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The Five Absolute Best Ways to Add Value to Your Home or Investment!

Finding a home or investment property with “value-adding” or renovating potential is a great way to increase your equity.  For each dollar you spend on renovating you should aim to increase the property value by a minimum of $1.50 to $2.00. The key thing to keep in mind is to not over-capitalize and it’s important to renovate to a standard that is suitable for the suburb.

Here are five sure-fire ways that you can rapidly increase the value of your property.  As with any renovation project, make sure you scope out the costs and benefits first before jumping headfirst into a project.  Your time spent planning up front will pay handsome dividends at the end.

Add a Bedroom
This is one of the best methods to increase rental yield and increase the property’s value.  Look for properties where a flexible floor plan enables you to move a couple of internal walls or enclose a large balcony area within the roofline of the house. 

Add a Granny Flat (mini-home)
Since the state government introduced more flexible rules for allowing granny flats to assist with providing lower cost housing, this has been an extremely popular and effective method to create a positive cashflow investment. 


Kitchen

The hub of the home is the kitchen.  This is where all the action happens every day, so it makes perfect sense to upgrade the kitchen to a modern day standard. Fresh clean cupboards and benchtops, new appliances, good storage and lighting are essential.  An island bench can add wow factor and glass or mosaic tile splashbacks can add style.




Bathroom

Another important room in the house that creates an impression is the bathroom.  “Daggy” and “out-dated” bathrooms do not impress valuers or tenants so it is important to get this room to the right standard to maximize rent and value. Renovate the bathroom with light and bright clean colours. Larger rectangular tiles laid horizontally make the room look larger. A free-standing bath can create an amazing wow factor if there is enough space, along with semi frameless or frameless glass shower screens.




Subdivisions

One of the ultimate ways to increase equity is to find a property with subdivision potential.  You need to find a large block that can be split into two or more blocks. *Be sure you understand the entire subdivision process before embarking on a subdivision strategy.*

While there are handsome profits to be made, there are plenty of traps for the unwary – these include dealing with issues like subsidence, stormwater run-off, easements, covenants, sewerage, water and electricity access. Finding a profitable subdivision site is hard work which takes countless hours of searching, calling agents, talking to council and negotiating. 

Whatever your chosen strategy, I recommend you get independent and expert advice to help you along with each step.  Pick a strategy that works for your situation and helps you move toward your property goals. Ensure you have your finances in place and create a buffer in case of delays or over-runs.  

This article was written by Rich Harvey, founder and Managing Director of propertybuyer, Sydney & Australia’s most awarded Buyers Agents.

 

Thinking of Buying an Investment Property or Home? Think Sutton!   Let Sutton Take The Stress Out of Buying!

Sutton Group Real Estate 
Toronto 416-896-3333 • Mississauga: 905-896-3333

Posted: Wednesday, August 06, 2014 4:30 PM by Sutton Realty

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