We outline 9 renovation ideas to consider when planning your property refurb. Find out how to add value and appeal to your investment property...
When you are thinking about the resale value of a house it’s well worth considering all the changes that can be made to improve that homes value before the sale. From minor changes like refreshing it with a lick of paint on the window sills to big renovation ideas that involve completely gutting the property and starting afresh.
There is a careful balance though to be made when making these choices. Spend too much money and you won’t recoup your costs – let alone make a profit on the sale of the property. Spend too little and you could miss out on money that is there for the taking.
In this article, we outline 9 ideas to think about when planning a property renovation to add value to your investments and increase your profits.
Weirdly many people overlook their flooring. But it can be an easy way to make spaces feel bigger. Think about tearing up old carpet and putting in wood flooring. Instead of opting for expensive hardwood flooring though, look at cheaper alternatives that offer the same if not better results without the price tag such as faux hardwood flooring, or bamboo flooring for example.
These options are not only cheaper but are easier to care for and can last longer than the real thing.
Read: What’s The Best Flooring For A Rental Property?
Paint can say some powerful things. A fresh lick of paint is an easy, cheap, and quick way to renew the look and feel of a house. When repainting try and go for neutral colors. This allows people to easily imagine the space they want to create. Light neutral colors also make spaces feel larger, lighter, and more open.
Related: 10 Maintenance Jobs Landlords can do Themselves
Most houses have something about them that makes them stand out. Highlighting those unique features – whether that’s the old hardwood flooring that’s been hidden under carpets for years, or exposing some brick around the fireplace. These simple things in a remodel can add tremendous appeal and value to a property for very little investment.
The kitchen is one of the most important rooms ina. a property and if you’re looking to add value to your investment property you should carefully think about what could be improved in the kitchen and how. However, once again, often you won’t recoup your costs from larger refurbs according to this cost vs. value report.
Instead, think about doing a smaller to mid-range remodel.
Begin with a fresh lick of paint, not just on the walls though. You can refresh old, tired cabinets with a splash of paint too. Add in a splash of color here and there with some new tiles as well, behind the cooker for example.
Replace old appliances with some glistening stainless steel. And match the cold steel look with little things like light switches or cabinet handles to give the room a more tied together feel.
Think about your surfaces, but don’t get carried away with granite – which, while desirable, is unutterably expensive, and you won’t recoup the costs on it.
A final note is that people love islands!
Bathrooms are often overlooked but we have good reason to believe that it’s one of, if not the most important remodel in a house.
When it comes to remodelling the bathroom, you don’t have to go crazy. Think about functionality, keep it simple and clean, and use sparkling faucets to draw people’s attention and make the room pop.
If you really wanted to add granite somewhere in the house, the bathroom may be the place for you as the bathroom counter is going to be much smaller than the kitchen. On top of this, you can cut costs by buying granite with well-placed imperfections.
Other key things to consider are:
First impressions matter. When it comes time to sell, the first thing prospective buyers see is going to be the external of the property. They are going to pull up outside and approach the front door. If they are presented with an overgrown garden of weeds, peeling paint, and cracked windows they’re probably not going to buy – no matter how nice the inside. If they think they’re walking into a crack den then they’re more likely to run than make an offer.
It doesn’t take a lot to massively improve the look and feel of the front of a house.
Make sure your exterior paint and details are up to par. The driveway should be paved properly, and any lawn space should be properly maintained. Consider drought-tolerant plants and other low maintenance foliage.
One of the best improvements according to the Cost vs. Value report is the addition of manufactured stone veneer which vastly improved the external appeal of properties and on average people recouped over 100% of the costs of the project upon sale.
Modern renters and millennial buyers are eco-conscious. A property that has a smart thermostat, quality double glazing, and an energy-efficient boiler then is going to have a great deal of appeal. Each of these updates could add value.
Related: Eco-friendly Technology for your Rental Property
If you really wanted to go overboard you could always install solar panels.
By converting your basement or attic into another usable space you can massively increase the value of your investment property.
However, these are big jobs that can easily range from $15k to $70k.
A basement space can be adapted by prospective buyers into a media room, playroom, bar, or man cave. The possibilities are endless and give the house a big appeal.
Try to keep the space as open as possible so it does not feel dark and cramped.
Adding a wooden deck area in the yard is a popular refurb that adds value and can transform a garden into an idyllic space.
If you choose to install a deck, take some time to plan it out and come up with unique features such as built-in benches or a fire pit if your city or town allows them. Use higher grade materials to increase the life of the deck.
There are loads of things you can do to a property. The ‘what’ exactly will depend on the property itself though, as every property is different. A refurb, done well will dramatically increase the sale price of a property and increase the rental yield of a property. However, they can run over budget and things can go wrong. Try to keep your remodel cosmetic, as anything more integral will come with a much higher price tag and has more of a chance of going wrong.
Other than that, good luck and happy investing!
We hope you found this blog interesting! However, do note that it should not be used as a substitute for competent legal and/or other advice from a licensed professional.