Investing in property is a good thing to do in many ways. Property is seen as a secure investment because it is a long-term option, meaning that it is far more likely you’ll see a return on your initial cost than not.
However, if you want to cash in your investment sooner than the decades it would normally take to see a return, you’ll need to think carefully about what you can do to maximize your profits. One option is to make changes to the property, and if you have bought a project property, that might be even easier. Assuming that’s the case, read on to find out what you can do to gain as much profit as possible from this kind of real estate investment.
Fix Or Upgrade Utilities
If you have invested in an older property or one that needs a lot of work, the best thing you can do to start with is to look at the utilities. Fixing them if they’re broken or upgrading them if they’re old is the ideal solution no matter what kind of property you have.
There are a number of reasons to do this. The first is safety. Any utilities like wiring and plumbing that are older than 15 or 20 years could cause a safety issue at any moment. They are potentially using old technology and fittings that are not allowed in modern houses, and switching these for new, safer options, is a good idea. You’ll find you can ask for a higher price when selling the house if all the fixtures and fittings are up to date and pass all safety inspections.
Fixing these things also means that you can protect the property from any fires or leaks which could come about due to faulty wiring or broken pipework. Although you should have land title insurance to help you should anything go wrong, preventing these issues in the first place is a good rule of thumb to work with.
Plus, when you upgrade all of these things, you can make them more energy efficient. This will again add value to the property and allow you to sell faster in many cases.
Check For Pests
Pests are something that can easily be forgotten about or simply ignored. After all, how much damage can some mice, rats, ants, or wasps (among other things) really do? The answer is a lot of damage. They can chew through wires (making your rewiring job a waste of time and money), they can cause sickness and disease, and they’re unhygienic. If the signs that they are in the property are obvious or will be picked up on a property survey, any buyer would likely think twice before committing to buying, or they might at least lower their offer.
Therefore it makes sense to check the property for pests and to get expert help to remove anything you find. Not only will this rid the property of the problem and protect your investment, but professional pest controllers can also put measures in place to ensure the creatures don’t come back.
Remember that some ‘pests’ are actually protected species, and bats are an example. If you find bats in your roof or loft space, you’ll have to be very careful about what you do and it may not be possible to make alterations to the house. This is why it’s so crucial to get an expert to help.
Focus On Modernisation
As a property investor who plans to flip properties rather than rent them out, there will always be a question of how much is too much? That’s because there will come a point where all the upgrades and improvements you’re making will stop adding value to the property due to ceiling prices in the area. At this point, if you keep doing work, you’ll start to lose money.
To be on the safe side, it’s ideal to focus solely on modernization to begin with. By upgrading utilities as we mentioned above, removing old wallpaper, installing a modern kitchen and bathroom, and making any additional changes that turn an old house into a new one, you can generally add value. When it comes to making changes just for aesthetic value, this is when you need to take a step back and look at the figures; it may not be worth it, no matter how great the result would be.
This will depend on where the property is, how much you paid for it, and what you can sell it for, of course. It’s best to speak to a local real estate agent to find out whether this would be a good thing to do or not.