Boost The Value Of Your Luxury Real Estate Investment Property With These Steps
/As you build your wealth, you will need to simultaneously consider your exit strategies. An exit strategy is where you “cash in” on your investments. If you have real estate in your investment portfolio, these exit strategies can include selling your property or renting it to long-term renters. Here are a few ideas on how to boost the value of your luxury real estate investment property to make it more appealing to an affluent buyer or renter.
Hire a professional staging company.
It is common practice to stage a home, but when you’re selling a luxury property this is an absolute must. Affluent buyers wish to experience and visualize what it would be like to rent or own your property, so give them the ability to picture themselves in the home before buying by hiring a quality staging company. As you work with the staging company, consider who your potential buyer is and what she likes. Does she appreciate modern decor? Is she an art aficionado? Does she like luxury cars? The possibilities of how to stage your home are limitless, and your prospective buyers will definitely remember the thoughtful details you put into their viewing experience.
Make it energy efficient.
Depending on the area of the country, energy conservation features can dramatically increase the value of the home. Additionally, energy-efficient mortgages (EEMs) may be available to borrowers, which will decrease their interest rate and increase your ability to sell the property.
Some energy-efficient upgrades to consider include:
Double-paned windows
Enhanced attic insulation
LED lighting and efficient appliances
Solar panels on the roof
Be sure to schedule an assessment with a certified energy auditor or your utility company to determine where your home is wasting energy and which upgrades will increase the value of your investment property.
Make your property a smart home.
Smart homes are becoming more and more mainstream, and if you have a luxury investment property it is definitely an upgrade to consider to boost its value. These safe and smart devices include thermostats, fire detectors, carbon monoxide detectors, security cameras, door locks, and lighting.
And unlike kitchen renovations or replacing the roof, these additions can be less than $1,000 to install.
The kitchen still reigns queen.
We all know everyone loves a gorgeous kitchen in their home. Beyond that, it is one of the main considerations of buyers or long-time renters before committing to a location. While a full renovation is great, you can do a lot to refresh the kitchen area with a smaller investment. Adding a new suite of appliances, a new countertop, new flooring, and/or a fresh coat of paint, can go a long way. Overall, if the upgrade breathes fresh air into the kitchen with a brightened, coordinated look, that will be enough to boost the value of your property.
Expand the living space.
One of the appeals of owning or renting a luxury real estate property is the ability to hang out at home and feel like you’re on vacation. By expanding the living space in your investment property, you will drive up the appeal for potential buyers or long-term renters. This can be done by adding a deck or patio, with room for seating. A hot tub, a built-in or freestanding grill, a luxurious shed with a sauna or office space, are other great ways to create a vacation feel on the property.
Be wary of adding a pool to the property or a lush landscape. A pool and landscape require a lot of upkeep and today’s buyer is not interested in additional maintenance work. Also, both of these options are not environmentally friendly which is a big consideration for today’s affluent market. Instead of a pool or overdone landscape, opt for the aforementioned hot tube or an outdoor fire pit.
Think about the needs of Boomers.
By 2040, reports suggest that there will be almost 80 million seniors making up 21 percent of the population. Many homes on the market are not designed to be safe for this group. There are steep staircases, narrow doorways not designed for walkers, slippery bathrooms, and so on. As you upgrade your investment property, think ahead to the needs of seniors as they may be your potential buyer.
You may wish to consider a walk-in shower that could be wheelchair accessible and a floor plan where the master bedroom is on the ground floor.
Keep it simple and stress-free.
Stress-free living is a commonly used buzzword to describe a luxury property on the market. Upgrade to stain-prone stone countertops while eliminating grime-collecting ornate cabinets and dust-catching wall-to-wall carpet. The latter two used to be symbols of luxury, but today’s affluent buyers will see it as an unnecessary hassle.
In addition to these cosmetic upgrades, be sure to upgrade the mechanical systems. These include the heating system, plumbing, and electricity. Also, hardwood floors and a new roof are quality upgrades.
Beyond a home’s cosmetic finishes, it’s important to keep the major mechanical systems in working order. Many first-time buyers will have used up much of their savings on the down payment, so they want to know that the heating system, plumbing, and electricity have been recently updated.
Disclaimer: the content presented in this article is for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.
