Owning a home is quite an amazing thing. Not only is it a major capital asset but it is also one’s personal dwelling, a place where you can leave your mark. Individuals who have invested in a property, especially a house, have ways and means of consistently improving it, creating and boosting the property’s value.
However, what can boost property value? TheRedPin.com looks at the Top 5 things that home buyers should do to add value to their home, especially when considering creating rental income and selling the property in the near future. This list is in no particular order.
1. Create a Rental Suite
A rental property is one that will benefit not only the current home owner, but future owners of the property as well. Having a rental property allows a home buyer to generate some property income to use against the mortgage payments. This way, they are paying a fraction of their mortgage while still living in their own home. A rental suite will add considerable amount of value to a property, sometimes generating 120-150% of the amount of dollars added to the value of the home. Its not a cheap improvement, but one that has both short-term and long-term value.
2. Finishing the Basement
Finishing a basement is pretty much a fraction of the work of creating a rental suite. New home buyers, especially first time home buyers, wish for the most bang for their buck and having a finished basement not only provides more livable square footage, but also greater potential for creating a family or creating an in-home office down the road. Finishing a basement is a crucial improvement to a home that should be considered as soon as possible and financially feasible. Improvements could include adding another bedroom, creating a man cave, adding a washroom, creating a second living space, home office space, laundry room, etc.
3. Kitchen Re-modelling
If there is one place you definitely want to put some dollars towards, its the kitchen. The kitchen is one of the most used spaces within a home, with families spending the majority of their time within that space. Whether its hosting a party or serving breakfast before work, the kitchen is the go to place for that. If done right, a kitchen can provide close to 100% return on investment, which is pretty great. Improvements can include upgrading kitchen counter tops, adding an island, new cabinetry, back splash and paint, upgrading kitchen fixtures such as the sink and exhaust system, etc.
4. Curb Appeal
A potential home buyer must first walk through the door to even consider a property. If a property’s curb appeal isn’t up to expectations, a potential sale could be lost. They say that a property’s first impression can add 5-10% to the value of the home, which is a significant amount of money. Curb Appeal can be taken to another level with a little paint, some landscaping, fixing up the drive way and simply cleaning up the space. Not only will the neighbours appreciate seeing a beautiful home on the block but it will make the property much easier to sell.
A bathroom in a home is a pretty important space, especially if there are very few bathrooms in the house. Adding a bathroom to a level in your home, to a master suite or a powder room to a living space can add significant value to one’s home. Also, re-doing and updating a bathroom to a modern feel and look will attract many young buyers, especially first time home buyers, who want modern fixtures.