6 Ways to Add Value to Your Investment Property

Whether you're looking to sell or upgrade, there are a few sure-fire ways to add value to your investment property with some clever cosmetics. Here are our best tips:

A fresh lick of paint

One of the quickest and easiest ways to give your property a new look and coordinated interior or exterior is a fresh coat of paint. Painting can be relatively inexpensive, whether you decide to do it yourself or hire professionals. Look out for this season's new colour forecast's for the latest trends.

Update your investment property fittings

One of the first things buyers or renters tend to look at are the doors and cupboards, lights, locks, curtains and blinds. Make sure these fittings are all functional, and consider upgrading any old or mismatched fittings.

Kitchen refresh

Redoing an entire kitchen can be expensive but the kitchen is one of the most important rooms in an investment property. Many buyers or renters prefer an open-style kitchen so if you have a traditional closed-room kitchen you may want to consider removing a wall. If you're not looking to make structural changes, you can replace benchtops, sinks or even cupboard fittings as a quick, inexpensive way to spruce up the kitchen.

Buff the bathroom

Everyone likes a sparkling bathroom, so pay close attention to cracked tiles, worn or mouldy seals and leaking taps. Like kitchens, bathrooms should also be stylish, modern and functional. Replacing broken towel racks or dripping shower heads can make a big difference, while new mirrors and lighting can be a great finishing touch to make the bathroom feel more spacious.

Add a bedroom

The three major factors that drive a property's price are the location, land size and number of bedrooms. While you may not be able to change the first two, adding a bedroom can make a significant change in the value of the property. Make sure you speak with an architect for this sort of renovation and don't forget you'll need council approval for your plans.

The great outdoors

Australians love the outdoors, a real attraction for buyers or renters is space where they can entertain, just by simply turning a small balcony area into an outdoor entertaining area with a barbecue and herb garden can add value, there are endless possibilities for your extra outdoor space.

Before you start any investment property renovations, think about your budget. 

Ten Tips for Budding Landlords

Buy-to-let is booming and, for savvy investors, it can be an obvious place to put your money if you want to save for the future. However, becoming a landlord doesn't come without its pitfalls, so here are a few tips to help first-timers avoid some of the common mistakes:

1. Buy property that appeals to those wanting to rent. Flats and two-bedroomed homes appeal to a lot of potential tenants, especially those who struggle to buy their own home. Stay away from large houses which can be expensive to rent, and often put people off.

2. Don't go for that stunning period cottage. You may want it yourself, but remember you aren't going to be living there and a new property will mean less maintenance over the years.

3. Don't just buy a property in your local area. Look at areas where people want to live for a number of different reasons - good schools, commutability, good transport or also where students may want to be based.

4. Location, location, location. As with any property, you don't want to be going to run-down areas as this can attract poor-quality tenants, but at the same time you don't want somewhere too affluent.

5. The type of mortgage you get is important. Whether it's a buy-to-let or a repayment is down to you, but if you get a rental income which covers your mortgage then you are doing OK. Think about getting a fixed rate if you are worried about rising interest rates and go to more than one broker.

6. Consider using a letting agency. Shop around and find the best deal as there are plenty of letting agencies out there. Don't worry about trying to haggle with them, especially if you have a few properties - you should be able to get their fee down to around seven per cent.

7. Beware of the letting agency 'add ons'. When it comes to doing maintenance on your property letting agencies can charge an 'admin fee' - but you don't have to put up with that. You already pay a monthly fee and this should cover any work they have to do.

8. It's not what you know, it's who you know. If you know anyone who rents out property have a chat with them, find out what they have learned from doing it - they may know a good plumber or electrician, or can possibly refer you to an efficient letting agency.

9. Do the maths. Before you make a decision check you can afford to cover any eventualities such as replacing the boiler. Also, filling in the tax return forms isn't a piece of cake - think about employing an accountant.

10. Make sure you are doing the right thing - remember you are putting your money into something that may fall in price over the next few years. The property market is unpredictable, but then so are stocks and shares.