Increase property value with these simple tricks
Most of our customers are starting their property investment journey. While helping you get a great home loan rate is just part of what we do, we are also interested in helping you create wealth with your property investments so that you can achieve your goals faster.
After some research and having spoken to a few experts, here are some proven ways to increase your property value with ease.
Add an extra bedroom and a bath
When searching for a property look for a difference in price between the number of bedrooms and bathroom. For example: if you look at Terrigal (NSW) the difference between a 3 bedroom house (690K) and a 4 bedroom (827K) house there is an astonishing $137K price difference. At Auburn in Sydney’s inner-west is a significant $220K difference.
A simple strategy to keep in mind could be to find a property that’s got an oversized
- Living room
- Two car garage
- Laundry area
- Bedroom or two
An outdoor area that has a large alfresco or entertainment area under the same fixed roof and slab (so that no structural changes are required) can easily and swiftly be moved and redone to create room for another bedroom with an en suite to increase valuation instantly.
Do your research, find historical sale prices of property.Talk to the council’s about some of your intended changes, if it’s only modifications to internal walls it should be a fairly simple process.
If you understand the current stage of the property cycle and buy in a ‘rising’ market you are entering at a good time. Timing is key and there are specialists reports you can subscribe to and purchase from various buyer advocates who are experts in this area.
Buy an ugly duckling. Look to buy below the market value
Those properties with pink tiles, a considerable amount of damage or wear and tear could be grabbed for a low price. Also, use this to negotiate the price down further with the real estate agent so that when you complete your cosmetic renovations it will further increase the property valuation. Read here for tips on how to negotiate a better price for your next purchase.
Cosmetic renovations can significantly increase the value of a property:
- A new paint job
- Replace old carpets
- Re-do the bathrooms and kitchen
- Put in new floorboards
The key here is to make sure that you are adding value. Every dollar you spend should add at least two dollars worth in value.
If you are planning on refinancing your home loan to finance some of these ideas, use LoanDolphin to find, compare, and connect to a home loan that will save your time and money.