Your Questions Answered

Q: My wife and I have several investment properties and we are thinking of selling one. It has been rented for many years and needs a makeover before we sell. Any advice? Thanks Jerry C.

A: Renovating as an investor demands your personal wants and needs are put aside, with a focus on the bigger picture instead. Where your own home may allow you to indulge your every design whim, renovating an investment property demands a considered approach that appeals to the broadest possible target market.

Make sure you meet the market, and your competition, in regard to expectations for the property. If it’s situated in a blue-chip area, it pays to renovate with a more high-end spec as the market demands and expects it. Likewise, if your project is in a cheaper or more affordable locale, be sure not to over-capitalise.

Mass appeal

You can never go wrong with white, and timeless finishes can easily be made appealing to the individual market with clever styling. Cupboard fronts, bench tops and floors are very expensive to replace – keep them neutral to appeal to the largest subset of buyers. You want people to imagine themselves in the home and a neutral palette allows them to project their own ideas onto the space.

Key areas

When it comes to deciding which rooms to renovate, bathrooms and kitchens are key, as are outdoor living spaces if applicable to the property. And with these spaces, it is not all about expensive finishes - functionality is just as important. With the popularity of home renovation shows, buyers are a very savvy bunch now and many will immediately notice if a bathroom layout is dysfunctional or inefficient. With our enviable climate, the outdoors is such an integral part of the modern Kiwi lifestyle. If there is a way to blend your outdoor space seamlessly with the inside, do it. Think large areas of glazing that take in the outdoors, or bi-fold doors that open onto a deck.

Also, don’t forget your property’s façade. Most buyers usually make up their mind about a property upon arrival. As such, addressing its street appeal is very important in reeling potential buyers in.

It sounds obvious but you must always look at ways of adding the most value when renovating as an investor. If you add value to the property, you are more than likely increasing its sale price too.

www.thestones.co.nz thestones@raywhite.com