Real estate is an investment that appreciates over time. You may have invested a considerable amount in your property and are now looking for ways to increase its value. Real estate is just one of the many assets in their diversified portfolio for the wise investor. It takes patience and a bit of shrewdness to make sure that your investment property increases.
In 2018, casualty insurance company Chubb conducted a Homeowner Protection Survey on 1,200 U.S. households. The survey found out that 58 percent of the respondents signified that they would do home renovations within the year.
Before you go out and make plans on making renovations on your investment property, you have to note that there is a difference between making upgrades to your home that add immediate resale value and making choices that give zero return of investment.
One good tip in making decisions on what updates to make is that you should pay close attention to the surrounding market. An article with Forbes says that it is important to know the houses’ market value around your neighborhood. Once you are aware of the market value of your house and the market value of the homes around your neighborhood, this is when you can plan the budget for your home renovation.
This means that if the market value of the houses around your neighborhood is valued at $550,000, and your home is valued at $500,000, then your renovation budget should not exceed $50,000. Planning to increase your investment property’s value? Here are some points to consider.
Real estate specialists always insist on looking for a prime location when you are looking to increase your property value. This means that you should scout for areas that offer many amenities, such as parks, playgrounds, and shopping malls.
It does pay off to do your homework before deciding what to buy. It may take time, but you will see that it was worth it.
Give Your Kitchens and Bathrooms an Upgrade
HomeAdvisor chief economist Brad Hunter said that millennials are now more likely to have their kitchens and bathrooms remodeled than boomers. Hunter added that many of these millennials had purchased older homes to afford the cost of ownership.
Most homeowners believe that remodeling their kitchen and bathrooms would automatically add resale value to their homes. This is because kitchens and bathrooms are two of the most high-traffic and high-use rooms in the house. These rooms are also points of interest in potential home buyers.
Remodeling your kitchen will most likely give your home a big return on investment. One of the best ways to give your kitchen a renovation job is by upgrading your appliances, replacing old cabinets, and paying attention to the flooring. You may want your appliances to complement each other, and you may want to invest in quality flooring, and you could consider luxurious vinyl flooring systems, since it could still be within your budget.
Bathrooms do not usually require a complete overhaul, but you may want to make minor renovations to your vanity, toilets, and fixtures. Consider it to be a minor home project without breaking your budget.
Add More Space
Bigger homes sell for more money. To add value to your home, you can add square feet to your home. Before you go ahead and do this, make sure to strategize how you would go about this. You can do this by removing walls to open up some space to make your home look bigger, or you can add a second bathroom or a family room. Bigger homes are more likely to get more attention from potential buyers.
Keep Up With Maintenance
One of the responsibilities of being a homeowner is to keep up with maintenance. Now and then, your house will need repairs, such as the gutters need cleaning or the walls need to be repainted. A well-maintained home adds to its property value, and it is important to note that.
Patience Is A Virtue
Investing in real estate is not a get-rich-quick scheme. It will take time for your investment to appreciate. The property value tends to ebb and rise, so it is important that you are attentive to the market.
Landscaping Adds Class and Appeal
One of the easiest ways to increase your property’s investment value is to pay attention to the landscaping. Fruit trees, flowers, and well-trimmed lawns add life and vibrancy to your place. It is an appeal that few people can resist.
Investing in real estate is no joke. Not only does it take financial prowess, but you also have to be disciplined as well. Like every investment, you have to be confident that the fruits of your labor will eventually pay off.