, don’t go overboard and improve too much. It is not advisable to spend a sum of money on a renovation where you will not see a return on your investment. To ensure your property will always be within the price range of similar properties in the area, do your research or speak to a local real estate agent for professional advice.
It’s also best to make sure your renovations and upgrades are all compliant. If you need permission from the board, you should make sure you get it. If you make major changes to your property that are not approved by your local council, it will be an exhausting mistake.
Last but not least, be patient. Of course, capital growth can occur within months or weeks, and the value of your investment property could skyrocket immediately. Likewise, rents in your area may increase in the first 12 months after purchase, which means you have every reason to demand higher rental prices.
But in reality, real estate investing is usually a long-term proposition. It may take some time for the market to fluctuate and for your real estate investment to pay off. With this, remember that patience is the key.
Disclaimer: The information provided is for guidance and informational purposes only and is not a substitute for independent investment or financing advice, which we strongly recommend.
Smart Property Investment provides Australian property investors with much-needed information, strategies and real-world experiences to help guide successful buying and selling decisions in the Australian property market.
Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.