Why regular property renovations means better returns
- April 2, 2013
- Ayda Shabanzadeh
Buying an investment property is a great way of generating returns but for many property owners the only sizeable amount of money they spend on their investment is the purchase price, after that they might repaint every so often and fix anything that is broken, making small repairs and maintaining the property to its original standard.
While this may be a good way of saving money, it is not a good way of making money. If you want to increase your return on your investment you need to spend money on it. Key to this is upgrading the kitchen and bathrooms. These are the areas that wear and date the quickest and they are the areas that enable you to charge a premium price if they are new and have all the latest appliances and features.
A canny property investor knows that not updating their investment will lead to decreasing returns. They also know to stay up with the latest developments, finding out from rental agencies which features are in high demand, are people looking for built in laundries, do they want baths or showers? Knowing what your market wants is key.
You’ve got to spend money to make money in the property game.