When it comes to owning investment property, the end goal is usually to increase its value to the point where you can earn a healthy profit after selling. This can be achieved in a number of ways and it's completely up to the particular investor to decide on their own approach to the market.
For example, some people may simply wait for the natural growth of capital gains in their area before selling, using the home as a rental property up until that point. This involves large degrees of research before purchasing in order to find areas tipped for strong economic growth and steady capital gains.
However, another way that many people are beginning to investigate involves actively being a part of the property's growth in value through renovation. This could be a great option for those looking to speed up their turnover and earn a profit as soon as possible. Of course, this often involves spending money to make money, so keeping that in mind is essential.
But some investors are beginning to make radical renovations to their portfolios in order to stimulate capital gains growth. Whether this is the installation of a new pool or the addition of new rooms, these undertakings can be extremely worthwhile in the long run and a potential option for any investors interested in boosting their income.
One thing to remember with these types of renovations, however, is that they're often time-consuming endeavours and can cause disruption to your everyday schedule. This is especially true if you're also living in the home as well. But the end results are worthwhile, especially if you manage to boost your sale price by a significant amount.
Here are some of the top renovations and home additions to consider when you're looking into boosting the value of your home.
Installing a pool
Once only thought of as a luxury for the rich and famous, having private pools at your home is quickly becoming a major selling point for Australian property. And with summer just around the corner, what better time to invest in one for your investment property than right now?
When it comes to making the decision, think about your backyard and the potential problems that could arise. For example, you'll need to get various documents and approvals from the council, as well as install a fence around the perimeter of the pool to stop small children from accessing it.
Furthermore, things like trees that could be scaled and climbed to get into the pool will need to be taken care of, which could be a problem for those creating a luscious outdoor garden experience for the property.
Consider creating another bedroom
Something that is always in constant demand across the nation is more room for family homes. One way to increase the value of your investment properties could be to take out a construction home loan and look into creating a new bedroom for the property.
Not only will this help provide more storage for you in the short term, but opening up your potential buyer market to families or those interested in having a guest bedroom will increase your chances of a successful sale.
Keep in mind that creating another room for your investment home is no easy feat and could take a while, depending on the weather conditions and other factors outside of your control. Furthermore, if you live in the property as well it will be a noisy, drawn-out experience. But the benefits far outweigh the temporary annoyances, so keep this in mind when you're looking for ways to increase the value of your investment properties.
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