As a real estate investor, you're looking for ways to increase the value of your properties. First, you've spent some time selecting properties and creating an ideal portfolio. Now, let's think about ways to increase the value of that investment property. There are many ways to do so, depending on your end goals. Let's look at some of the best ways to increase the value of your real estate.
If you are interested in renting your property out to people, curb appeal is one way to boost your possible income generation. Many Australians rent from private landlords, and scout for their next home online. In fact, 26% of households rent from a private landlord across the country, according to the Australian Bureau of Statistics (ABS). With such a high rate of private rental agreements any edge you can have over the competition is important. Here are some examples:
Because more renters, both short-term and long-term, are likely to view the property online before committing to visiting it in person, curb appeal is more important than ever.
Even if the house or unit is older than ten years, there are ways to make it seem more modern and appeal to a higher-income clientele. One of these ways is to upgrade some of the appliances to more updated versions. For example, potential renters or buyers are liable to take a look at the quality of the dishwashers, heaters, and air conditioning units before making a final decision. Investing some of your income back into the internal appliances can actually increase your ROI in the long run by boosting the value.
Depending on your flexibility, taking the time to renovate the bathroom or kitchen can really impact the overall value of the real estate. According to OpenAgent, simply upgrading the kitchen has the potential to add up to $20,000-40,000 in value to the house. And the bathroom is also a good place to increase the value. From new flooring, ovens and backsplashes, giving these areas a facelift could come back to you in the future as an investor.
Not all properties should be treated the same, and the investor should take the time to make improvements based on what the local area requires. For example, one property might require higher-efficiency air conditioning units because the weather is typically warmer. If you own real estate near the coast, you may need to repaint the house more often due to the environmental erosion that is likely to occur. Property management companies can help with this kind of attention to detail.
Are you ready to connect with investment experts? Reach out to Ray White Surfers Paradise today to get started.