When you’re a property developer it can sometimes feel like you’re entirely at the mercy of the market. If property prices and rents fall then you just have to cop it on the chin and hope that things get better sooner rather than later, right?
While it’s true that the market is always going to have a big impact upon the returns generated by your property portfolio, there are actually quite a few things you can do to help ensure that your returns are as healthy as possible.
Whether you’re looking to maximise the rental income you generate or increase a property price ahead of a sale, the following tips will help to ensure that you’re getting the best possible return from your property portfolio. It’s all about taking charge and being as proactive as possible.
Update & Renovate
This is one of the most obvious and effective ways of boosting your returns, but the trick is knowing how to update in a cost-effective way which will have the most impact.
Giving the interior a fresh coat of paint or renovating the kitchen and bathroom by updating the fixtures and fittings doesn’t have to be a hugely expensive exercise (if done right), but it can have a huge impact on your returns.
Install Additional Features
This one is more for the rental market. “Value-add” features like an alarm system and reverse cycle air conditioner can help to maximise your rental income by making your properties much more attractive (and thus able to command a higher rental price).
Be Pet Friendly
Again, this is more specific to the rental market. Because the majority of landlords don’t allow their tenants to own pets, permitting animals on your property can allow you to attract premium rents from people that simply can’t fathom living without their ‘fur babies’.
Get The Pricing Right
Whether it’s a sale or rental price, it’s always tempting to ask for that little bit extra. However, overpriced homes are much less likely to sell or be rented, so chances are it’ll end up costing you more if your property sits unsold/vacant for an extended period of time.
Do your research, get to know the market, assess your property and then price it accordingly.
Realise Your Property’s Development Potential
Changes to planning rules and regulations have changed a lot in recent years, so property development that once seemed unfeasible might now actually be an attractive option.
Due to these changes (especially in R Codes), it might now be possible to subdivide and build additional dwellings or even ancillary accommodation. This can help to increase your rental income and boost the value of the property. You might even be able to sell one subdivided dwelling and keep the original home for rental income. At the end of the day, it’s up to you to explore all the possibilities and work out what’s going to generate the best return.
Perhaps the best thing for you is to ensure you maximise the returns from your property portfolio by building new dwellings of exceptional value and quality. As Perth’s leading property development building company, at Developments By Impressions we have the skills and experience necessary to do just that. Get in touch today to find out more.