My gosh, capital growth is slow, isn't it? If only there were some magic beans like in Jack and the Beanstalk which would see our properties' values shoot up overnight. Although we don't have a solution that’s quite that fast, we do have some advice which should help your goose lay some golden eggs.
Presented first in Infographic format and then with some more in-depth description below, check out our top 11 tips on how to increase your property's value:
They say you make money on the day you buy your property, not the day you sell it. Doing your homework on the area you're buying in, and making sure you pay under the market price for your properties, is absolutely crucial for your long-term success.
There's a widespread belief that you have to choose between regions which have high capital growth or high rental yield – but with enough research and due diligence, you can find a property which has both and put yourself in a powerful position for the years ahead. Look for areas with good existing amenities, jobs and infrastructure, and those with further amenities and infrastructure planned. You also want to make sure you buy into in an area with strong rental demand, low vacancy rates and high rental yields. This means your property is more likely to be tenanted and that you'll make a better income from it.
A fresh lick of paint is relatively inexpensive and can instantly revitalise a tired-looking property and add thousands to the value. Go for neutral tones to attract the most likes without offending potential tenants or buyers.
Now that you've repainted, the carpet looks terrible, doesn't it? Dirty and frayed carpeting is a huge turn off and is often the first thing prospective tenants and buyers notice during inspections. Ditto for chipped floorboards and tiles. You don't have to go overboard here, just make sure the floor looks clean and presentable. A fresh carpet in the main rooms is again relatively inexpensive compared to the value it adds to the property.
Ugly, outdated bathrooms are something we've all encountered – don't let yours be one of them! An unappealing bathroom is an instant transaction killer, turning away prospective buyers and tenants more than any other feature in the house. Go for light, bright colours that reflect light and make the space feel bigger (bathrooms are notoriously small rooms). Go for a low-cost vanity with a laminate finish. Pro tip: large rectangular tiles laid horizontally make the room feel bigger, as do correctly placed mirrors.
Like in your bathroom, look for appealing, functional but inexpensive inclusions. You might not need to replace all the cabinets if you find a great looking benchtop that brings the whole space together. Need new appliances? You can get packages from major retailers including stainless-steel oven, rangehood and cooktop for under $1500. Don't buy high-end "name" brands; your tenants (and property valuers) just want something modern and functional. Many houses don't have a dishwasher installed – doing so can allow you to increase the rent by up to $10/week meaning you'll pay off the appliance (and installation cost) in under two years while also boosting the value of the home. Pro tip: getting more modern style handles on cupboards and drawers in your kitchen is one of the highest ROI investments you'll ever make.
Depending where your property is located, this addition can range from mandatory to reassuring peace of mind for your tenants. You don't have to build Fort Knox here, but simple additions like fly screens, roller shutters, deadlocks or even an alarm system shows you value the safety and security of the property.
Once you've done all the above, and if your property manager has done their job properly, you should have no trouble in finding someone who will live in your property and treat it as if it were their own. This is a great way of making sure all your hard work appreciated and taken good care of. You'll be sure to get your rent on time, reduce vacancy rates, dodge re-letting fees, and minimise the amount of….
One of the biggest issues – or complaints – tenants have about their rental properties is poor maintenance. And keeping a property well-maintained is crucial to maintaining and adding to its overall value. Make sure promptly address any repairs or by employing a property manager to do this for you. Little things can quickly grow into big problems if they’re not addressed early. You or your property manager should also conduct regular inspections to make sure the property is in good condition and proactively look for ways to improve its appeal to tenants.
The first thing someone sees when they look at your property is the front lawn, and garden. You might not enjoy gardening but taking care of the green space around your property is a proven way to up the value of a home and tells prospective buyers and tenants that the entire property is well looked after. PS: Don't forget to fix the fencing if it needs it.
Purchasing a property with a flexible floor plan can allow you to move internal walls or enclose outdoor areas attached to the house to form an extra bedroom. This can represent an extra $100/week in rental income if you pull it off!
Our final tip is also the biggest one to successfully achieve, and involves finding a large enough block of land that can be split into two – or even three – smaller blocks. Be sure to do your research and understand the entire subdivision process including your local council's Development Control Plan and the resources you'll need to pursue this strategy. This is a profitable path but filled with hurdles and traps for the uninitiated – not recommended for beginners.
So, there you have it. Whether you're searching for inspiration for your own home or for an investment property, we hope you found some actionable tips on how to increase your property's value.
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At A9 Property we provide free content and advice for investors getting into the Australian and Brisbane property investment market. As property investors and property managers, we want to help you get the most out of your investments. A9 Property provides first-time homebuyers and property investors knowledge on the world of real estate. Our weekly real estate blog discusses a variety of property-related topics, including property investment strategies, real estate industry trends, and current property market shifts to give you valuable insights and help you make informed decisions. We specialise in off the plan properties – a popular investment strategy in Brisbane and Australia. If you're looking to invest, Check out our carefully selected portfolio of off-market properties for sale or contact us for an obligation-free chat to discuss how you can succeed in the business and make the right property investments.