Buying an investment property should enable you to reap the rewards of a prudent financial decision within the shortest possible period. The term ‘investment property’ creates the impression of a pristine property that is going to create an in-flow of capital that never stops delivering.
Mike Greeff CEO of Greeff Christie’s International Real Estate says, “Investing in property is one of the sure ways to ensure your investment pays for itself but often the property you purchase will not immediately be as perfect as you’d hoped. To make your investment more appealing to the market and a lot more profitable, we recommend a portion of cash outlay, to ensure you can update / renovate it sooner rather than later.”
Location, location, location
The first and golden rule of the property market is, “Always buy in a place that people want to be”. Choosing a good location means that you can be confident of always having your choice of tenants. A prime location should be sufficiently established with a range of amenities like schools, shopping malls, entertainment and lifestyle destinations available to residents or if it is newly established with development in the pipeline. It will give residents the feeling of being part of the development of a new neighbourhood or suburb. Access to public transport routes, motorways and arterial routes to business hubs would be a bonus.
Renovating your property
Giving your property a complete makeover is not necessary to make it more attractive to a would-be tenant, but a few thoughtful renovations could essential appeal to your investment. First and foremost, painting the property is a good start and can aid in making the property appear more inviting than before. Giving a facelift to the kitchen and bathrooms takes years off the age of a property and adds instant charm, which potentially translates to increased rental revenue. Adding a garage if the property doesn’t already have one is a great idea as the added security ticks a box in the mind of a tenant. The same can be said for electronic gates and garage doors as well as security features like alarm systems and cameras to monitor the perimeters.
Making your property more efficient
‘Eco-friendly’ and ‘resource efficiency’ are two terms that more buyers and tenants alike are looking for when considering a property. The use of energy-efficient lighting and a solar geyser have the potential to halve their monthly electricity bill, while low-flow water fittings can rake in the savings on your water bill. Grey water reticulation for the garden would be a plus and if you have a pool, a quick fix would be to have it decommissioned during the current drought.
Tenants want to make sure they have adequate space for their belongings. Even if all their furniture cannot be accommodated in the main areas of the home, it gives comfort to a tenant knowing that they won't have to get rid of any of their possessions and that they have the requisite storage space available should they need it. It would make sense to convert an unused basement or attic space into storage space.
Getting the most out of your investment property need not cost you a fortune in order to provide a good return on investment. Cost efficient decisions can increase the rental appeal of the property substantially and that will, in turn, lead to healthy profits.
Issued by Greeff Christie’s International Real Estate