Which rooms should I renovate to maximise my rental returns?
If you are planning on renovating your rental investment on a budget, it pays to know that updating specific rooms may deliver higher returns than others. There are certain rooms in a home that, when in pristine condition, will maximise your rental returns.
Projects such as updating a kitchen are a relatively large investment, while things like freshening up the paint and carpet in the master bedroom are less costly. It pays to do your homework and renovate wisely. Read on for our expert advice at One Agency Orange on the best rooms to renovate to maximise your rental returns…
Renovating your kitchen to add value to your rental investment!
Renovating a kitchen can do wonders in adding value to your home, but it comes at a cost. If you keep within the rule of thumb that you shouldn’t spend more than five per cent of your property’s value on a renovation, updating the kitchen in your investment property could be a worthwhile option for some people.
The amount you spend on your kitchen renovation will depend on the finishes and what you choose to update. No matter what you update, make sure the final look fits in with the era of the property, so it’s cohesive. Common kitchen updates that can help you maximise your rental returns include adding appliances such as a dishwasher and creating another place for people to gather with a breakfast bar deep enough to add some stools.
Beautifying the bathroom to budget!
Bathroom updates can range in price as much as a kitchen. It’s important to remember that bathroom updates can be fiddly. Factoring in a 30 per cent allowance on your budget will ensure you have the money to spend if something doesn’t go as planned. Updating to a more modern vanity and a new shower screen can lift the entire bathroom.
Adding advantages with an extra bedroom!
Converting an extra living space into a bedroom can be done providing there isn’t too much structural work required. Adding an extra bedroom can open your property to many additional prospective tenants while improving the likelihood of significant capital gains when it comes time to sell the property.
Need some more information or expert advice?
If you’re thinking of updating your rental property, focusing on the kitchen, bathroom and potentially adding an extra bedroom could see you not only maximise your rental returns now, but you could attract a higher price when you sell the property.
Drop in or give us a call at One Agency Orange today for some expert advice on renovating your rental investment on a budget. Contact our office on 02 6362 9560 to arrange a time.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.