Return on Renovations
A HUGE thank you to those clients who purchased and sold with me in March and April. As I have mentioned in the past, your loyalty means everything to me and it was a pleasure to work with you.
In March I found a gem in the heart of Port Coquitlam and my investment partner and I jumped on the opportunity. Considering my latest project I decided this month’s topic would be on renovations and the smart way to go about increasing the value in your home.
As a realtor/investor I am constantly looking for great deals to come on to the market. I also have business partners who are interested in investing, mortgage brokers who can work magic, lawyers to write up contracts and I have the construction team to do the work. I primarily buy duplexes and renovate them and I’m not going to lie, this new investment needs a lot of work. My construction team has already started the task and everything should be completed in a few months time. I have added some before pictures of my project below.
The task looks daunting but believe it or not when you have the right people working for you it is almost effortless.
According to a survey done by Iposo-Reid two-thirds of homeowners are planning on doing some sort of renovation to their home. Some will spend an appropriate amount on smart upgrades others will spend lots of money on upgrades that will not necessarily increase the value of their homes.
When you renovate are you simply addressing your needs or are you adding luxury into your home for yourself? It is important even if you do not want to sell your home for some time to still consider the increase in value your home will have after the renovation.
According to the Appraisal Institute of Canada surveys say refurbished kitchens and bathrooms yield the best return on investment. This is of course keeping in mind spending $20,000 on renovating a kitchen you need to be smart when making choices about the upgrade. You are wanting to make the home more of your own but if making it your own is changing the cupboards to orange be prepared to change them again to a more neutral pallet down the road if you choose to sell.
A home that has been re-modelled will usually sell faster but it must be within the current trends and neutral. The number one rule is: don’t put a $30,000 remodelled bathroom into a $100,000 house. Your home will not increase in value dollar for dollar just by changing a bathroom. It is also important to stay away from projects that will set your home apart from other homes in your neighbourhood. Why you may ask? Well if the renovations to your home exceed the value of the average market value in your neighbourhood you will not yield much return on your investment. If you buy a fixer upper or a dated home and put money into the right places in the home and bring the value up to market value you will see a much larger return.
|The Top 5 Best Value Renovations
||Top 5 Worst Renovations
-Replacement of furnace or heating system
-Bright coloured carpet
-Very expensive tiles ($25/sq ft.)
As you can see above use your money wisely and make the right renovation decisions that will add to your homes value. I hope this information is helpful.
Why investment properties are a great way to increase your wealth?
- Over time real estate prices always go up in the Lower Mainland. That makes investing safe.
- Renting out your investment is like free money. Let someone else pay your mortgage.
- You can still get a deal. Looking for an investment that needs lots of work will pay off.
What is holding you back from your highest potential?
Is it the fear of risk? The truth is most people are afraid to take the plunge and buy a second property and that fear will keep most people from achieving wealth. Don’t let fear get in your way. Contact me and I will work with you and show you how easy this process really is. I have a number of business partners who have taken the plunge and are now seeing the financial benefit. People just like you can invest. It doesn’t matter if you are working part time or full time everyone can be an investor.
If you are looking to renovate your current home or are looking at investing in a fixer-upper give me a shout and I will connect you with the best renovation team in town. I will post pictures of the finished product soon. Stay tuned!
New Referral Program
I have just launched a new special referral program where I will buy you a new iPad mini for every referral that ends in a successful purchase or sale.
Don’t forget to connect with me through Twitter and/or Facebook Should you have any questions, feel free to get in touch by email or phone at 604.727.1500
Until next month!