One tried and true technique for increasing the sale value of an investment property in Perth is to make cosmetic improvements that enhance the aesthetics of the property. When multiple bidders are involved, this can drive the price upward and result in a nice return for the investor.
However, many “improvements” and renovations can actually decrease the value of your home. Here are six “improvements” to avoid.
Tree Removal
Many sellers believe that they are enhancing their investment property by removing all of the trees but the opposite is often the case. In many Perth suburbs, one tree that is large and attractive can enhance property value by as much as $15,000. Buyers purchase with emotion!
Trees provide shade and aesthetic value to a property. The only reason to remove a large tree is if it is damaging the property in any way. Otherwise, you could be costing yourself $15,000 in addition to what you pay the tree remover.
Unnecessary but Expensive Fittings
While many think that fine details such as imported door handles, taps, tiles and cook tops add value to a home, they often don’t. That sticks the seller with the price they paid for the fittings — this is especially true if the surrounding neighbourhood is below the median Perth house price.
We recommend using Australian-made products in the middle price range. This can save you up to $20,000 on renovating, while still maximising income on the sale.
Unqualified DIY
Leave the plumbing and wiring to professionals to ensure compliance with local codes. Get it done right the first time and you will pass any pre-purchase inspection.
Inappropriate extensions
An extension should look like just that — an extension of the original home. Always take the original design into consideration when adding any extension to your investment property. An ill-conceived extension can devalue a home by up to $20,000 to $30,000 by limiting your market of buyers, in Perth and suburbs.
Where is My Back Garden?
Obliterating outdoor space that would normally be used for recreation can also devalue your property especially if the house would otherwise be ideally suited to families. In the Perth market, families still want some grass and space for outdoor living and many families will simply not inspect a property that has a concrete jungle.
Non-compliant structures
Make sure everything is legal and compliant. This is a no-brainer.
Call 1300 472 427 to learn more about how best to add value to your property ensuring you get back more than you invest.
