We property investors always look for the best property deals. If you’re a “friend” or a “loyal customer”, buying investment property from a developer can help you save oodles of money. However, the property may be quite expensive. You should be cautious when buying investment property in the sub-sale marketplace. There are many more defective items that you will need to repair.
If you feel that an older property has the potential to appreciate shortly, or it is in a great location, you may still be able to invest in it. All you have to do is remodel it or decorate it. The costs of renovating an old property can add to your cash outlay and increase your expenses.
You can repair minor defects like cracks in walls, wiring and electrical, plumbing or painting. Other problems like termites or white ants infestation should be taken into consideration. All of these problems must be dealt with immediately.
The property you are buying is likely to need major repairs. If you are looking to purchase an old property to make investments in, it is worth spending your own money to inspect and repair.
The property’s current value must not exceed 40% for renovations.
If you can see that the renovation costs exceed 50% of the property’s value, you can decide to sell the property.
Renovations should be practical and useful.
Some areas that need attention include the living and dining area, kitchen, toilet, bedrooms, and bathroom. It is best to upgrade the electrical wiring and plumbing systems simultaneously. Potential buyers might not like the idea of paying money to convert a portion of your living area into a bigger porch for the car. If you’re buying a second-hand property to personalize, you have the freedom to do what you like.
The budget for renovations must match the needs of the area.
It is a smart decision to spend RM 300k on a property whose property market value exceeds RM 500k. However, ensure that the property is not too different from your neighbor’s. It is important to make sure that the house fits in with the surrounding neighborhood after renovations. The exterior can be kept as simple as possible. However, if you focus on the interior it might surprise prospective buyers.
You shouldn’t try to emulate your taste or style too much in your home
You may not be liked by everyone, so make sure you don’t give up too much of your personal taste. You must have good taste so that the renovations can be accepted by everyone. By doing so, you can get back the cost of renovations through a rental or higher price.
How long you plan on living in the house will affect the cost of renovations.
If you intend to buy an older property for personal use you can spend as much money as you like. It is best to not spend too much money on major renovations if you are going to be living in the house for less than five years. However, if you intend to buy an older property as an investment, it is wise to make the most of the property’s existing features, so long as the property looks good and safe. Consider flooring over carpeting or painting instead of wallpaper. Also, focus on the minor renovations.
The quality and finish of the paintwork
Last but not the least, the paintwork is important as it is the face of the house. As it is most visible, this is the “value adder” for a property. This applies to women who put on makeup to boost their confidence. The reverse can happen: a woman who is not well-made or has bad makeup can make her look awful.