Renovating your investment property can significantly increase the value of your property’s value. Updating your home, if done correctly, can also save you from future home issues for your tenant such as cracks, leaks, and other costly problems.
Renovating and upgrading your property will not only put your investment property higher on the market but it might just save you tax time. By giving valuable deductions to claim on your tax return before and after you renovate you could be saving money. Make sure you research these deductions before you renovate because you could be eligible for ‘scrapping’ deductions. scrapping allows you to claim an instant deduction on the entire residual value of items you throw away. Talk to an expert before you renovate because you could claim more than you think.
Ensure that you do not overspend because paying more for your property than what your property is worth will waste money not gain it. Even though it is tempting indulge in expensive fixtures and detailing but you need to consider what will be beneficial in helping you get the most out of your investment property. Start by researching, budgeting and even talk to an agent or property manager to get an understanding of what people are looking for in your area or type of property.
If you are looking to renovate but sure what improvements should be made you should first look at your property overall look, is it outdated? impractical? Modernising it will instantly put your property higher on the market. If you feel you have already met that requirement you can look at extending. adding an extra room or even a larger outdoor living area can make a huge improvement. If you wish to spend less but still make a few tweaks, simply by putting up new curtains, new flooring, new appliances (oven, stove, heating and cooling, lighting) and a fresh coat of paint can improve your property’s appearance. Ensure to stick to neutral colours like white and beige when renovating or just painting an investment home. Having bold colours can scare many kinds of tenants. Having a more simple theme in your home will welcome a broad range of potential tenants because keep in mind that tenants can make their home as bold as they like with artwork and furniture.
I hope these tips help in your next renovation or inspire to do so. If you wish to contact a leasing expert or property manager call our office on 9818 3580 or check out the rest of our website for more information.