10 Incredible Ways to Increase the Value of Your Property
You can earn a return on your real estate investments through tax benefits, cash flow, equity buildup from loan repayment, and property appreciation. Statistics indicate that most homeowners sell their homes for 29% more than they purchased them. Standard real estate appreciation depends on the current market, inflation, and economic turbulence. However, it is possible to improve the value of your real estate property beyond standard equity appreciation through the following ways.
1. Increase Your Property’s Curb Appeal
Making your property attractive is an effective and straightforward way of increasing your property’s value appreciation. The real estate market operates based on the law of demand and supply. Thus, if your property stands out from others in the same market, you will generate higher demand, making your rental property to remain occupied in the long run.
Additionally, increasing the aesthetics and curb appeal is a cost-effective way of improving the property’s value through landscaping improvements. For instance, you can contact a maintenance firm to suggest your landscaping architecture.
2. Raise the Rent
Raising rent is one of the easiest ways to increase your cash flows and property value, especially for commercial and residential real estate properties. Many property owners are reluctant to raise the rent due to the tenants’ turnover. However, this shouldn’t be a concern since the rent rates should be at market levels.
If your rent is already on market levels, you can conduct upgrades to justify higher rents. Any home improvement that enhances the quality of living can attract increased justifiable rent.
3. Reduce Operating Expenses
Statistics indicate that if you decrease the operating expenses, you are likely to increase your property’s value by 10% to 20%. It’s essential for large commercial or residential properties to ask the current service providers to present a proposal on their charges. This gives you the ultimate power to select management firms that are insured and cost-effective.
Additionally, asking utility companies to conduct an energy audit can pinpoint energy loopholes that can help you minimize costs significantly. For instance, you can use new energy technology that has been proven to be energy efficient.
4. Add a Bathroom
Adding a new bathroom can increase the value of your house by 3% to 5%. Although it may seem costly, adding a bathroom with the trending sanitaryware increases the demand for your property.
It’s worth noting that remodeling an existing bathroom creates nearly as much value as adding a new one. However, when remodeling, take note of where the plumbing is located to avoid extra plumbing costs. Also, use high-quality modern sanitaryware to avoid future remodeling.
5. Add Space
In most cases, adding space adds value to your property by 5%. However, consider the costs involved in adding an extra bedroom, bathroom, or kitchen space. Also, a buying agency such as Hunter Gather Buyers Advocates will help you determine how you can add space to increase your property’s value.
6. Update Siding
A property’s exterior could either make a positive or negative impression, depending on its condition. Add value to your property by taking simple steps such as improving the state of the siding. Currently, there are many types of siding, and the best will depend on the climate of the property’s area. Updating the siding will improve the aesthetic look of your property, increasing its market demand.
7. Gut Renovation
This refers to completely tearing down the property and building it back with a more modern design and materials to increase its overall value. This is an ideal way of increasing your property appreciation, provided you can sell the property for more than the renovation and holding costs.
8. Create a More Functional Floor Plan
This can be done in several ways, such as taking down the wall between the living room and the kitchen, swapping the location of two rooms, or taking space away from one room.
9. Noise reduction
Properties with high insulation features attract a higher demand, especially for properties located near cities. You can improve insulation by doubling pane windows and doors or renovating with materials with high insulation properties.
10. Add More Interior Living Space
Adding living space can increase your property’s value by 5.3% on average. Research reveals that adding more living space can increase value, similar to adding a new bathroom or a bedroom
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
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