As a real estate investor, you have to make sure that the value of the property you buy goes up. That is why you have to take care of it and add improvements to it so that the price wouldn’t drop. There are multiple expensive and less expensive ways to do this, and there are many things you have to take into account. Follow this article to learn what to do.
How can you make your property perform better?
1) High-cost improvements
If you want your property to perform better you first have to invest in it. There are always average or high-cost renovations that can be made. It all depends on how much you are ready to spend, and what kind of materials you use. Remember to always invest in the parts that are most likely to break. Follow some of the tips from Mynd.co to know what to watch out for. Whatever you choose, don’t be afraid to spend a little because it will pay off in the end since it will add a lot of value to your property.
These changes are concerning both the inside and the outside of your property and concern both aesthetic and practical repairs. Here are some of the things you could do:
- Change the flooring with carpets, hardwood or tile adds.
- Change/add windows and doors. Consider better materials for windows and doors like PVC because it’s more reliable. Take care of both the inside and outside of the property like cleaning the oven, disposing of any garbage, dirt, smell, etc.
- Reducing noise will create a more wholesome atmosphere inside. Install double window panes, add insulation, etc. Carpets can also minimize footsteps. Plants also absorb noise.
- Add more square footage by finishing up the places in the house that are still not done (attics and basements).
- Update the kitchen and bathroom since it’s very important that all the electronic machinery is in tip-top condition.
2) Low-cost improvements
Not every property needs to be redone and remodeled to make it perform better. Some of the houses need minor improvements that will surely make them more valuable. Remember that doing these low-cost upgrades can help you prevent the need for major repairs. The important thing is that you can do these fixes yourself without hiring outside help. Here’s what you can do:
- Keep your place clean and it will have a bigger value. Take care of both the inside and the outside of the property like garbage, dirt, smell, etc.
- Change certain fixtures like a light switch cover, cabinet handle, or doorknobs and get better airflow and cooler temperature output.
- Stage it well by placing the furniture so that the rooms look bigger. The size of the furniture and other elements should be compatible with the room size. Never put too many things inside a room.
- Paint the house to give it a more appealing look, while protecting it from water leakage. Painting the walls creates a much more wholesome atmosphere. Use neutral colours.
3) Don’t go over your head with improvements
Big investments can, of course, enhance the value of your property, but you should not over-improve it. You first need to realize the class of people you are targeting as potential buyers or renters, and then decide what kind of renovations to do. For example, a very expensive renovation for a house that is in a middle-class neighborhood is not a good idea since it could scare off potential customers. People from this class won’t be able to afford the property if it becomes too expensive due to all the improvements.
You should first find out who you could sell your house to, and then also see how much it will cost after it has been renovated. After you’ve done that, start the improvements and remember to put out your health and safety signs to warn others of the potential hazards around your home while these improvements are happening.
4) Make sure you invest in a good location
People are hesitant to buy property in a neighborhood with a bad reputation. That is why you should always check out the area before you invest because no matter how much you spend on creating a high-priced house it will be a pain to sell it if the buyers are too scared. Have a look at vacation rentals on my-rental-homes.com to get an idea of how much a property sells for in the area you are looking for.
In those cases, the only way to sell the place will be to lower its price, and you don’t want to do that after you’ve already spent money on making it better.
Always look at, not only what but also where you are buying it. It’s not just the neighbors and crime you’ll have to worry about. If you invest in a house that belongs to a poorer part of the town, there is a possibility that the infrastructure is also not up to date. That means that it will require major repairs that may not even be enough because the initial problem lays in the city government.