There are many ways that you can make money from real estate investments. The most popular is to purchase a property and wait for it to appreciate as the market improves. Oftentimes, investors will make renovations to the property during that time in order to increase their returns. This can greatly decrease the volatility of your investment because renovations often create a higher demand for your commodity. As you invest money improving a property, your chance of selling at a higher value increases significantly.
But not all renovations will yield the results you want. Make sure you invest in renovations that are worthwhile, like the following:
1. Install a Gas Fireplace
This is a simple renovation idea that can make your home look much more valuable. A fireplace creates a homey effect that can’t be achieved through paint colors and décor alone. Gas fireplaces are preferred over wood fireplaces because they’re safer, more economical, and easier for homeowners to operate.
There are several things to consider with your fireplace design: the first is the mantel. The design here should match the style of the room. Right now, stone mantels and white painted mantels are very popular in both modern and historic homes.
The kinds of gas logs you use are also important. Gas logs should be attractive and efficient. Most people like their gas logs to look like real wood. It’s important to research gas log types that add the most value to your fireplace installation.
2. Paint
Whether you do it yourself or hire someone, new paint (interior or exterior) is highly affordable and offers great returns. This is especially true if the paint replaces paneling or popcorn ceilings. Nothing screams old and outdated like a poor paint job, ceilings, and walls.
You can see as much as 80 percent ROI on your exterior paint job and 100 percent or more return on your interior work. However, this will only come to pass if you’re using a shade of paint that’s more neutral and attractive to a variety of buyers. Your favorite color might be pink, but that doesn’t bode well with the majority of buyers looking for their dream home.
3. Add Landscaping and Curb Appeal
Curb appeal is a term used to describe the first impression buyers have of a property. Because psychology shows that we pass judgment within the first 15 seconds of seeing something, getting your curb appeal right is very important.
Landscaping is the most important part of improving curb appeal. Consider hiring a professional landscaper for the initial design. A pro can introduce features like curved sidewalks, perfectly tiered shrubberies, beautiful grass without brown spots, and other outdoor features that will make your yard sell.
Some other curb appeal additions that are worth their weight in gold include:
- Exterior paint
- Siding updates
- Trees
- Outdoor lighting
- New front door
- New windows
- Outdoor shutters
- Repaired sidewalks or driveways
- Patio/Deck
These are just a few of the many changes you can make to your home’s exterior in order to get the most bang for your buck.
4. Improve Lighting
No buyer likes a dark living space. Human beings are naturally drawn to sunlight and bright spaces, which is a must in your home. Anyone looking to maintain their home’s value will focus on getting the light just right. They should begin by adding natural light to spaces and appropriately spacing artificial lights throughout the home.
On the flipside, there is such a thing as too many lights. Light is very good for most of the day, but you can significantly improve a living space by offering the option to remove some of that light occasionally. Adding dimmer switches in each room is a simple touch that can make a dramatic change to improve overall value.
5. Do a Major Renovation
If you have the money and you want to make a dramatic house-flipping-style transformation to your home, there are some major renovations that will do the trick. Here are some renovations that both homebuyers and your bank account will love:
- Plumbing and electrical
- Bathrooms
- Kitchens
- New flooring
- New siding and insulation
- Roof replacement
- Furnace/HVAC replacement
In most situations, each of these renovations will add considerable value to any space. However, as a word of caution, make sure the renovation you choose will really add significant value to your home.
Consider the tips listed in this article and decide what’s best for you and your investment.
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The gas fireplace is an interesting proposal. I had no gas line to my house and assumed it was therefore out of the question. But when I contacted the utility, they said they were willing to install a line at a low cost IF I connected a certain number of gas appliances to it immediately.
“Your favorite color might be pink, but that doesn’t bode well with the majority of buyers looking for their dream home.”
So true. And the same applies when renting out a property you own. There’s a reason why shades of beige are so popular – although they’re not terribly exciting, they match everything and complement pretty much any color of furniture and other decor.