Getting the most out your properties as an investor is one of your primary goals, the other is to provide a living situation so good it’s worth the extra dollar to live in it. Unfortunately though, not all renovations are made equal, and not all will provide you a return on the massive time and money investment it takes to keep a property maintained and upgraded.
1. Set a budget and have focus
Think about the ramifications of the jobs you’re thinking of getting underway. Modernising an old three-by-two home could net you an extra $60 a week, which adds up over the year. But it’ll be a long time before you recoup your costs if you go for a Gordon Ramsey grade state of the art kitchen. Have a budget and stick to it. To keep within this budget, it’s almost always better to repair than to replace. Give the place a new lick of paint for a quick and easy new lease on life.
2. Go For High Impact
Put money where your tenants are going to be hanging out most. Your tenants probably won’t be chilling in the laundry on their downtime but pay special attention to the kitchen and bathrooms. Also flooring can make a massive difference. Even if you aren’t tearing everything up and starting from scratch luxury floating flooring is a fast and affordable way to modernise a space.
3. Spruce up & Temporary Changes
Replacing all the tiles may not be the fix you’re after. Light coloured grout tends to pick up mold and look gross pretty quickly. A simple fix, apart from giving it a good old deep clean is to stain it a darker colour, should only take an afternoon of elbow grease. After you’re done, be sure to seal it after cleaning to hold the mold off for longer.
Replacing the handles around the home is an inexpensive way of modernising the property. Pair this with brand new lighting fixtures and you’ve got yourself a nice looking place.
This is the nuclear option for getting more out of your property, but as we said earlier, budget and make sure it’s worth your time. Adding another bedroom could mean you could be looking at an entirely different tier of renters, like a large family with a dual income. You’re looking at around $60,000 with a contingency of 15% to get it over the line. Adding a room can add a significant boost to it’s rental value, and you also have the benefit of possibly being eligible for the 50% insulation subsidy.
Changing a garage into a new living space is totally an option. But make sure you do it by the book, keeping it to council code and with an actual builder onside. Too many cowboys and bad actors chuck renters into untenable living conditions and earn themselves a place on Stuff or The Herald. You can do a decent conversion for as little $5,000-$10,000. You’ll want the works, electrical and plumbing, bracing, noise proofing, insulation, waterproofing, ventilation and heating. With a little care you’ve just made yourself a perfectly decent earner.
For a more indepth guide with more points and maybe even a helping hand to make this all happen view Property Brokers guide here.