New year, new place? Purchasing an investment property can be an exciting time, but there are a few things to consider. How do you maximise profit? What should you prioritise? Where you do even start? Though vacancy rates in Brisbane have declined in the past 18 – 24 months (Place Advisory) it’s still more important than ever to ensure your property meets the demands of the market.
Before you stock up at Bunnings and begin knocking down walls, listen to the experts and find the best way to maximise your investment. To help, we’ve compiled a list of our top tips for when you do-up your investment and make sure you get a premium return.
Set a budget… and actually stick to it
You might want to get rid of the blinds, rip up the carpets or get that old sink to the tip. However, if you’re serious about your investment, you should analyse every cost versus the benefit and the value you get out of it. Renovating for a profit is about much more than putting lipstick on a pig; it’s about carefully about adding real value.
Remember the Goal
Just like your budget, being clear with intentions will aid the process. Remember: you’re not renovating for a growing family, the goal is to renovate, secure tenants and see a return. When doing this, you need to know what the market demands in that area and capitalise on that.
Saying that “Investing in your investment is important to keep the property rentable and increase the potential rental yield. If you need an insight into what the market wants, it’s worth talking to your local leasing agent. They are going to be on top of trends and tell you exactly what the market is looking for.”
Repair what needs repairing
Even before you think of making the place look good, it’s vital that all the necessities are functioning and in order. As a landlord, the last thing you want are constant issues with your property because it wasn’t fixed in the first place. The key is to do it once and do it well.
A fresh coat
Looking for the cheapest, quickest and easiest way to add value to a property? “Apply a fresh coat of paint – without a doubt”. Most people dream of having a beautiful new home to live in and sometimes a fresh coat of paint is all it takes to transform a tired home into a stunning new abode. Potential tenants may see the property as being newer and could potentially be willing to pay more. “Afterall, a bright, clean, freshly painted house or apartment is far more appealing than a dingy dirty one.” It’s a simple tip, but it could make your investment all the more successful.
Update kitchen and bathrooms
Once these basics are done or if it calls for it, the best way to increase value and yield is to update the kitchens and bathrooms. “Bathrooms are an area that buyers demand to be modern and clean.” It can also help to add a powder room if the toilet is inside the bathroom.” When it comes to the kitchen, “Clean, modular kitchens can be a cost-effective way to increase the liveability of a house or apartment.”
“Don’t overlook the simple ways to add value to a home, it’s the small things that can mean the difference between securing a tenant quickly or not. Consider dishwashers, ceiling fans, air-conditioning and fly screens. These might be household features you take for granted, but they can make or break a property in the rental market.
Whether you’ve just purchased an investment property or you’re considering buying one, it’s important to remember that you’re in it for the long run and a considerable amount of money will be invested. So, don’t sit back and hope that the market earns you a return, proactively invest and add value in small ways.”
If you’re looking to invest or already have, these tips are sure the help you maximise your rental property investment. On top of this, at Place Estate Agents are industry professionals who are always ready to help. If you want more advice on where to invest your money in your investment, talk to someone in our team today.
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