With different areas around New Zealand showing various rates of capital growth and rental returns, some investors are looking to be more proactive when it comes to increasing the value of their property. (Or just making it more appealing to perspective tenants)
Whether you are planning on selling in the near future, or just looking to ensure that you attract quality tenants with an increased rental return a renovation that is done well can provide strong returns.
The most important thing when renovating is to minimise costs so your outlay doesn’t exceed your expected return, whilst also ensuring that the works completed are in line with what a potential tenant would desire. Obviously, a renovation in Merivale is going to require a very different finish to a property in other parts of the City.
With this in mind, we’ve put a few tips together so that if you are thinking about renovating, you’ve got a place to start…
- Take the time to specifically set out in writing a plan for the renovation and a desired outcome
- Talk to your property manager- different renovations will be more attractive to tenants than others
- Determine your budget and don’t exceed that amount
- Visit displays homes to look at current design trends
- Keep your renovation functional and utilise space wisely
- Try not to personalise the renovation
- Keep as much storage space as possible
Minimum Outlay for Maximum Return – Where to Start?
Just changing these few items can have your property looking and feeling dramatically different!
- Consider Floor Boards – Especially in the Living and Dining Spaces
- New Paint – Focus on the walls, these are seen a lot more than the ceilings!
- Carpets – Especially in the Bedrooms
Electrical – Replacing Power Points and Light Switches can dress a room up for not much cost at all.