Thinking of getting an investment property?
The latest figures from Propell show the continuing rise of property prices across many of Australia’s capital cities. Sydney and Melbourne both took the cake, with the former recording a 19.8 per cent growth in median house value and the latter seeing a 12.3 per cent increase.
The market’s currently soaring prices can make it tough to look for an investment property within your means. One of the more popular ways investors can tackle this is by buying a smaller property with fewer features, and then boosting its market value by making alterations to the home. These include tearing down walls to make way for new rooms, rearranging kitchen spaces, redoing the floors, and more.
But not all renovations are made equal. While some are effective in increasing a property’s value, others might simply not be worth the dollars.
Swimming pools might stand out as a fun feature to add to a house, but many families don’t want to deal with the hassle of pool maintenance or the possible dangers posed to their young children.
Converting a bedroom
A property’s bedroom count is one of the most important things buyers and renters look for when viewing property. Turning a bedroom into a study or interest-specific room might seem like a good idea, but you risk decreasing your home’s value if buyers see that drastic changes need to be made turning it back into a bedroom.
Carpeting rooms might do little to increase property value, as there is currently a greater preference for natural hard wood floors. Not to mention, there is growing health concerns regarding the chemicals used to process carpet.
These tips will give you a better picture if you’re out looking for that investment home loan. You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.