Is Your Property Portfolio an Investment to Sit On?
Why I asked that question is because that is the exact thought that some investors have.
Others though take the view that if they buy an older property for say, $370,000 and spend $45,000 on refurbishing inside and out, then the property will more than likely be valued at about $450,000.
Some would ask, “Why do this, the tenants will damage it anyway?”
But in actual fact by taking this path you have immediately gained an extra $45,000 equity that you did not have before, and you can immediately get a higher rental for the property and this helps in valuing your properties.
With the rental market still running at a high occupancy rate, you will gain in the long run.
So what would you spend your money on?
- Repaint inside and out
- New roof and guttering
- New security screens and doors
- New floor coverings
- New drapes
- Cheap refurbishment of kitchen (new bench tops and cupboard doors)
- New bathroom cabinets and shower
- New light fittings
- Repaint deck
- New garage door and remotes
- New fencing
- Redesign the garden
I have not given prices here because each case would be different, but for a 3 bedroom home you are probably looking at about $35,000+ and the difference in value would have gone up significantly.
There has been nothing structurally changed, no council approvals would be needed (except maybe the fencing). Not only that, if you get a slightly delayed settlement you can get all your subbies organised to start straight after settlement. If you are not confident in organising this type of work, find yourself a project manager who will take control until the job is done.
Filed Under: Property Investment Tips • Renovations
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