When it comes to investment properties, it\u2019s all about the bottom line.<\/strong><\/p>\n That is, how much profit will you pocket when it comes time to sell?<\/p>\n While a well-selected investment property will appreciate naturally over time, there are things you can do to improve a property.<\/p>\n We asked real estate<\/a> agents where investors should be spending their money in order to secure the best possible return.<\/p>\n Flooring can impress potential buyers. Picture: Getty<\/p>\n<\/div>\n Jellis Craig Richmond sales consultant and auctioneer Travis Keenan says the quickest, easiest and cheapest way to get the most bang for your buck is to spruce up the floor and walls.<\/p>\n \u201cWhen they\u2019re ready to sell, new carpets and a fresh coat of paint<\/a> are relatively minor things that can be done to just liven the property up a bit, particularly if it\u2019s going to be vacant,\u201d Keenan says.<\/p>\n \u201cIf you\u2019ve got a single-fronted Victorian home, decent carpets, paint and polished floors can go a hell of a long way with the buying public. They can reap huge rewards.\u201d<\/p>\n The kitchen can help sell the property, but don\u2019t spend too much on creating a new one. Picture: Getty<\/p>\n<\/div>\n Robert Stein-Rostaing from Laing and Simmons, Bondi Junction, says kitchen renovations usually bring greater returns than bathrooms, but it\u2019s important not to over-capitalise.<\/p>\n Stein-Rostaing says his rule of thumb is that any money spent on property improvements should attract a fourfold return.<\/p>\n \u201cWe don\u2019t advise people on making changes unless we believe there\u2019s a potential for the improvements to return four times their investment. If they\u2019re going to put in $10,000 into the kitchen, we\u2019d want it to return $40,000, otherwise it\u2019s simply not worth it,\u201d he says.<\/p>\n \u201cIn the kitchen, it can range from putting in nice splashbacks to \u2013 if you can afford it \u2013 putting in new appliances, to tearing up the old linoleum that a lot of the investment properties have.\u201d<\/p>\n For many investment properties, the layout or strata rules will prevent significant structural changes. But Stein-Rostaing says that if there\u2019s the potential to add another bedroom, it can pay off big time on auction day.<\/p>\n \u201cOver the years it will provide a great return. Adding an extra bedroom is one of the easiest and quickest and best ways to add value from both a capital appreciation and rental perspective,\u201d he says.<\/p>\n But he warns that the initial expense can be prohibitive.<\/p>\n \u201cTo knock down an average wall, you\u2019re looking at $5000 minimum-plus. A decent sized wall will come in at around $25,000. Plus, the majority of investment properties are strata so you\u2019ve got to get them to approve it.\u201d<\/p>\n The styling of the property can make a big difference to potential buyers. Picture: Tamara Graham<\/p>\n<\/div>\n One of the simplest and cheapest ways to almost instantly bump your property\u2019s value in the eyes of prospective buyers is to spend a little money having it styled before inspections.<\/p>\n A couple of thousand dollars worth of professional styling and temporary furniture<\/a> can \u2013 like new carpet and a lick of paint \u2013 get buyers\u2019 hearts racing.<\/p>\n \u201cIt\u2019ll just create a little bit more interest. It\u2019s going to create a greater sense of competition on auction day,\u201d Keenan says.<\/p>\n Keenan advises against splashing out on significant changes that may be polarising for some buyers.<\/p>\n He says most potential buyers will want to put their own stamp on a property, and may not love the major cosmetic changes you\u2019ve just spent big bucks on.<\/p>\n \u201cWhen you\u2019ve got two or three buyers who know they can move into it and enjoy it and then add value over time, it means you\u2019re probably going to have a couple more people bidding at a property,\u201d he says.<\/p>\n \u201cYou\u2019re better off getting the simple things right.\u201d<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Focus on the basics<\/h2>\n
![\"construction\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/02\/15160851\/construction_flooring_getty_article-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nTake care with kitchens<\/h2>\n
![\"Kitchen\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2013\/08\/08142200\/Kitchen-2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nAdd a room<\/h2>\n
Get it styled<\/h2>\n
![\"Couch\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/04\/05154042\/Couch-2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nKeep it simple<\/h2>\n