Increasing the value of a property can be helpful in any case of transfer of ownership. Real estate is a stable investment and therefore very popular with many investors. Thus, before transferring ownership, you should have the property value calculated and consider the measures that can be used to increase that value. Even if you still want to use the property yourself, value-enhancing measures are a good investment in your housing value and also effectively increase your assets. For commercial real estate, these measures increase company assets. If a loan is needed, real estate will serve as a security for both businesses and individuals.
If you let the market value be determined, you will notice that different value-adding measures increase the real estate value differently. It depends not only on how much money you invest, but also on whether the measures increase the market value. Not every extra is rewarded by the potential buyers. If you do not know if you are staying at the current location, consider restructuring and modernization measures against the background of a possible later sale. The cultivation of a winter garden does not increase the real estate value as much as an equally expensive energetic renovation. If you decide to increase the value of the property, which increases the market value, you will be reimbursed the costs of a sale.
How can you increase the property value?
There are several ways to increase the value of the property. For a self-used property, it makes sense to increase the housing value in order to benefit from the measures themselves. Since a house is measured against the standards of new buildings when reselling, it is advisable to bring the property up to date technically. This can positively influence the valuation of real estate. Many homeowners invest in energy-saving measures such as better insulation and replacement of obsolete heating systems. You can also apply for state subsidies or a discounted loan for such a modernization. In addition, expansion measures increase not only the housing value, but also the real estate value.
Especially with smaller houses, the increase in living space can lead to a high increase in the value of the property. You can remove the attic, build an extension, put a dormer or use cellar rooms as living space. The most cost-effective measures are those in which the house itself does not have to be changed. However, you should not fail to obtain the building permit for additions. Keep the property value constant during use in order to keep the property value at least constant during use, you should make regular renovations. In this way, the traces of wear are eliminated and the property value is kept constant or even increased.
This applies to a due wallet change as well as the replacement of simply glazed windows in favor of energy-saving windows with triple glazing. Further value-adding measures include the construction of a garage or the redesign of the exterior area. These measures also have a positive impact if you commission an expert to evaluate the real estate. Increase the real estate value of a commercial property, commercial real estate is one of the assets of a company.
The higher these assets are, the easier the company will get a loan and can negotiate particularly favorable interest rates. In addition, companies can deduct from the profits the costs that need to be spent to increase the value of the property and thus reduce the tax burden. In the case of a sale, companies can claim the costs through a higher sale price. Determining the market value is particularly difficult for commercial real estate and can only be carried out by an expert.
Increasing the value of a property – What factors influence you?
Most important in assessing whether a value-enhancing measure is worthwhile is the question of the market value of the envisaged measure. If there is no buyer who appreciates a swimming pool, you will not be able to add the cost of building the pool to the purchase price. This investment therefore only increases your housing value. In contrast, energy-saving measures or modernization of the bathroom are usually associated with an increase in real estate value. A fresh coat of paint works wonders, freshly painted walls make the rooms look bigger and leave a neat impression. Especially recommended are bright, natural colors or white. Do not fuss with eye-catching colors or patterned wallpaper, after all, you also want to meet the taste of those interested in buying. Generosity in the sanitary area, the trend is large rooms – this is generally true for all living rooms, including the bathroom. Because possible buyers today do not want to do without a bathtub.
If you can offer a modern shower then you have the best chance of making a precision landing with most of them. So think about renovations that will allow you to increase the bathroom or modernize the sanitary facilities. A bathroom in the style of a small wellness oasis always recovers the money you have invested. Renovate the kitchen, open kitchen kitchens are very popular with many – not least because of the widespread rediscovery of the hobbies of cooking.
The more up-to-date the equipment, the more enthusiastic the interested parties are. However, new purchases are particularly costly in this area. Let yourself be advised by the kitchen expert and decide in case of doubt for a renovation. More space through cultivation, if you want to sell a house, an additional room can significantly increase its value.
Therefore, check whether it is possible to remove the roof truss or a previously unused chamber. If your garden is big enough and adjacent to the living room, you can create additional recreation space by adding a winter garden. If no garage is available, a carport can be built with little effort.
Tip: When you build, you choose ground-level and barrier-free solutions. This makes your property interesting for families where old and disabled people live. When selling a home, it is now mandatory to present the prospective buyer the so-called energy certificate of the property. He informs the new owner about which energy costs will come to him in the future. The installation of new windows and insulation as well as the modernization of gas or oil boilers is an important investment that not only pays off in sales, but also contributes to environmental protection.
About The Author
Jason Hartman is the founder of the Platinum Properties Investor Network, Inc. helping thousands of people to achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide.
May 1, 2018