Points to Remember While Adding a Value to Your Investment Property
Jun 14, 2018 Home Trading Steps
When an individual buys a property not for end use but to earn some extra income by either putting it on rent or selling it off then it needs to be treated differently. For this certain steps should be followed to fulfil the primary objective of buying the property.
There are some investors who in a bid to earn more when they rent out or when they sell the property, invest heavily in the property which at times is not required.
For instance, if you are planning to out in money to personalise your investment property then it would be a sheer waste. As the property is for the investment purpose not your personal use. However you do have to invest a bit such as if you make the kitchen full furnished and equip it with a microwave then your tenant would going to like it as nowadays is one of the basic necessities and the tenant would not mind paying a bit extra. But if you plan to adorn your living room with a chandelier and a huge painting then it would be a waste of money and the tenant might not like it either. The tenant might have his or her own ideas to decorate their house even if it’s a rented one.
If you are planning to sell the property then don’t waste your money in making some structural alterations. Structural changes means huge sum of money. Also this would restrict the new buyer to change the property in the way they want. The best move is to let the buyer think about the possibilities that the property has to offer them.
Several changes that are commonly perceived as value addition also end up devaluating your investment property. The arrival of the Metro network too close to your property, for instance, is not as beneficial for you as you might have thought. Not many of the tenants would like to live in a place that would constantly be noisy and crowded. Similarly, if a telecommunication major sets a mobile network tower in your housing society and you think you could cite this as a unique selling point of your property to buyers, you would be doing wrong.
Changes that amount to health hazards would not find favour with buyers.
Then, there is that category of investors who think the property will sell/rent itself. This category of investors would not do even the bare minimum that is required to make the property inhabitable. It would be good to remind yourself that the market a full of great property-we live in that kind of times. Gone are the days when property owners had the privilege to act that way. Sitting on a vacant property would only harm your monetary goals ergo make the additional investment that is required to achieve that primary goal. Also, maintenance would be your responsibility in case you give your property on rent. Do be mindful of that fact, too.
There are some investors who in a bid to earn more when they rent out or when they sell the property, invest heavily in the property which at times is not required.
For instance, if you are planning to out in money to personalise your investment property then it would be a sheer waste. As the property is for the investment purpose not your personal use. However you do have to invest a bit such as if you make the kitchen full furnished and equip it with a microwave then your tenant would going to like it as nowadays is one of the basic necessities and the tenant would not mind paying a bit extra. But if you plan to adorn your living room with a chandelier and a huge painting then it would be a waste of money and the tenant might not like it either. The tenant might have his or her own ideas to decorate their house even if it’s a rented one.
If you are planning to sell the property then don’t waste your money in making some structural alterations. Structural changes means huge sum of money. Also this would restrict the new buyer to change the property in the way they want. The best move is to let the buyer think about the possibilities that the property has to offer them.
Several changes that are commonly perceived as value addition also end up devaluating your investment property. The arrival of the Metro network too close to your property, for instance, is not as beneficial for you as you might have thought. Not many of the tenants would like to live in a place that would constantly be noisy and crowded. Similarly, if a telecommunication major sets a mobile network tower in your housing society and you think you could cite this as a unique selling point of your property to buyers, you would be doing wrong.
Changes that amount to health hazards would not find favour with buyers.
Then, there is that category of investors who think the property will sell/rent itself. This category of investors would not do even the bare minimum that is required to make the property inhabitable. It would be good to remind yourself that the market a full of great property-we live in that kind of times. Gone are the days when property owners had the privilege to act that way. Sitting on a vacant property would only harm your monetary goals ergo make the additional investment that is required to achieve that primary goal. Also, maintenance would be your responsibility in case you give your property on rent. Do be mindful of that fact, too.
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