Adding Value to an Investment Property
If you own an investment property in Michigan, you probably intend on making a profit from it either in the short or in the long term. Regardless of when you sell, this means that in the meantime, you do not want your property to depreciate, you want it to maintain and even increase in value. Fortunately, many of the maintenance costs can become tax write offs for you.
Many of the maintenance that adds value to your property involves more time and effort than in does money. This is reassuring if you are on a budget. The best place to start is the curb appeal. Begin with ensuring that the driveway is clean and looks in good shape. You pull the weeds as they grow and fill in the cracks so that at first glance, the driveway looks pristine. Next on the list is landscaping. People like less grass and more trees, but not fruit trees as they attract bees and other insects. Backyard sanctuaries are very popular and relaxing with a water feature and bird baths. Having a hedge that separates your property from the neighbours’ also increase its value.
Around the house, upgrade the entrance since it is the first impression potential buyers will have of the house. From there, make sure windows are recent enough to look in good shape and offer sufficient insulation from heat and cold. If you consider replacing the windows, but can only replace a few at the time, begin with the façade as they will be seen from the road and will enhance the appearance of the house. Next on your list should be the flooring. Get rid of carpets and vinyl tiles or linoleum. Nowadays, buyers want wood flooring and ceramic tiles.
If your budget permits, remodel the kitchen and the bathroom. They add value to your house and become excellent selling features. For design ideas and concepts, visit sjd.com.au. If you have enough space, consider having two sinks in the bathroom, home buyers love this feature! Select materials that are durable and easy to maintain. They will generate the most added value for you.
An important item to mention is maintenance. No matter how long it takes you to sell your investment property, make sure you always fix things as they come up. This will make a difference when you sell your house. A well-maintained house inspires confidence and trust. If you cannot fix everything at once, make a list to make sure you complete the work in a reasonable time. Take pictures if you need visual reminders.
Finally, there are some home improvements that do not increase the value of your property and should be avoided in investment properties. These include in-ground swimming pools that can cost as much as $75 000, but will never raise the selling price by that much. Also on the list are built-in fire pit. Most buyers prefer portable BBQ over stone monstrosities. The same goes with concrete patios. Aside from being pricey, they become an eyesore and retain water. Go with a wooden patio instead, it offers more flexibility and has better resale value.