If you have an investment property or are on the market to invest in property then you may be wondering how you can make the most of your investments and add value to your investment property or property portfolio.
Here is a list of six ways in which you can add value to your investment property with a little financial injection.
How can I pay for these investments?
When you think about making investments into your property, you may wonder how you will pay for them, as many of them will cost tens of thousands of dollars.
The good news is that lenders such as Sherman Bridge Lending offer hard money loans which can be used to invest in a property to ensure you get the best return on your investment property.
So, if you get the cash, what do you need to spend it on to make sure you get the best return possible?
Work on the Aesthetic
The first step is to make your home more visually appealing. That means working on your home staging to show potential buyers the potential your home has. Home staging has the potential to add value to your investment property by between 1 and 5% according to some selling agents.
That does not mean spending so much money on projects that any potential value increase will be swallowed by the costs of the renovations. Focus on one or two rooms. Typically, kitchens and living spaces can add value to your investment property.
Increase Space
The bigger the home, the more money your property will sell for. So adding more square footage to your home can significantly add value to your invenstment property.
Are there some walls that can be knocked down to make the place feel bigger? Is there potential to add another bedroom or bathroom to an unused space?
Whatever you choose to do, be prepared to maybe not earn as much back from your investments as you spent. However, keep in mind the value you will have added.
Make it energy efficient
Listing energy efficiency in a home sale listing makes the home more desirable. People want to spend less on their heating bills, as well as having the knowledge that they are doing their bit to save the planet.
So spend the money on working out the efficiencies on heating and cooling, windows and doors, and energy-efficient appliances. Check with your local appliance companies in your area to find the best deals on energy-efficient appliances before you buy.
Your power provider can do an energy audit on your home usually at no cost to you and guide you in making changes to making your home more energy-efficient. This can definitely add value to your investment property and provide a more energy-efficient home too.
Update appliances
Having updated appliances will ease the mind of a potential buyer and, therefore, add value to your investment property. Ensure that the systems and appliances in your home are fully functional and up to date. That’s giving the air conditioning service. Check the plumbing, too.
All of these things will make sure that you get offers as close to the asking price as possible.
Add technology
More and more people are becoming increasingly interested in buying homes that come preloaded with gadgets. In fact, some people have even said that potential buyers will prefer to buy homes that have smart features such as thermostats, fire detectors, smart locks and lighting systems previously installed.