As a real estate investor, making your property appealing to potential buyers or renters is a step in the right direction towards getting a return on your investment. While you might want to stray away from full “fixer-uppers” (at least until you gain enough experience), there are some renovations you might want to consider to add value to your investment property.
The floor throughout your property plays an important role in the renovation process. Is there carpet throughout? Or, can you find the hidden gem of original hard-wood? Figure out what interior look you’re going for, or look into current trends. If you want to keep the originality of the flooring, you can have them sanded and refinished for a fresh new look.
Updated Kitchens and Bathrooms
As we’ve mentioned, a full flip is a significant challenge unless you have the experience and resources. But, rest assured, there are a few great ways to update a kitchen without completely breaking the bank. Kitchen cabinets are often a focal point of what potential tenants or buyers are looking for. Cabinets are great to work with; if they have a good base and minimal damage, a quick sanding and fresh stain or a new coat of paint can go a long way. Finish them off with new hardware to complete the updated look. For countertops, you may want to consider replacing them if the current ones are dated.
Paint, Paint, Paint
A fresh coat of paint in each room goes a long way in “sprucing” things up a bit. Choose popular colors that are surrounding what’s currently trending. This is where you can have a little fun and figure out what potential renters or buyers are looking for.
Your focus shouldn’t just be directed toward the interior of your property; exterior matters just as much. Make sure your investment property is appealing to anyone that might be interested. Keep the grounds maintained well and consider a few different landscaping or garden options. The property being well kept on the outside is a great first impression.
Recently, the problem of housing has come to dominate the conversation in many countries around the world. The UK, with its tradition of council housing, has faced shocks to its system. Housing is more and more out of the reach of many working people there. The US is facing a housing crisis, too. Migration of millennials to cities has created increased demand for housing there. This has driven rents up and out of the reach of working-class people. It almost seems that no matter where you are, rents are soaring up and reasonably priced homes are far and few between.
A companion problem is that working-class wages have stagnated since the Great Recession. Working-class people often lack cars and can’t find a workable way to make a move to the suburbs. All of this has created a seemingly intractable housing crisis in cities like New York, San Francisco and Los Angeles. All of this has been immensely frustrating, both for the people who live in these cities and for politicians. However, there’s also a great opportunity in this crisis, if only people will take the time to think it through.
Currently, four out of ten low income people are either homeless or spending over 50% of their income on rent, which is unsustainable in the long-term. The US is short by at least several million low income housing units. This is a tremendous opportunity for investors, if they are able to play it right. Social housing in the United States often gets a bad name. However, there are real advantages to landlords when it comes to dealing with social housing programs.
For example, section 8 arrives on time every month. Renting to lower income tenants can mean missed, partial or late payments. Dealing with government agencies means much more reliable cash flow, even if there can be a lag initially. Social impact investment firms have also made affordable housing one of their pet causes. Groups like Turner Impact Capital and Building Opportunity have made it a point to focus on affordable housing. This investment takes many forms, from crowdsourcing online to REITs.
Avalon Communities, a company known for providing corporate apartments, has also shifted their focus to renovating older buildings for more middle-income and lower-income clientele. As these big investments by big players demonstrate, there’s a very healthy future in providing low income housing.
Countless successful investors have a diversified portfolio that includes select real estate investments. Due to the cyclical nature of the nation’s economy, there are times when it is naturally more advantageous to invest in real estate. Real property, whether residential, commercial, or industrial, is generally considered a long term investment. Decades of economic growth and recessions have proven that no type of investment can be considered safe or recession proof. However, there are several proven ways to designate investment portfolio options in a way to prevent unnecessary fluctuation. Real estate investments can be safer than many other investment vehicles during the inevitable storms of recession.
Investing in rental properties has been a lucrative career move for many different types of investors. Whether experienced or novice, real estate investors soon learn the ins and outs of successful property rentals. Individual rental properties such as single family homes, townhomes, condominiums, or duplexes are a great starting point. These investments, when properly managed, will provide some protection against inflation and recession.
The key to safer real estate investments during a recession is to carefully select renters. When taking on a new tenant, consider their consumer credit, employment, and criminal background. This will provide a fuller picture of the individuals before they sign a lease agreement. Reducing turnover and keeping rental units occupied are essential for long term investment strategies to be successful. Shelter is necessary for survival and tenants are not going to stop paying rent during a recession. They may discontinue cable subscriptions or gym memberships, but they will maintain their housing.
Depending on the location, a real estate investment in vacation property can provide consistent income year round. Especially when the location of a property is located in popular vacation spots like Miami, New York, or Las Vegas. Unlike standard rental properties which require ongoing property management services, vacation properties are relatively simple to manage. Turnover services may include simple tasks such as cleaning, providing new linens, and managing inventory supplies. These routine turnover items can be contracted out to a local service provider for a very low fee.
Whether a new investor decides to purchase a modest home for the intention of renting to a family or has the resources to purchase an entire apartment building, they will likely find that real property is a worthwhile investment. Rental properties provide consistent income streams and virtually pay for themselves over time.
While California may have a reputation for being one of the most pricey real estate markets in the world, it has proven to be one of the best areas to invest in. Investors who are looking to get single family real estate properties have a golden opportunity to do so. The golden state offers up gorgeous beaches, vibrant culture, and an ever-growing population for those looking to invest. With the land of opportunity awaiting new investors, the opportunity to capture returns on the rising home values is just around the corner.
California has an extremely strong job market which serves as one of its most attractive attribute to investors. The state boasts 54 of the Fortune 500 companies headquartered right here in their very own backyard. The market shows that California will continue in job growth, and will provide investors with a continuous cash flow as more and more people are flocking to the state.
While the rising cost of homes is pricey in the area, the state has rather low property taxes. Though California may not have the lowest property taxes across the country, the tax rates are aimed to help those investors who are looking to improve the flow of cash. Low tax rates mean that more and more people will continue to buy and rent in the area. Any area that people may feel they can capitalize on, is one in which they should consider to invest in.
There is an extremely high rental demand in the state of California. Everything from work, weather, entertainment, outdoor activities, and the overall growth has helped to make investing in California real estate one of the smartest financial moves right now. As this growth continues, the rental rate within the state will continue to go up over time.
Between the job market and desirable lifestyle that California has to offer, it only helps to increase the home values in the state. The housing market is one in which the most desirable areas to live constantly attracts new home buyers. This presents a high demand for the areas which in turn increases the property value in the state. This is just an additional reason to invest in California based real estate.