Many Newcastle & Lake Macquarie investors are in the mind frame that a good way to add value to an investment property is to hold onto it for a number of years, allowing the investment to grow in capital gains. Another option is to take a short term approach and to renovate the property for a profit.
Property renovations, ranging from a quick cosmetic face lift or a more rigorous structural change, can help borrowers add instant value to the home and potentially enable them to make a greater return on their investment during resale.
While this might sound like a great option, before you draft your renovation plans it’s a good idea to investigate whether you can achieve your desired renovation without over capitalising on the investment, that is, when the cost of the renovation outweighs the value it will add to the property.
Consulting experts, such as a property valuer and real estate agent will help you to determine if your $20,000 kitchen renovation will add enough value to your property to warrant the expense and the effort. If the research shows that your intended renovations are unlikely to live up to your expectations, it gives you an opportunity to modify your renovation and investment plans.
Once you’ve settled on the plan of action, it’s important to turn your attention to how you intend to fund the renovations. Depending on the scale of changes, there may be a number of different finance options to consider such as a loan top up, personal loan, line of credit loan or even a construction loan.
To learn more about the nuts and bolts of renovating and the finance options available to help you make your plans come to fruition, contact Richard Windeyer on 1800 01 LOAN or click here to "Book a Meeting"