This simple makeover added thousands of dollars more to the value of the property than it cost to renovate.
Many investors place too much emphasis on looking rich rather than becoming rich. They can mistake a good looking property for a good investment, buying based on looks instead of growth potential.
Successful property investors, with multiple properties that grow in value, are not flashy, appearance-conscious people. They look to the bottom line make purchase decisions based on facts rather than feelings.
Buying the right property in the right location is the way to go to grow your wealth, regardless of street appeal.
If you buy a property just because it’s pretty, it could mean you end up with an under-performing investment.
Remember, an ugly duckling property in the right street can be a better prospect to make you wealthy than an attractive property on the wrong street.
Some key factors to consider when weighing up aesthetic appeal versus potential growth include:
- Growth should be your number one priority at all times. Just because a property looks impressive or is well maintained does not automatically mean it will perform well in the growth stakes. It is always better to select a property with superior growth potential than one that simply “looks nice.”
- Be a visionary. Less attractive properties are often overlooked because most people can’t see their potential. This is where clever investors can make money by picking up properties which have great growth prospects, but with a lower price tag. Remember, you can come out on top by spending a little to prettify your “ugly duckling” investment. Those savings will usually more than cover cosmetic improvements that can turn your property into a lucrative swan.
- You don’t have to get your hands dirty. Many buyers say they don’t want, or don’t have the time, to repaint or recarpet their new investment – but you don’t have to do it yourself! When considering buying one of these properties, simply factor in the cost of hiring someone to do the work. Hire qualified professionals to take care of this for you.
- Cosmetic improvements may help boost your rental return. Snapping up the right property in the right location, and then beautifying it can increase your rental return above that of more expensive, already-attractive properties.
- And don’t forget – you can improve the look of a property, but you can’t convert a low-growth property to high-growth one with just a lick of paint. This means staying focused on securing properties with key growth drivers, such as proximity to the city, lifestyle attractions or the ocean.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.
