Property owners don’t have to wait for a hot real estate market to boost the value of their home or investment but can instead take positive action to create value for themselves.
February’s Australian Property Investor magazine outlines 37 tips and techniques for adding value to your home or investment property.
The Reno Kings have given each strategy a rating out of five for its ability to add value to your property. Some of the top-rated techniques include:
Paint “Painting the exterior of a house adds all-important street appeal,” says API editor Eynas Brodie. “And fresh paint on the inside also gives a property a real lift. The key is to choose colours and tones that won’t date or go out of fashion. Painting will probably cost $5,000 to $10,000 and should add at least as much value as it costs. Done right, it should add more.” Reno Kings rating: 5 stars
Add a bedroom “If you’re able to cheaply add an extra bedroom to your property, that will immediately add value to the property and if it’s an investment you’ll get the added bonus of added appeal for renters,” Mrs Brodie says. “In some situations adding a bedroom can be as simple as tacking up two walls to separate off part of an extra large lounge room or rumpus room. In some situations, you may be able to add $60,000 in value with a renovation that will cost less than $10,000.” Reno Kings rating: 5 stars
Add a deck “Depending on your location around Australia, a deck can make your property more saleable and also add considerable dollars to its value,” says Mrs Brodie. Reno Kings rating: 4 stars
Kitchen and bathroom renovations “Homebuyers put a lot of focus on the kitchen and bathroom areas when they’re inspecting a home,” says API editor Eynas Brodie. “If yours are dated or daggy it can really count against you on the balance sheet. Done right, kitchen and bathroom renos don’t have to cost an arm and a leg. If the carcass of the kitchen is okay, you can add a new benchtop, fresh cupboard doors and new fixtures and the place will look brand new. With a little imagination and a lot of shopping around, renovators could potentially add more than $10,000 in value for around $5000. Bathrooms are much the same – you don’t need to go overboard but something clean and fresh will attract buyers.” Reno Kings rating: 4 stars
Clean and declutter “Cleaning and removing clutter from your property is the simplest and cheapest task to undertake when it comes to adding value,” Mrs Brodie says. “But it can create a major impression, making the property look larger, newer and more appealing.” Reno Kings rating: 4 stars
Subdivision “If you can buy a block that’s ripe for a subdivision project, you can earn big dollars by cutting the property in half and selling off one side,” Mrs Brodie says. “Even the simple act of gaining development approval for a subdivision can add immediate value.” Reno Kings rating: 4 stars
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