To make sure your renovation adds value to the property, you first need to know the fastest and least expensive methods to multiply every dollar you spend on your renovation.
Renovating areas that increase first impressions, ie kitchen and bathrooms, painting, floors and gardens helps add value to a property. When done strategically, even small improvements can add significant value to a property. A simple exterior paint job alone can easily add to the end value. It’s knowing how to renovate that gives you equity. This applies to your existing properties and home as well as to new investment properties.
How can you manufacture equity?
1. Selecting an area with above average capital growth
2. Buying below market value
3. Adding value through strategic renovation
When done right, an investment property can provide security for your future, quietly paying itself off for you to reap the benefits later on. Particularly in Broome with our prices as favourable as they are today and our vacancy rate slowly reducing – now is an ideal time to secure a new home or investment before prices increase again.
But to add value through strategic renovation you have to know what you’re doing…
It’s all about renovating to suit the tastes of your potential buyer or renter and not your own personal tastes. This is an area where so many people have difficulty, but the important thing to remember here is that you are not your buyer. You need to cater to what the majority of buyers in your area are looking for and to the broadest possible tastes. So, with the serious stuff out of the way, let’s look at where real value can be added.
Painting probably generates the highest return of any work you can carry out on a renovation. Repainting can dramatically change the look and feel of a property, as well as substantially increase its value. When choosing colours choose only a few colours and keep them light and neutral. Remember: It’s not about what you like; it’s about appealing to the broadest possible market (the ‘buyer’ in your market). Light surfaces are the quickest way to create a light, bright and clean-looking space. Resist the urge to do ‘feature walls’.
Repair - before you rip something out and throw it in the skip, ask yourself: Can it be repainted? Does it really matter if the laundry shelves are not brand-new? Or if the inside of the wardrobes aren’t completely up to date? Often, it doesn’t. Floors and Carpet - If painting is the highest return item, then it is closely followed by floors and new carpet.
Give Your Home “Curb Appeal”
Studies have shown that a large percentage of buyers decide whether or not they are going to buy a home before they even set foot in a house. That is why it’s so crucial to make a good impression by creating a welcoming entrance to the home. Even if your home is in good shape, there are probably a few things you can do to make it really sparkle. This is what’s known as “curb appeal,” and experts agree that making a good first impression is a crucial factor in attracting buyers.
Improving your home’s curb appeal can be as easy as:
- Tidying up the yard
- Mowing the lawn
- Washing windows
- Touching up exterior paint
- Adding plants
Entrance to Your Home - the first impression on approaching your home is also very important. Create a clean, light and welcoming entrance to your home. If the entry is dark, then consider an optical illusion like using half-strength paint (of the same colour you are using in another house) in this area to give the appearance of it being lighter.
You can also:
- Install a new front door
- Install a new handle
- Place plants on either side of entrance.
If you’d like some assistance in deciding whether a renovation would add value to your property to sell or lease get in touch with our team here.