The great, global recession has come and gone, there have been significant ups and downs across all industries, and the world has slowly started getting back to normal. Certain global real estate markets suffered their own share of booms and slumps through recent turbulent times, yet they too are starting to get back on their feet. With this new growth comes the re-emergence of an old trend: renovating apartments for profit and selling them for a return on investment.
All the Renovation
It is highly essential of course, to know what improvements will add the most value to an apartment, so that the largest possible profits can be generated.
• Research It: As in most things, research is fundamental to the process of generating substantial profits from renovating apartments for profit and selling or renting them. Consider its type, its location, and the people most likely to be interested in it, and try to think like a prospective buyer would before you start making any changes.
• Budget It: If you aim to earn double the amount you spend, you must strive to spend only half of what you earn. Never, ever let the budget go out of control. Maintain a buffer for unforeseen circumstances and issues, and focus on the small, inexpensive improvements that add large, significant contributions to the apartment’s value.
• Paint It: If it looks good, it will sell good. Nothing works the charm quite like a cosmetic makeover of an apartment. Paint can be incredibly refreshing to an apartment’s look and its feel, it is inexpensive, and provides an incredible return on investment.
All the Finance
If budgeting is important, then planning finances is extremely crucial to the ‘renovate and sell’ process. As a commercial real estate owner or investor, you need to plan exactly how much you’re willing to spend on purchasing a property and how much you should spend on renovating it. This estimate will include consideration for an estimate of the property’s value once you’re done making improvements to it as well.
When renovating apartments, financing is one way of making sure you do not miss out on an investment worthy apartment, and the subsequent profits it promises to provide after renovation is complete. Such commercial mortgages can be acquired through loans for renovation from various banks and financial institutions.
All the Value
There are a variety of improvements that commercial real estate investors can make to an apartment that add value to the property. As discussed earlier, the first and foremost, on most occasions, is to paint the apartment afresh. Nothing adds to the value of property like its visual appeal does. There are several other things as well that can be done to generate the largest possible profits:
• Electricity and Plumbing: Although these factors do not add value aesthetically, they remain worth an investor’s consideration. Any apartment, before being improved upon to look good, needs to be comfortable and complete with the necessary amenities.
• Woodwork: This is another area that can add considerable value to an apartment. The doors, windows, cabinets etc. need to at least be in a decent, presentable condition.
• Fixtures: Light fittings and bathroom fixtures are small considerations, mostly inexpensive, yet they can provide significant contributions to the value of an apartment. Even door and window handles, or the locks on the doors, can add or take away from the value a prospective client will put on the property.
Renovating apartments for profit in order to sell them for a return has been a popular trend, and continues to be so, as it often provides profits. It is essential however, to make sure that the renovations done serve their purpose of adding value to the property so that profits, not losses, can be made.
