Increasing The Value Of Your Investment Property
Investing in an investment property can provide flexibility when it comes to adding value. Investors always want to ensure that they get a return on their investment.
Investing in an investment property can provide flexibility when it comes to adding value. Investors always want to ensure that they get a return on their investment.
Investing in an investment property can provide flexibility when it comes to adding value. A priority for all investors will always be ensuring that they get a return on their investment. Whether you’ve just purchased your first investment or are looking to add to your portfolio, these tips could help boost your strategy.
Ensuring that you’ve done your research is the key to adding value to your investment. Research can help you understand what features are going to appeal to potential tenants, and it can help you focus your efforts and finances on the most important upgrades.
A renovation project can ensure the full value of your investment is realized. You might consider renovations that make or save money, such as adding a fresh coat of paint, or those that involve other factors such as necessary or essential improvements.
It’s important to do your research before committing to any large piece of work on your property. You want to ensure that you can commit to, and finish, any work that you want to do to potentially improve and add value to your investment.
Here are a few ways you might add value to your investment property;
When it comes to increasing your asking price as a landlord, it is important to consider the state of both kitchens and bathrooms. A fresh coat of paint in these areas can have a positive impact on how potential tenants feel about your property.
When you’re seeking to rent out your property, ensuring it is pet-friendly can help attract more potential tenants. According to the RSPCA, more than 60% of Australian households own a pet, so it makes sense to include pet owners as potential tenants. Adding features such as secure fencing and removing carpet in favour of hard-surfaced flooring could add value to your investment.
Cost-effective storage solutions can help improve your bottom line. Providing tenants with ample space inside your property to store their items can increase the likelihood that they’ll rent from you.
It is a dangerous assumption to think that all renovations will add value to your property, so you should do research and understand the market before committing to any project.
If you are looking to renovate an existing investment property, speaking with a My LMI Group broker can help you understand your financing options.
When you’re deciding how to improve your investment property, it’s important to consider the tax implications of those improvements. Some costs can be claimed immediately but others may need to be written off over time. Your tax professional can let you know the rules that apply to adding value to your investment property so that you claim all the deductions you’re entitled to, while staying within Tax Office rules.
Before you start your development plans, take the time to get to know the council regulations for building in your area. Major developments, and even many renovations, require council approval, so getting the go-ahead from local authorities is essential to any project.
When you plan to develop an investment property, you’ll need to consider your tax obligations. Developing is viewed as a business venture and is taxed accordingly. Gain knowledge of the tax implications of investing in property, seek advice from a tax professional, or contact the Australian Taxation Office directly so that you know where you stand.
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