Property investors need to find the best deals in the market. If you are a loyal customer or friend of the developer, buying an investment property can save you money. Otherwise, it could end up being very costly. Sub-sale property can be dangerous because there may be more problems than you can fix.
You can still buy an old property if you believe it will appreciate in the future. However, you will need to pay more for repairs and other costs.
Minor defects that are easily repaired, such as cracks in walls, wiring, plumbing, electrical, or paint, can be fixed. You should also be aware of other issues such as termites, white ants, and termites. These problems should be addressed immediately to avoid worsening.
A second-hand property is more expensive than a new one. Properties older than 10 years usually require major repairs. When buying an older property to invest in, you should be ready to spend your own money on inspections and repairs.
Renovation costs should not exceed 40% of the property’s value.
When renovation costs exceed 50% of the property’s value, it is time to give up on the property. You need to evaluate your financial situation and determine how long you can afford the renovations.
Renovations should be both practical and functional.
You will need to fix the major areas such as the living and dining rooms, kitchen, bathroom, and bedrooms. It is recommended to also change the plumbing and electrical wiring. Prospective buyers may not appreciate the idea of spending money on converting on of your living space into a larger car porch. You can do whatever you want with the property if you are buying it as a personal investment.
The neighborhood must be satisfied with the amount of renovation money.
A property with a market value of RM 500k is a good investment. It’s a reasonable price. Make sure that there are no significant differences between your neighborhood and the one you live in. If the house is not in the right place for the neighborhood, prospective buyers won’t appreciate the money you spent on renovations. It is possible to renovate the exterior of the house as quickly as possible, and then focus on the interior renovations. This may surprise potential buyers.
Do not follow your style or taste too closely in the home
Some people may not like your style. Don’t let your personal style or taste be the only thing in the home. Renovations should be in good taste and can be accepted by as many people as possible. You will be able to get the renovation cost back by renting or buying a property at a higher rate.
Costs of renovations depend on how long you intend to stay in your house.
If you are looking to purchase an old property for your own personal use, then you can spend as much as possible, as long you love it. If you plan to live in the house for less than five years, it’s a good idea to avoid major renovations. If you are looking to purchase an old property to invest in, it is best to keep the renovations as minimal as possible. You can choose to have flooring or paint instead of carpeting, and you should also focus on minor renovations.
The quality of the paintwork
The paintwork is the “face” or “makeup of the house.” It is the property’s most visible “value-adder”. This is also true for women who love to use makeup to boost their confidence. A woman who has poor or heavy makeup can make her look horrible.