Owning an investment property for a number of years so it grows in capital gains isn't the only way to see returns on your investment. In the short term, renovating the property can be an additional tactic to boost the appeal of the property, adding to it's value.
Renovating your property can range from a quick lick of paint to lift the mood, to an in depth structural change. Either can help investors add instant value, and even potentiate a greater return on their investment upon resale.
Simply replacing weathered and outdated features of the property like the wallpaper, fittings and storage areas, even changing the colour scheme can make a big difference to the look and feel of a property.
Modernising the property to better suit your intended buyer or tenant demographic such as new wardrobes, open plan living or upgrading the kitchen and bathroom can seem like a great option to add value. However, it’s important that you remember to double check that the cost of your desired changes isn’t more than the value it will add to the property before you jump into any significant renovation plans.
To minimise this risk, consider getting an expert to help with the project. Property consulting experts like real estate agents and property valuers can help you determine whether the $10,000 bathroom renovation you have planned will add enough value to your property to warrant the effort and money put into it. If the research shows your planned renovations aren’t going to improve the value of your property too much then it allows you room to modify your investment and renovation plans before commencing.
Once you’ve decided on your plan of action, turn your attention to how you intend to fund the renovations. Depending on how intensely you plan on renovating, there could be a range of options to consider such as a personal loan, line of credit loan, loan top up or even a construction loan.
Borrowing a little bit extra now could allow you to complete some cost effective renovations and increase the value of your property in the near future - on the other hand, a fresh coat of paint could do the job as well!
Complete the contact us form above, or give us a call for help funding your property improvement ideas 02 9358 4855