Renovate for Wealth: Top Tips for Active Investors to Maximize Property Value and Increase Equity
Renovating a property can be a great way to increase its value and generate wealth as an active investor. However, there are certain "do's and may be nots" to keep in mind to ensure you get the most out of your renovation and maximize your profits.
Consider the location: Location is a key factor in real estate value, so it's important to
consider the neighbourhood and surrounding amenities when planning your
renovations. Make sure your upgrades fit with the overall style and value of
the area. Consistency with a bit of a twist is a great idea but don’t create a
finished product that is unusual for the location. Eg if the area has mostly
single storey dwelling then don’t add an additional floor level. If the location
is full of garages, your new carport might not be what buyers want.
Focus on the biggest return on investment (ROI): Prioritise renovations that will yield the biggest return on investment, such as kitchen and bathroom upgrades, as well as outdoor spaces like decks or patios. This will help you maximise your profits and get
top dollar for your property. Buyers perceive these areas are expensive and
might avoid your property if they haven’t been renovated. Adding a bathroom and/or
a bedroom especially if there is space within the existing floor plan can add
$1,000s of dollars to the value of a house.
Avoid Over Spend. It’s important to also not over spend on fittings – luxe appliances or high end tiles may not bring you buyers who are willing to pay more for the high quality
finishes.
Keep it neutral: When it comes to design and decor, it's best to keep it neutral and appeal to a wide range of buyers. Avoid bold or overly trendy choices that may turn off
potential buyers. It’s best to appeal to broad taste and add colour and texture
with your furnishings. Colour is such a personal choice and can turn off buyers.
I can’t count the number of properties I’ve inspected where I’ve seen bad
colour choices in wall tiles and paint devalue a property.
Don't overlook energy efficiency: Incorporating energy-efficient features like smart thermostats or energy-star rated appliances can be a selling point for buyers and help reduce long-term operating costs.
Don't forget about functionality: Make sure the renovations you make are not only aesthetically pleasing but also functional and practical for potential buyers. Spend time
understanding what buyers want. Talk to agents to uncover the main buyer
objections and wishlists for properties in your area. Look at sold properties and
compare prices by the features they have.
Be realistic about the timeline: Renovations can take longer than expected, so be prepared for delays and unexpected expenses. Set realistic expectations and factor in some wiggleroom in your timeline and budget. Always plan contingency in your budget andsched ule.
If you're interested in investing in property and want help with your property-buying strategy options, I'm offering a FREE 45-minute Strategy coaching call where we'll create your custom game plan to set you up for success in 2023.
I will be doing these calls on a first-come, first-served basis so if you're interested, please click https://bit.ly/GoalBreakthrough to schedule your call now.
