The rental market in Australia is hot property at present as interest rates are at their lowest and rents are at their highest. This is a dream come true for any investor say realtors, as median house rents have increased in most capital cities. Plus, other types of dwellings have also seen an increase in price.
Melbourne rental property prices, for instance, have increased by an average of $5 a quarter, over four quarters. Across Victoria, annual rental prices rose by 2 percent. New South Wales weekly rental, according to state government figures, jumped 1.2 percent over the March quarter, and by 3.8 percent over the last year.
How you can add value to your rental property
However, rather than just relying on market increases in rental prices you can also add value to your rental property in a number of ways. These are as follows:
Update appliances – If your rental property has old, out-dated appliances then updating these can allow you to ask more for your rental property. A new dishwasher, oven, cook-top and air-conditioner can also be depreciated over-time and used to reduce your taxes.
Paint the property – A fresh coat of paint and a refreshing look inside and out can add a modern touch to an otherwise out-dated property. Plus, it protects the interior and exterior from damage.
Replace flooring – Old tired carpets, tiles or floor-boards can look unsightly and, in some cases, can represent safety hazards. Replacing flooring can add a dynamic look to a property and increase the comfort of a tenant. Plus, you can increase a property’s rent after you make improvements.
Know what costs are involved – Calculate how much it will cost you to make changes to your rental property and how much you can increase rent by after these changes have been made. This will allow you to calculate how long it will take you to recoup the cost, and to set yourself a realistic budget for making changes.
Research the market – Sound property buying comes from knowing the market. Research different areas. Look at property sales in those areas and work out what determines a ‘good buy’. Know your price margins from low to high and always be prepared to negotiate a better deal. Buying a property for less can mean that you’ll have more money to up-date the property and make a better rental return.
Do you want to know more about property investment loans? If so, then contact eChoice today.