How would you like to increase the value of your property, without having to wait for the natural growth of the market?
Our value-add strategy remains a favoured strategy that can help you increase the value of your property immediately, which has many benefits. Value-adding can be achieved in various ways, either through cosmetic renovations, major renovations, the addition of a granny flat/auxiliary dwelling or subdivision of your existing block.
By adding instant value to your property, it will allow you to achieve the following:
- Manufacture instant equity
- Grow your property portfolio
- Increase rent return & cash flow
- Reduce the length of vacancy periods
- Achieve a higher selling price
This all sounds great, but how is it actually achieved?
It is not as simple as getting tradespeople in to just do everything, in the hope that your property will be worth more in the end. A lot of due diligence and knowledge is needed here, to ensure that you actually increase the value of your property by more than what you spend.
At Aus Property Professionals, we will do all the due diligence for you to ensure that any work you do to the property will in fact add-value.
What Do You Look For?
We carefully look at comparable properties in the area that have recently sold, to ensure that you do not over capitalise. If similar properties are selling for a similar price to what your property is currently worth, but they have new kitchens and bathrooms, then updating these items should not be considered and we will look at alternatives which could simply be cosmetic such as painting and flooring, landscaping for better street appeal and so on. This will allow you to achieve a better return on your investment.
We also consider the demographics of the area, making sure that any changes you make will actually suit the people living there and their lifestyles. There is no point adding a 2nd bathroom to your property, when most people that live in the area are either singles or couples, with no children. You can better utilise these funds towards upgrades that will actually appeal to the demographics, resulting in an increase in value of your property and a higher rent return, which will naturally increase your cash flow.
Adding a secondary dwelling or subdividing your block can provide some great results. Having a feasibility is very important to work out how much the whole process will cost and what the end result will be, to ensure that it is feasible. This is where our experience comes in to play once again, as we understand the whole process for subdivisions and developments, and we will provide you with accurate advice. We will do all the due diligence with council, town planners, builders etc to ensure that the proposed dwelling or subdivision will in fact be permitted on your existing block.
It is important to know what work will get you the best results. We generally aim to increase your property’s value by $2-$3 for every $1 spent. In some cases, doing basic cosmetic work such as fresh paint, updating floor coverings or window furnishings can actually provide you with a better return on your investment than putting in a new kitchen or bathroom, so it is important to understand what upgrades your property will benefit from the most.
Our value-add strategies are all tailored to suit your specific property and the area that it is located in. There is no single strategy that will suit every property out there.