There are numerous discussions on property investment and its capacity to usher one into a realm of financial freedom. It takes a lot of persistence, preparation, and a keen eye to make your property profitable.
Most property owners want to make their property profitable because of the financial gains they’ll get from selling it or from giving it out for rent. However, there is an added advantage to making your property profitable, and it’s that it’ll increase the loan to value ratio on your home, which will make you eligible for mortgage financing. People seek mortgage financing because it helps to reduce interest rates, cost of debt, and increase credit score. For more information on mortgage refinancing, you should find out all the useful details here.
Wondering what can help? Continue reading this article for ways to make your property profitable.
1. Make it more attractive
How your home looks on the street is highly important to make a great impression on a prospective buyer/renter. If the buyer doesn’t perceive your house to be of top-quality, he won’t approach you for purchase, and if they do, they’ll make an offer that’s ridiculously low.
Also, ensure that your landscaping is properly maintained so that you can boost your curb appeal. If you find it looking duller than the houses in the vicinity, then it’ll be priced lesser than those houses.
2. Make it low-maintenance
Since most buyers have a fear of purchasing a home that’ll constantly need repairs, replacing some important components of your property can calm their fears and make your property profitable.
Minor improvements on things that make it easy to maintain and clean may also increase your home value. You should consider replacing high-maintenance wood siding with vinyl siding or an easily stained carpet with hardwood floors.
3. Increase its efficiency
Basic energy conservation features can do the trick of increasing your property profitability. It’ll reduce the cost of running the property and will make it more valuable to buyers and evaluators. With this, you will experience a more significant jump in profitability if you reside in places that experience extreme cold or heat.
Consider enhanced attic insulation, double-paned windows, LED lighting, and other tips for creating a more eco-friendly apartment.
If you desire something bigger, then you might consider placing solar panels on the roofs of your home. This way, new home users will spend less on electricity bills, which will result in an increased home valuation.
Schedule an assessment with a utility company or a certified energy auditor to know where your property is wasting energy and the upgrades that are apt for that.
4. Increase your property size
There is a direct relationship between the profitability of a property and the square footage. Per square foot is a way for most prospective buyers, tenants, and prospective evaluators to compare homes with similar upgrades and style. Larger homes command better value, and even when the appraiser doesn’t notice it, chances are higher that the buyer/tenant will notice and opt to pay more for it.
The obvious way to create a space is to add an apartment, but you can also build a deck or basement.
5. Make the house smarter
Safety-enhancing gadgets are one of the features that buyers and renters desire in an apartment, and statistic shows that the demand is on the increase. Although smart tech won’t necessarily increase a home value, it considerably increases the desire of “techie” buyers and tenants to pay more—this increases your property profitability.
Examples of safety-enhancing gadgets are fire detectors, carbon detectors, door locks, security cameras, lighting, and thermostats.
Making a property profitable is the ultimate aim of every property owner. However, it requires top-notch knowledge of the factors that affect the value of a home. Whether you want to make your property profitable to increase your asset value, increase your passive income, or seek mortgage refinancing, the methods described can be helpful in achieving that.