John McGrath's top 10 ways to add value to your investment property without over capitalisation
OK, so you haven't got around to the household renovation wish list yet. And not wanting to spend too much, here's wise 10 tips from John McGrath on adding value to an investment property.
They all will give the place a boost, but without the likelihood of overcapitalisation.
The style and quality of the improvements together with careful budgeting will be important as to whether over capitalisation becomes an issue.
It can certainly be minimised with reliable professional advice, careful planning, market trend assessment, along with the wise sensitive execution of the improvements.
It probably starts with buying a house or apartment with a value at or lower than the suburb's median price as that allows greater scope for capitalisation.
- Paint it
- Build a carport
- New curtains or blinds
- Install a skylight
- Replace light fittings
- Put in a barbecue
- Steam clean carpets
- Sand the floors
- Replace door handles and knobs
- Install a dishwasher
"Your goal is to add the wow factor without blowing the budget," John McGrath suggests in his Smart Guide to Property Investment.
I'd reckon perhaps two of the tasks might require a phone call to the council just to check on the approval process for car ports and skylights. And if you are in an apartment block best check on the rules regarding dishwashers in the kitchen.
(Source John McGrath's "Ultimate Guide to Real Estate" HarperCollins Publishers.)
