You know the old saying: “Don’t judge a book by its cover.” Many investors place too much emphasis on looking rich rather than becoming rich, and make the mistake of buying properties based on cosmetic appeal instead of their capital growth potential.
Buying a property just because it’s pretty could mean you end up with an under-performing investment.
Our go-to tips for weighing up aesthetic appeal versus potential capital growth include:
Growth before beauty
Just because a property looks impressive or is well maintained does not automatically mean it will perform well in the growth stakes. Growth should be your number one priority at all times. It is always better to select a property with superior growth potential than one which 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.
Ugly ducklings become swans
Remember, you may only have to spend a little to enhance your “ugly duckling” investment. While homes with cosmetic appeal attract a pricey premium, an ugly duckling may cost less. Those savings will usually more than cover cosmetic improvements that can turn your property into a lucrative swan.
Leave it to a pro
You don’t have to get your hands dirty. Many buyers say they don’t want to 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 a professional renovation company to do the work.
Think of the rental ROI
Cosmetic improvements may help boost your rental return. Snapping up the right property in the right location, and then enhancing it could lift your rental return on investment and put you ahead of the game.
Growth drivers matter most!
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 lifestyle attractions, transport arteries or the ocean.
If you’ve got any burning questions about how to snag a quality property investment, call us on 08·9381·7450.
Or, if you’re ready to get started, why not complete our Getting Started form to get the ball rolling.
Or, if you want to learn about different property investment strategies, or learn more about investing in property in Perth, why not read our free Get Ready to Invest in Property eBook.
It takes you through five simple steps to help you understand strategic property investment and how to make it work for you. Whether you’re a first-time investor or re-entering the market, it will help you navigate the sometimes complex world of property investment and associated issues you need to consider.
So if you’re ready to learn some great insights into getting started in property investment, download your free Get Ready to Invest in Property eBook here.