Put Your Money Where It’s Smart

Put Your Money Where It’s Smart

If you own an investment property, you probably have a laundry list of things that you want to do to make it more profitable before you sell it or before your next renter. The problem we all run into, however, is a persistent need to balance current expenses with our likely returns. While we may want to turn every shack into a mansion, it’s not always feasible, and a mansion may not be the best investment depending on where your property is located. The next question that inevitably arises is, what projects should I focus on? While it’s easy to think that large, enticing features such as a pool, garage, or new appliances make for the greatest increases in gross profit, they often don’t. There are many other smaller or perhaps less obvious investment improvements that will yield a higher net return on investment. 

To get you started thinking about what you can do to increase the value and salability of your property, here are a few ideas on investment projects. While reading, it is important to keep in mind that every property is different and you should choose options that are appropriate to your unique property and your investment budget. Oftentimes, the assistance of special contracting firms, such as Pinestone Homes, which specializes in property investment remodeling, is a great way to take the guess work out picking a suite of investment projects.

Open a Brand New Door

 One of the best investments is a simple improvement of installing a new front door. New doors improve the curb appeal of your property investment with the added improvement of increasing the energy efficiency of the building by reducing drafts under the door. For instance, installing a new steel front door can yield long-term returns of 98 percent on average according to a report by Houselogic. At an average of $1,230 per install, installing a front door is also the lowest total investment project. Though a seemingly small improvement, new front doors provide the biggest bang for your buck on your property investment. 

The new door rule also applies to garage doors. At an average of only $1,600 per install and with an average return of 80 percent, garage doors are a great way to freshen up the exterior of your investment property. Though not as high as front doors, garage doors are nonetheless a great choice for investment upgrades. 

Freshen Up the Exterior 

To go with that new front door, improving the exterior of your property greatly increases its curb appeal. Depending on the material of your home, the ROI for exterior improvements can range between 75 and 90 percent. Projects to consider when freshening up the exterior include new siding or stucco, manufactured stone facades, or (my personal favorite) concrete resurfacing, which can give driveways, walkways and patios a brand new look, color, and pattern without the cost, effort and mess associated with pouring a new slab. 

Give the Kitchen a Face Lift

A coat of paint goes a long way towards remaking a property. Nowhere is that more true than in the kitchen, which is the most viewed room by home buyers and renters (along with master bedrooms and living rooms). You don’t have to completely remodel a kitchen to make it look and feel like new. “Freshening up” a kitchen with new drawer faces, doors, fittings, and paint goes a long way towards giving the room a brand new feel without the brand new price tag. Minor remodels, in the range of $20,000, yield better returns than large remodels. According to Houselogic, minor remodels averaged an 81 percent return, even through the recession! This average beats out large kitchen remodels every single year. So when it comes to kitchens, small budgets, applied carefully, can yield surprisingly large returns. 

New Windows

In keeping with the theme of “looks matter,” new windows are a great way to improve the curb appeal of your property, make the interior feel less dingy and dark, and improve the efficiency of the building, all of which are marketable features for sale or rent. In fact, over the last 13 years, the long term ROI on windows averaged over 78 percent.

Deciding on how to appropriately spend your precious investment funds is an important decision. These are just a few ideas to consider, but for your unique property, working with Pinestone Homes and their combined 50 years of experience, is a fantastic way to ensure that you are making the right investment choice for your property. 

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