The beginning of the financial year is the perfect time to set some financial goals and turn your mind to building wealth for the future. For example, undertaking renovations that will increase the market value of your investment property. Whether you’re planning to put it on the market or leverage its value against further investments, renovations can be an effective way of adding to your asset base. A newly renovated property is also more attractive to tenants and can command higher rents.
Not all renovations are created equal though, so we’ve put together a guide to the renovations that add the most value.
1. The kitchen
Kitchens are the heart of the home, and the first thing both buyers and tenants will look at when inspecting a property. In an era when most buyers are looking for an already finished home rather than a doer-upper, a modern kitchen is a definite selling point.
It’s probably not necessary to go all out with top-of-the-range appliances and marble bench tops: you’re unlikely to see a return that matches your outlay. Instead, focus on upgrading cabinet doors and handles, replacing tired old laminate bench tops with an inexpensive stone and swapping out tired old appliances and sinks with something more modern. If you can keep the footprint of the kitchen the same, you’ll save on labour costs and still achieve a fresher look.
2. The bathroom
Next to the kitchen, the bathroom is where a little love goes a long way. Buyers and tenants want to feel comfortable and pampered in their bathroom, so a rust-stained bath, leaking shower or cracked tiling are major turn-offs.
To save money, try and keep the original layout and plumbing outlets. Replacing the vanity and shower head are inexpensive instant fixes, alongside new tiling and a fresh coat of paint.
Shabby old carpets and worn-through linoleum can seriously drag a home’s aesthetic down. As with any renovation you undertake, there are more and less costly options to choose from.
For an investment property, it’s even more important that you choose something hard wearing and easy to keep clean. Stick to hardwood flooring in the living areas. If you don’t have timber floorboards, there are a wide range of floating floorboard options to choose from at a variety of prices. Tiling is the most practical option for kitchens and wet areas, and while you may want to stick with carpet in bedrooms, make sure it’s a stain resistant variety. Stick to a single neutral palette for a modern look.
Painting your house might not count as a renovation, but it’s so cheap and effective that it deserves to be included nonetheless. You can hire professionals to do this job or pick up a paintbrush yourself. Whichever you choose, paint is one of the easiest ways to bring a fresh, clean feeling to your interior.
5. Street appeal
First impressions count and putting a bit of money into your frontage will impress people right off the bat. Keep the front of your house clean with a power wash and fresh paint if necessary, make sure the garden is well cared for and replace old blinds with something new and modern. Fencing should be in good repair, as should driveways and footpaths.
By investing in a visible renovation, you’ll be in the best place to get the most out of your investment property for years to come.