4 Ways to Improve the Value of Your Investment Property

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Posted on: 10 April 2019 by Emma Parsons

As the national and international housing markets begin to slow, there’s more incentive than ever to branch out and look for a few ways to improve the value of your investment property.

As the national and international housing markets begin to slow, there’s more incentive than ever to branch out and look for a few ways to improve the value of your investment property.

Whether you’re interested in an improved value when it comes to selling or a boost in rental returns, there is a whole suite of different things you can do to raise your property’s value. Some investors have turned to the addition of a swimming pool, upgrading a kitchen or even having extra rooms added to their homes to boost their property value.

However, there are a few less complicated and inexpensive ways to improve the value of your investment property. Let’s take a look below.

 

Start in the Bathroom

Both renters and buyers will be drawn to the bathroom of your home more than any other room in the house. It’s the one space that should provide complete and utter relaxation. If your bathroom doesn’t present a tranquil, inviting atmosphere, then it’s time to change that.

For under a thousand dollars you can vastly change how your bathroom looks, and in doing so, increase your rental or sale value.

A few things you need to add to your bathroom to-do list include:

  • Repainting in a light, airy colour.
  • Removing all signs of mould.
  • Adding a new vanity.
  • Installing all-new, modern tapware.

If done correctly and on a strict budget, you can expect these upgrades to cost around $1,000 and return anywhere from $20 a week extra in rent or a few thousand in sales value. In the case of selling your investment property, it can be a good idea to consider online marketplaces, such as Roofstock. Selling this way means you can do it all online without having to stage an open house, meaning you can leave your tenants in place, or make your final improvements while your property is listed.

 

Install Modern Flooring

Gone are the days of yellowed carpets, late 90s ever-dirty tiles and cracked or split timber flooring. In the age where faux floors are just as elegant and realistic and the real thing, it’s a better time than ever to install new flooring.

Take a look around your home and determine which rooms need the most TLC in regards to the flooring. The most common spaces are the living rooms, open plan study rooms and theatre rooms.

If you have carpeting in any of these rooms, pull it up. However, if you already have solid tiled or timber floors you can simply lay down your new flooring with little effort! Modern laminate flooring panels look just like the real thing and stick down overtop of old tired floors. A big return with very little effort.

Expect to pay around $1,000 for these improvements too and you’ll receive around a $10 to $15 weekly rental boost. 

 

Add a Shed to Your Backyard

A multi-faceted addition to your home is the backyard shed. These are a fantastic addition to your home when it comes to improving value as potential renters and owners are able to use the shed for more than just storage. If you invest in a shed large enough for it to be transformed into a hobby shop or man cave, then you’ve essentially added a life space area.

Retailers like EasyShed have countless options for your backyard shed and they’re affordable enough to not put a dent in your savings account.

One of our biggest tips here is to make sure that you choose a shed that isn’t just going to meet the bare minimum for potential buyers. It has to be a space that could be used for various activities as we mentioned above. This way you’re able to showcase your backyard as a versatile life space.

The average cost a man-cave-sized shed sits at around $1,500 to $2,500 which could see your home’s value boosted by $10 to $20 a week.

 

Add a New Coat of Facade Paint

Over the course of your property’s life, the facade paint will fade, stain and wear which is problematic considering the facade is the first thing anyone entering the property will see.

To give the best first impression, a rich and vibrant coat of paint on your home’s facade is going to have buyers or potential renters understand that you’re taking the time and making the effort to keep your home up to scratch, which will essentially improve value.

Consider spending around $250 on a new exterior coat of paint and you’ll be able to expect an overall boost to your property’s rental value of $10 to $20 per week.

 

Making improvements, even small and simple ones can eventually add thousands of dollars on to the value of your investment property in rental or sales yield.

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