Buying a property in the beginning can be easy and all it takes is finding a good investment opportunity and a place that needs improvement. The value of your property will go up, slowly but surely if you keep up with little upgrades like new paint or furniture. So, learning to understand the importance of how to make upgrades can help increase your property’s value.
What is the value of your investment property?
Given the current market conditions, it is important to know the value of your property in order to make an informed real estate investment decision. Reading trustworthy online reviews or getting referrals from relatives and friends might help you choose a trustworthy real estate agent. It might be a wise choice to hire an estate agent to help you buy Bend Oregon real estate.
There are many ways you can increase the value of your property, but some of the most common are as follows:
Collaborating with a professional real estate agent:
A professional real estate agent can help you identify any needed improvements or repairs, appraise your property for sale, and guide you through the buying/selling process. Their years of experience may also help you get a higher selling price than you would be able to achieve on your own.
Making necessary upgrades:
Upgrading your property can add value both now and in the future. Improvements that may be worth doing include things like painting the exterior, replacing roofing materials and windows, adding insulation, and updating landscaping or fixtures. Consider consulting with a professional home inspector to get an accurate estimate of what needs to be done in order to boost your property’s value.
In some cases, major improvements such as new construction may actually result in a drop in property values since they will command a higher asking price than older homes with updated features. consult with a local real estate agent.
How does the rent compare to building value?
When you invest in real estate, you’re inevitably faced with the question of how much rent the property will generate. On one hand, it’s a valuable metric to know in order to predict future income. However, on the other hand, building value is also an important consideration. With that in mind, here are three methods for calculating rental vs building value:
1) Net Operating Income (NOI): This calculation factors in both gross and operating expenses associated with the property to determine what a property could potentially generate in rental income.
2) Relative Rent Index (RRI): This index compares historical rental prices to corresponding building values in order to determine a measure of how over or undervalued a property is relative to its peers.
3) Cap Rate: This ratio measures the percentage of a property’s total value that is associated with income from rent–essentially, it provides an indication of how much return investors can expect on their investment.
What kinds of improvements are compatible with what type of property?
If you’re looking to increase the value of your real estate investment, you may want to consider making some key renovations.
Here are a few common improvements that can work for almost any type of property:
-Addition of new features or furniture: This can give your property added appeal to potential buyers, and may also justify higher asking prices. For example, adding a pool or spa to a rental property can increase its value significantly.
-Updating fixtures and finishes: If you have an older home, repairing or replacing worn or outdated fixtures and details can bring it up to date and make it more appealing to potential buyers. This could include updated paint jobs and new carpeting.
-Renovation of the exterior: This can be done in a number of ways, from simply painting the structure to completely changing the look of an entire property. With enough creativity, you can create a property that is unique and well-represented in your neighborhood.
List a few ways you can increase the value of your investment property
1. Keep up with the latest maintenance and upkeep techniques – Regularly keep up with property maintenance, such as painting and varnishing, caulking and sealants, fixing chipped tiles, installing new fixtures and hardware, etc. This will help reduce the need for costly repairs or replacements in the future and boost the overall value of your property.
2. Conduct market research – Be sure to regularly consult with local real estate agents, assessors and appraisers in order to get a feel for current trends and assess the potential market value of your property. This information can be invaluable in helping you determine when it is time to sell or take other strategic steps to maximize its economic potential.
3. Increase square footage/property size – If your property is situated in a desirable location with strong demand from buyers, consider increasing its size by adding on extra rooms or acreage. This can increase its resale value significantly and give you greater peace of mind knowing that you’re doing everything possible to maximize potential returns on your investment.
4. Take advantage of incentives offered by governing bodies (e.g., tax breaks) – Many municipalities offer attractive incentives (e.g., reduced property taxes, development