How do I add value to my investment property?
You've invested in Main Beach real estate, found your tenant/s to join the plethora of profitable rentals in Surfers Paradise, now, what's next?
According to figures from SQM Research, the average weekly yield from unit rentals in Surfers Paradise has increased 9.9 per cent over the last 12 months. With this in mind, it can be tempting, as a landlord, to just sit on your laurels while the rent money rolls in.
That's great and can be quite comfortable for the short-term, but have you considered boosting your capital gains for the long-term? There are a number of simple investments you can make on your property, that when done right will increase the value disproportionately – in a good way!
Here's just a few ideas to consider.
Of all the rooms in your property, this is the area that contributes the most to the final price tag according to the Property Institute. Thus, don't be shy when it comes to spending on the engine room. Install some energy efficient appliances, have plenty of bench-space and arrange it all in an attractive way.
Regardless of whether it's gourmet filet mignon or cheese and vegemite sammies, this is where the magic happens and as such will attract tenants, a higher rent income and value!
Despite Main Beach real estate being close to all amenities, public transport and, well, the beach, people will always have cars. In fact, Roy Morgan Research found that over the last decade the number of motorists on Australia's roads has driven up nearly 20 per cent.
Being able to accommodate for a tenant's whip can prove to be a real point of difference, which will likely increase your revenue both now and down the line should you consider selling.
The person who came up with the line "Don't judge a book by it's cover" will probably be feeling quite disappointed, because unfortunately, no one listens. If your property looks mistreated, past its time or just plain ugly, people will turn up their noses – regardless of whether it has a beautiful kitchen.
Houzz Australia has a few suggestions for improving the appearance of your property. Among these is revealing your green thumb and doing some gardening, putting your painters apron on and refreshing the face of your property and if you're really talented, digging out the trusty ol' hammer and nails and constructing a nifty new fence to surround your section.
Of course, you could pay someone else to do it but where's the fun in that?
The affection we Aussies hold for a good deck and outdoor entertaining area is no secret. A place where important affairs are discussed, like the existence of aliens, the meaning of life and the latest footy scores.
An article from Domain, June 20 2010 suggested the cost of one of these philosophy-sharing areas is roughly around $10,000 to $25,000. Meanwhile, the value added to your Surfers Paradise property could be up to $100,000!
The fundamental law of property investment, is that you have to spend money to make money. Any one of these methods could help add value to your real estate in Surfers Paradise, giving you a more favourable paycheck in the future.
Why invest in Surfers Paradise property?
Rentals in Surfers Paradise provide an attractive package for investors in Australia. The median price for units is just $340,000 according to Your Investment Property, while the rent required from tenants continues to rise.
If you are considering purchasing Main Beach real estate, you should talk to the team at Ray White. We have a wealth of expertise in Surfers Paradise property, and can help you through each step of making and maintaining an effective investment.