When you invest in the real estate market you can be sure of a few things; the first, that you can put your money in and see returns be it short to long term; the second, whatever you wanted to learn about the property market is already available with a bit of internet searching.
Many would assume that developing a real estate portfolio, or even treating your home as a cash opportunity is a little opportunistic, but looking at your property as a cash egg nest for the future could be one of the more sensible options for your long term financial security.
What are the best ways to gain value your property?
You have factors that you can control, and factors that you cannot. For example, schooling, medical provisions and general environment which are not controllable, and then you have your home condition, which is controllable.
For the factors you can’t control, there is no need to expend energy here. But the best way to gain home value is through updating your home and keeping on top of general home maintenance.
What is going to provide the best return on investment?
When it comes to real estate investment, you want to consider what is going to be the best return you can gain from any investment made into the property. Online realtors, Fast Florida House Sale conducted a study in 2016 which showed the average financial gains you can make on modifications to your home.
So, what is the best return on investment for a property?
You would be surprised to know that one of the best investments that you could make in your property is as simple as adding a lick of paint. With an average cost of $1600, you could see a house price increase of up to 18%. That’s not bad when you consider that the original investment of materials and labor in that average cost.
What about the kitchen or bathroom?
Remodeling can be very expensive, especially when it comes to your most used areas of the home, the kitchen and the bathroom. 2016 saw some of the largest costs go into kitchen remodeling, with an average of $20,000 and when you consider the potential gain to be between 7% and 9% then you are getting less than half of what a relatively low cost operation of painting your home can be.
The same applies to your bathroom. Did you know, the average cost of bathroom repairs in the US last year cost $9,000. Once again with returns as high as only 10%, you will not see the total benefit of your investment. The one tip we do have is, invest in time between your kitchen and bathroom however to unblock any pipes, stop any leaks and ensure that there is no rotten pipe work. Making these kinds of checks can save you time and money in the long run and help sell your home fast.
Should I look after my exterior?
In short, yes. But if you’re looking to sell your home in a few years, it could be one of those big costs you avoid for a while. The reason for looking after the exterior, be it painting the home, repairing fences, landscaping your garden and such, is that you want to treat the exterior of your home as your first greeting card to any potential investor.
If you’re not looking to sell your home now, you could save the money, do general maintenance, like cutting the lawn, and then make the investment at the time of wanting to place your home on the market.
When it comes to looking at your home as a property investment, a bank for the future, think about the money you would need to sensibly invest over a period of time to get returns. It is claimed that 5% of your wages per year should go on home repairs and for larger items, like a kitchen, then it shouldn’t be more than 15% value of your home if you wanted to see returns in the next five years of home ownership. By following these simple rules, you can see your property become an investment pot for your future.
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