Work that works for you: Real Estate Renovations with High Return on Investment
September is here! Soon, we’ll be greeted with a vibrant landscape as the leaves change colours. Just try not to be blown away by the cool, blustery winds as they scatter the leaves!
Before the start of Autumn, though, we’ll celebrate Labour Day in both the US and Canada on September 6th.. This holiday goes all the way back to 1894 and was the culmination of labourers’ effort in the Victorian area. The workers struggled with awful, debilitating working conditions. They held rallies to secure fair wages, reduced hours, and livable working conditions. Thankfully, we are far better off for all of their labor. Their work is finished, but as real estate investors, ours is just beginning.
For the month of September, in honour of Labor day, I’d like to go over real estate renovations that tend to yield high results:
Minor Renovations with a Big Impact
The first thing you can do to add instant appeal to a property is to repaint the walls and ceilings. Chipped, peeling paint and stains on walls and ceilings can make an otherwise beautiful rental appear run-down and neglected.
Another money-saving renovation entails refinishing the cabinets. Best of all, you don’t need to gut the entire kitchen to make that happen. Sinks and hardware can be replaced if needed. Consider installing granite counters – they add quite a bit of visual appeal for the buyer and the cost of installation has dropped over the years.
Simple renovations should be done in the bathroom as well if need be, like new paint and fixtures. If you can’t get stains off certain surfaces, try refinishing them. You can replace them if neither of those options work.
Finally, remember that first impressions matter, too. Set properties up for success by polishing the exterior – replace window caulk, install new fixtures, paint the front door, repair and paint fences and even plant flowers around the building. All these steps can go a long way in making someone want to call your property home.
Pricier Renovations that Pay Off Over Time
Attic insulation is huge in terms of energy savings – and money put back into your pocket. The average cost of fiberglass attic insulation is $1,343 and the average resale is $1,446. How’s that for having your money work for you? This is advantageous for those who rent property as well, since heating and electric costs are minimized. Steel doors are another beneficial energy-saving investment worthy of looking into!
Stone veneer siding has grown in popularity over the decade and can add a great deal of curb appeal. Manufactured stone is a combination of aggregates, Portland cement, and iron oxides that are baked in molds, giving them the appearance of natural stone. The siding is normally applied to the bottom third of the house and around the main entrance.
Garage door replacement is another fantastic remodel to consider. Look for one that comes with a lifetime guarantee. The average cost to replace a set of garage doors is $3,695. At resale, $3,491 should be recouped – not bad in terms of cost recovery.
One More Thing
It’s exciting when the hard work put into home renovation pays off – but remember that not every penny you put into a property will grant the same reward for your labour. Costly repairs, like fixing broken pipes, come up unexpectedly. These repairs are important and so necessary. Sometimes the best reward for a day of hard work is knowing it was a job well done!
Happy Labour day, and enjoy the start of Autumn!
QUOTE OF THE MONTH
A LAUGH OR TWO FOR GOOD MEASURE
HELPFUL LIFE HACK #1
HELPFUL LIFE HACK #2
WHY INVEST IN REAL ESTATE?
Depreciation is the amount of the “cost” of an asset that is allowed to be taken as a deduction each year on a tax return. If you are wondering why I have put the word “cost” in quotations, it is because what is included in the cost number used for depreciation purposes is not necessarily the amount paid for the asset (that would be too easy!).
About Caroline Anderson
investwithcaroline.com has been actively involved in the Ontario area real estate market investing for a number of years. Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Caroline offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Caroline.