Welcome to our blog!
Our blog will cover important topics, insights, information, and strategies regarding real estate. You will find posts and articles about topics like asset acquisition, BRRRR properties, real estate financing, property flipping, legalities, local market studies, property improvement guide, property management lessons, and evaluations of rental properties. We provide the full spectrum of real estate services, and we will ensure that our blog is reflective of our competence and expertise.
Whether you are a first-time investor, a seasoned player in the market, someone interested in syndication, or you are simply looking for tips to manage your property, you will find something helpful on our blog. It’s not a finished product yet, and hopefully, never will be, because we will always be adding more to it: More articles, more blog posts, and more tips and tricks. We want investors to find the right resources here that may help them make good decisions and create actionable strategies. We also want to help people who simply want to test the waters and find out as much as they can about real estate, before actually entering the market. For them, we will try and write stuff that will give them the right knowledge and footing to make intelligent decisions.
There are some things you can’t learn without experience, but we hope you find everything else on our blog.
Most up to date and detailed Real Estate blog,
Property Improvement - How It Affects Your Investment Value
February 12, 2020|Property Improvement
When you invest in a real estate property, you don't just see what it is; you see what it can be. A fixer-upper in a nice neighborhood can be worth significantly more than a pristine property in an average neighborhood. This is why it's crucial to evaluate investment properties for what they could be after improvement.
This is also what makes real estate relatively unique compared to other investments. There isn't a lot you can do about improving the value of your stocks or GICs once you have bought them. But if you own a property, you can enhance and completely transform it to make it more desirable, and to increase its value for both capital gain and better rental deals.
How To Improve Your Investment Property
Whether you are putting your property up for rental, or you are planning to hold and sell it for capital gains may have a lot of impact on how you improve your property. For a rental property, you (or a managing service) will be responsible for the continued maintenance of the property. So you can make improvements gradually, and over a more extended period. The income from rent can be used to fund property improvement projects.
But if you are buying a property just to sell it for a higher price, you have to do things differently. If you are purchasing a property at the right time, and your plan is just to sell it when the market rises, you might not have to make any improvements to increase your capital gains. But what you may not know is that with relatively little investment, you can significantly improve the property and enhance its selling price.
This is where professional investing consultants come in. They can help you evaluate a property and make a rough estimate for improvements and how well those improvements will translate to your returns. This can help you make up your mind about improving your property. Some of the things you can do to increase the value of your investment property are:
1. Power wash and install lighting fixtures. You will be surprised how much difference a simple power wash can make on the exterior and curb appeal of a property. And inexpensive lighting fixtures and create a welcoming look for your property at night.
2. Modernize your property. A few simple things like smart lights and simple security features can help your property fetch much better rents (or prices). If the underlying structure is too old but reliable, you can also go for a classic and rustic makeover to add grandeur to your property.
3. Work on the fundamentals. Whether you are renting out your property or selling it, underlying faults in plumbing or heating systems can seriously undermine its value. These are necessities that you shouldn't do a cost-benefit analysis for because, without them, your property might not sell at all, or go for a painfully discounted price.
Final Words
If your property doesn't need fundamental repairs or improvements, you might be tempted to keep it as it is, and not invest any more than the capital. But that will be underutilizing the potential of a property. It is also important to understand that you cannot compensate for a bad location, no matter how much you invest in improvements.
This is why you should not reject a property simply based on how much improvement it needs, especially if it's in a great location. Professional services that have the experience of assessing several properties can give you a very clear idea of how much the improvement will cost you, and will you see the desired returns afterward. If you add that estimate into your capital investment, you will have a better understanding of your ROI (return on investment), and you can decide whether the property is worth investing in or not.
www.oceancountyinvestments.com
(732) 703-6887
Copyright © 2020 Ocean County Investments - All Rights Reserved.
Share this post:
Sign up for blog updates!
Join my email list to receive updates and information.