More than two million Australians own an investment property, and a recent Mortgage Choice annual investor survey found 40 per cent of investors wish to keep their investment property for “at least 10 years.” Owning a property long-term involves a significant amount of upkeep and it’s prudent for landlords to factor money into their budget for renovations, not just property maintenance or upkeep along the way.
Adding value to your investment through renovation or refurbishment can not only make your rental property more appealing to tenants, but can also help you secure a higher rental value. However, it’s important to avoid over-capitalisation of your investment - so how can investors ensure they get the best return on their renovation dollars?
Quick cosmetic improvements, such as fresh paint, new carpets, updated window furnishings and modern light fittings, will directly impact the desirability and leaseability of your investment property.
Bigger ticket items on the wish list of many tenants include dishwashers, gas cooktops, heating, air-conditioning, timber flooring and adequate built-in storage. With most new developments now offering many of these features as a standard inclusion, it’s important to keep up with the market wherever possible.
Whilst renovated kitchens and bathrooms are highly desirable, these rooms are the most costly to renovate so it’s worth seeking financial advice on how to best time these updates if required - they are deemed to be improvements and need to be depreciated over time within your tax return.
In a competitive rental market, it’s important to review the desirability of your investment property. Regularly seek the advice of your property manager for their opinion of any possible improvements or updates your property could benefit from. Of course, these renovations must be done hand-in-hand with timely property maintenance to ensure the overall condition of your rental property is maintained adequately.
Our award-winning property management team have the expertise and market insight to ensure you’re maximising your return on investment. Contact us today on 9091 1400 for a rental comparison or complementary investment report.