Maintaining your property for profit
Maintaining Your Property for Profit
Buying property is one of the biggest (and best) investments you will make in your life.
So of course, you want to look after it. Whether you plan on being in your home for a short period or putting down some roots and staying for the long haul, it pays (literally!) to think of your home as you would an investment property.
Even if it is your primary residence, and you have no plans on leaving, you should always be maintaining your property to a high standard so that you continue to build value through capital growth
Here are some handy tips for ensuring that if and when you do sell, you are in the best position to do so.
Short term pain, Long term gain
Over time, all properties go through the expected amount of wear and tear. Staying on top of any of these little issues will prevent them becoming big and costly headaches further down the track.
- Clean your gutters and have your roof inspected regularly to prevent leaks before they become a major problem.
- Have professional pest maintenance done. Some companies even offer yearly subscriptions and contact you to remind you when it’s time for your spray!
- View your property like a business, just as you would an investment property you don’t occupy. Think of maintenance costs as an investment in your business, not as an additional expense.
Maintain, Maintain, Maintain
Many homeowners will fall into the trap of putting up with issues around their home, like a door that doesn’t close properly, carpet that should have stayed in the 80’s or peeling paint, and only fix them when they go to sell.
Staying on top of these issues from the beginning can pay off in the long run.
- Declutter spaces regularly. A major part of preparing a property to present for sale is creating a peaceful, spacious vibe, and if you keep it as close to that as possible, you will not only enjoy your space more but there will be much less to do when you do go to sell.
- Know when to DIY. Some jobs around the home just require a but of effort and elbow grease, but others are best left to the professionals. For example, painting, while time consuming, can be done by a novice home improver, while plumbing or electrical should always be done by an expert.
- Street appeal makes a difference. Allow time for plants to grow to create a welcoming environment, both for the time you live there and for when you go to sell. Keep grass and outdoor features well maintained.
Know Your Area
If you are an owner-occupier this should be easy. It’s about knowing the local neighbourhood, the kind of people who live there, the local schools and amenities and how close it is to other landmarks or CBD’s.
- Keep an eye on whether nearby houses are being renovated or improved. If so, this is good news for property prices in your area.
- As local property prices increase, so too does the ability to use some equity to improve your home or put towards another property. Either option is beneficial for growing your personal wealth.
- Understand how your property compares to others in your area to understand what you should be investing in your property to where you should hold back, to ensure you are making worthy improvements while not over-investing.