There are many different investment types, from stocks and shares to antiques and bonds, but in the current market, many people are looking to invest in property renovation. With the property market booming, there’s money to be made in quality properties which have been well-decorated and refurbished.
Whether you’re looking to go into property investment as a long-term investment project, or simply want to make more when it comes to selling your house, there are many pros and cons when it comes to property investment. When there is money involved, especially large sums of your own money, taking risks or making decisions can make these investment decisions more difficult to make. Let’s take a look at some of the pros and cons as to whether property renovation is a good investment idea.
Why Should I Renovate A Property?
There are many different reasons why you might be considering renovating properties as part of an investment. Homeowners may be looking to renovate their homes in order to upsize upon selling and getting the home of their dreams, or treat it as a long term investment plan, perhaps for retirement savings.
The main purpose of renovating may not be financial, as reworking house layouts with a modern approach can usually have a positive effect on the future resale value. No matter your reasons for renovating, it’s important to weigh up all your options beforehand.
What Rooms Are Good To Invest In?
Realistically, when it comes to renovating a house, not all rooms will need major work doing. This not only helps reduce the cost, but it means you can focus on the rooms that, when reselling, will generate the most ROI. There are some rooms which are worth investing in more than others and this is where you should look to focus.
The Kitchen
It’s a fact that kitchens sell houses. It’s the centre of the home and is where, with the right additions, you can make a great return on investment. Rather than a high-end remodel, it’s better to go for an average-price remodel instead so that, when it comes to selling, people aren’t put off or intimidated by such an expensive kitchen.
Buyers want to picture themselves in the space and, if they can’t see themselves relaxing or enjoying the room, they simply won’t buy. On average, investors who renovate a kitchen get back between 54%-77% of their total spend.
Bedrooms
When renovating a home for the purpose of reselling, many people tend to forget about the bedroom, but there are some simple things you can do to increase the value of the property. Try to keep the room as plainly decorated as possible, using muted neutral colours. Bright and bold colours can affect the space and put buyers off. Then, when people are viewing the house, add some personality with soft furnishings and duvet cover sets. Be sure to store away any bulky bedding items, such as weighted blankets or excess scatter pillows. Adding in built-in wardrobe storage can increase the potential re-sale value of your home, so if your budget allows, consider doing this. Most modern homes are severely lacking in storage, so this is an instant appeal.
The Bathroom
Modern developers instantly go to the bathroom when it comes to property renovations. But, large bathroom projects are more popular with high-end renovations, as opposed to your standard house renovation. Instead of completing redoing the bathroom, look to improve features already in there. Think better shower and tap fittings, an upgraded shower screen and boxing in pipes or boilers to make the room seem more spacious.
Conclusion
Deciding to renovate a property can be hugely beneficial and rewarding and, when done right, can provide a great ROI. As with all big investments, there can be hidden costs involved, so doing your research beforehand can help massively with your investment. Renovation is not for the faint-hearted and, in a lot of cases, the project can become a money pit. It’s worth doing if you have the time and budget to spend overseeing the project, especially if you’re looking to build a portfolio or put towards a larger saving goal.