Investing In Property: Where to spend and where to save
Whether you are living in a home you own or are considering getting into the property management business, spending money on a building is a great way to get a high return on investment. Sensible additions to a property can have a hugely positive effect on its value. This could boost your rental income or increase your house value so you can cash in on your equity and take it to a new, larger home. Here is a simple guide to the areas any homeowner or property manager should invest their money.
Floors, Fixtures, And Fittings
There is a lot of value in the flooring of a home, and it often goes overlooked. The floors of a space help sell it to potential tenants or buyers, and hard-wearing wooden floors have become the preferred choice of buyers and renters as well as property owners. The fixtures and fittings of a home are also important. Bannisters, framing for windows and doors, and skirting boards and picture rails will all contribute to the home’s look and speak to the quality of its construction.
If you are renting a property, the condition of these fixtures and fittings will form part of your potential tenant’s first impressions of you as a landlord. The better you look after and invest in your property, the better you will look after them. Finding a quality tradesperson to improve the look of your home and add some quality touches will help you make smart and lasting investments in the features of the property. You can easily search for a carpenter at MyBuilder recommended by homeowners and property managers just like you.
Their service provides verified reviews and photographs of completed work by local carpenters and joiners near you, helping you to identify experienced and reliable tradespeople with confidence. Working with an experienced carpenter can make a huge difference to the quality of the finished product, and your property price. Make sure you search for a tradesperson that can give you value for money to maximise the return on your investment.
Add Space To Add Value
The biggest gains in both property price and rental value are found in adding living space to a property. An extension may seem like a large investment, but the returns are huge too. Not only do you add a huge amount to your property price, but if you are a landlord, you also make a big jump in your rental returns. No property investment can compare to the gains you can make from adding one or more bedrooms and boosting the square feet of available living space.
If an extension is out of the question, do not be disheartened. Attics and basements can make great bedrooms and living spaces. These conversions are much quicker and easier to complete than a property extension. The gains in property price and rental value can be similar too. This can make them a smarter way to spend your money than a fully-fledged extension of your home. For commercial lets, there are still opportunities to increase yield from investing in an extension or conversion.
Space is always at a premium in retail or manufacturing. Storing supplies, adding retail space, or creating a break area all add value to a commercial property like a retail outlet, and add value to the building and your rental yield. If you have an existing commercial tenant on a long contract, you have an advantage. Speak to them about how you can tailor your property to their needs. Balance their demands with your budget and the potential return on investment. You can help lock them into a longer and more profitable deal, while also adding value to your property.
Property Maintenance Protects Your Investment
One of the most important areas to invest your money in is maintenance. The value of your property can be significantly affected if it is not maintained. This can also impact your rental agreements if you are a landlord. Poorly maintained properties are worth less in rental value as well as sale value. Make sure you continuously monitor the condition of your property and deal with any problems immediately.
Weatherproofing should be a primary concern. Damage from winds to roofing or guttering can have knock-on effects that threaten the value of your property. Water can cause thousands of pounds in damage in a short amount of time. Every brick, slate, and beam in your property represents your money. When they get damaged, so do your financial gains. Keep on top of your property maintenance and have a list of competent contractors you can call on to help fix issues quickly. This will help you to maintain your gains in rental value, and your property price.
When you are investing in your property, as either a homeowner or a landlord, you must invest wisely. Every improvement or maintenance task must come with a financial benefit to you that either protect your overall investment or adds value to your rental income and property price. Follow the advice in this guide to maximise the return on the investments you make in your property.