Successful investment in real estate does not stop at owning property; a careful approach to raising value is what is going to ensure profitability of your deal. From maximizing the property’s appeal to potential renters, increasing its value, and generating the income you planned on. At BG Wealth Group, we’ve shared a guide on maximizing your profits with our value-building focus, but now, it’s time to think out of the box.
Making your property look its best will inspire curiosity. With renovations, revolutionized curb appeal, and installations of assets that make a living more straightforward, upgrading your current real estate investment benefits the people you rent out to and garners a far greater return on your investment.
Investors understand that a well-maintained, modern property stands out in a competitive real estate market. The key is to balance cost-effective improvements and developments that raise value meaningfully.
Our new comprehensive guide will explore strategic projects that successful real estate investors like you can undertake to make your properties appealing to potential partners.
Kitchen Remodeling
A modern kitchen is a significant selling point for potential buyers. According to Remodeling Magazine’s Cost vs. Value Report, kitchen remodels yield a return on investment ranging from 62.7 to 81.6 percent. Although this task is larger than any other renovation project, the returns speak for themselves.
Here are some steps to consider.
- Start small: The kitchen doesn’t need to be torn down completely! You can start by replacing the kitchen faucet, updating old and ugly cabinets, and also installing modern light fixtures. Remember, do your research! What kind of upgrades are raising value significantly in your area?
- Considealternatives: Instead of replacing the cabinets completely, think of cost-effective strategies such as painting them or even covering them in low-cost vinyl to get the look you want.
- Appliance upgrades: These days, appliances are very important to the homeowner and a high quality finish such as stainless steel is a guaranteed success. Finding a good aesthetic set of appliances will instantly upgrade your kitchen.
- Energy Efficiency: Consider replacing older appliances with energy-efficient models, which not only appeal to environmentally conscious buyers but may also qualify for rebates.
Do note that a kitchen upgrade, or any upgrade for that matter, should always compliment your property’s overall value and appearance, it should not seek to overshadow it.
Bathroom Boosts
Aside from bedrooms, the bathrooms are one of the cornerstones of a well-built property; many renters make it a priority to ensure that their bathrooms are top-notch and comfortable, so you should too! According to the Cost vs. Value Report, bathroom remodels can recoup 87.7 to 93.4 percent of your investment.
Here are some steps to consider:
- New fixtures: Better plumbing equals a better experience for both your management of the property as well as those to whom you rent it out.
- Fresh paint: A paint job does wonders for any living space, whether it be small touches or a complete overhaul to the space. Bathrooms should always be soothing, and a paint job does the job well.
- Quality-of-life Improvements: Transforming the space with new mirrors, light fixtures and accessories will add considerable value to your bathroom, and in turn your properties potential ROI.
Extra Spaces
The most underutilized aspect of many home investment projects is any extra spaces that are left unused due to their incomplete nature. Whether it be basements, attics, unfinished closets, or even storage rooms, the possibilities are endless, and can even give you the opportunity to split your property into two sources of passive income!
At BG Wealth Group, we understand the large task you must take on to renovate an extra living space, but the potential passive income should not be ignored. In Canada, a living space with a renovated basement can cost up to 70% more! Now that sounds like a step in the right direction.
Whether you convert these extra spaces to more storage rooms, an extra bedroom or even an extra space to rent to different tenants, it will add a massive amount of value to your property.
First Impressions
Curb appeal is a critical factor in shaping the first impression of your property. As humans, people always, whether it is subconscious or not, judge something the first time they look at it, and that is no different for your property! Consider improving the first look of your investment, whether it be installing a new front door, pruning shrubs, or adding vibrant flowerbeds, it all enhances the visual appeal.
Although improving the first look always results in a positive rating, there is still some precedence not to go overboard either. Keeping these improvements in line with your entire property will ensure a consistent and more secure future for your investment.
How You Can Start
At BG Wealth Group, we are dedicated to making the process of becoming a real estate investor as easy as possible. Real estate is one of the most lucrative and rewarding investment types in the world, and Canada serves as one of the best places to invest. You’re in the right place, at the right time, now it is time to get your investment journey started.
With this guide, you have the baseline of what it takes to improve your property, giving you the opportunity to generate passive income for you and your future generations.
Feel free to book a call with us for more tips on how you can improve your real estate investment strategy or if you are interested in partnering with us, and putting your money to work for you while you sleep.
We are excited to see this journey unfold for you.
