property can be a smart investment. But with quick changing pace of
the real estate market, its value may go up and down regularly. To
make sure that you make the most out of residential property, you
should aim to utilize its potential by making a minimal investment
while aiming maximize the
return on your investment.
looking to add permanent value to your investment, you can consider
improving its aesthetics and overall functionality. Improvements
can take the form of cosmetic improvements (refurbishment) or
substantial rehabilitation (renovation). Refurbishments can be as
simple as repainting or installing new wallpapers, adding new
decorations, new carpeting or reflooring. On the other hand,
renovations can cover improvements and repairs to the structure of
the property such as upgrading the kitchen or installing newer
fixtures in the bathroom. Renovations are more likely to increase
the value of your property and give a greater ROI.
the previous years, there has been at least 50-60% value
recouped from renovations.
of the upgrade you choose to implement, these improvements increase
the value of the property for not only your tenants but for your
own portfolio as a credible and accountable landlord as
not all property improvements guarantee ROI. Worse, some can even
have the opposite effect and hurt a property's market value if it's
not well-researched or properly executed. With renovations and
refurbishments, the relationship between cost and value are always
changing. You must weigh the cost against your return
to the 2018 Cost vs Value
Report of Remodeling
Magazine, big-ticket and upscale remodeling projects
tend to provide a lower rate of return of investment compared to
more modest renovation and refurbishment projects, since trends
over the years have shown that buyers tend to become more frugal
with their choices. But despite that, there are still a few buyers
or leasers that are willing to invest a little more for that added
grandiose and luxury.
the cosmetic or structural aspects of your property does not need
to be over the top. The trick is targeting the correct parts of it
that will allow you to re-sell at a good price. Remember, consider
small changes that make a big impact.
some renovation and refurbishment projects you can consider:
fresh coat of paint is one of the most inexpensive ways to give
your property a makeover. Choose a neutral and light color for your
walls, moldings, and ceilings to make it appear more spacious and
bigger, which is ideal for studio-type units. At the same time,
this appears to be more appealing to a wider range of
buyers are easily turned off by leaky faucets and stained sinks, so
investing in upgrading the kitchen is always a good move. The 2018
Cost vs Value Report shows that there was at least 50% cost
recouped in minor kitchen renovations. Replace outdated kitchen
countertops with a new finish for a sleeker and more modern look.
Repaint the cabinetry and replace outdated hardware. Make sure that
all fixtures are working properly and efficiently.
can greatly improve the resale value of your property. In
Magazine reports that bathroom renovations give
an ROI of at least 70% in resale value in 2018. Consider installing
new countertops, sinks, and faucets. Upgrade plumbing fixtures as
well. Moreover, providing ample storage and a decent mirror with
frames can also do the trick.
lighting can make or break a deal. In fact, it is one of the most
cost-effective ways that can improve your property's look and
market value. Correct and ample lighting can also double the space
of your property. Consider replacing dining room lights with
semi-flush mount lights or ceiling pendants. Since some buyers also
prefer additional ambient lighting, installing recessed lights can
ample storage is very important for potential home buyers. It might
be a good idea to have built-in closets, floating shelves, and
cabinets. You might want to consider custom-built beds or sofas
that can double as drawers for additional storage as well.
upgrades can have a lasting influence and effect on the value of
your property, and at the same time, help you save you money
up front by decreasing repair costs and
maintenance expenses. Cosmetic
renovations may increase the value of your property
marginally, while completing
structural renovations can add to the
value to your
property and would likely be more
appealing to potential buyers.
information on residential services, contact Beverly at 403-5509 or