How to maximise the value of your current investment property
The people have spoken, and they want real estate in Surfers Paradise. At least, that's what the numbers tell us! According to SQM Research vacancy rates data, the number of empty rental properties in this jewel of the Gold Coast has decreased year upon year since 2011. That's at both maximum and minimum rental vacancy rates in the annual cycle, as well. Currently, at the highest point of vacancy rates in the area for this year, the figure sits at a mere 2.4 per cent.
This means that buying investment property in Surfers Paradise is an excellent way to have a piece of real estate that is always in hot demand. But property isn't just a short-term game – you also want to be looking at the capital gains to be reaped in five, 10 or 20 years. This doesn't mean resting on your laurels while the Surfers Paradise property appreciates in value either. There are a lot of things you can do to boost your home's value!
Be money-smart with your renovations
When you want to add big value to your home, you should consider adding renovations. According to the Housing Industry Association's Renovations Roundup, there will be an 8.2 per cent upswing in this activity between 2015 and 2018 as economic conditions become a bit friendlier.
However, not every renovation is going to add value to your home – it has to suit the conditions. For example, building a swimming pool isn't going to outweigh the construction costs in a cold area!
Additions to the home should also have the long term in mind. Permanent value won't be added by something that is going to fall apart in the next five years. Better insulation, roofing, windows and flooring are all great ideas, but just remember that maintenance will still be required.
This doesn't just add value when it comes to selling or renting it out, you also save on day to day costs thanks to the increased energy efficiency.
Create space where it's needed
It can also be tempting to add a gigantic deck to attract tenants to your Surfers Paradise property and build value, but stop and consider – is bigger going to be better? Small renovations can be much more valuable. Purpose-built storage, removing interior walls for bigger living and dining areas and even relocating facilities like the laundry to a smaller space can free up a lot of space on your property.
This gives people the room to stretch out, and perhaps for you to stretch out the selling price down the line. Think practically – where in the home feels particularly cramped or dark? Renovate to bring everything up to a bright, comfortable, spacious level. Then you can think about the fancy add-ons!
Do the right thing with your marketing
Even the nicest Surfers Paradise property isn't going to generate interest and value if it doesn't have the right marketing. Creating demand can be a good way of increasing the value of your home, as buyers compete to secure it. It also helps to advertise all those fantastic renovations you made!
By diversifying your marketing with photo and video, you can give a glimpse into your slice of paradise that others may not offer. The right real estate agent can help with this, and start fostering hot demand for this Surfers Paradise or Main Beach real estate. Talk to our team about how you could benefit from this!
For more excellent tips on adding value to your home, as well as the opportunity to share ideas with other Surfers Paradise property owners, make sure to check out our upcoming landlord symposium – RSVP today!