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Investing in BMV properties (below market value) is a fantastic way to maximise your return on investment. However, it can be easy to get carried away and want to fully renovate the whole house, eating into your return. So, we’re here with 4 of the main things you can do to boost the value of your below market value property, whether you’re looking to rent it out, or sell it on.
1. Complete essential repairs and maintenance
The first thing you’ll need to do is to complete any essential repairs and maintenance. If the property has issues that will impact the tenant in any way or will be picked up in future surveys, it’s going to seriously impact the potential of the property. So, before any other work begins, prioritise fixing any electrical issues, leaks, rising damp and central heating issues, then the cosmetic work can begin.
2. Create a neutral interior
When looking to rent a property or purchase it, people favour a neutral interior. They want to envision putting their own stamp on the property, so if you push your own interior style too heavily throughout the property, such as bold colours or design choices, then it may be off putting for people.
To widen your horizons, try to create a neutral interior, with clean and fresh walls, along with wooden floors that are easy to maintain. If the property has original features, try to maintain them as this will bring character. However, for the most part, keep things more simple. If you are planning on renting out the property, warm the space up with furniture and lighting.
3. Refresh the bathroom
If you have a dated bathroom in the property, then it can change people’s perception completely. Plus, you can renovate a bathroom for a relatively low cost if you choose PVC panels over tiling, so it’s absolutely worth doing. Neutral bathrooms are calming and timeless, so choose this style over something very dark or bright. Along with the kitchen, the bathroom is something people see as a major expense to resolve even if it may not be, so get this right and you’ll maximise the potential of the property.
4. Create an open plan living and dining space
Lastly, most people are now looking for an open plan living and dining space rather than separate rooms. Opening this up will create such a large, bright space that is ideal for entertaining or family life, so something as simple as knocking through a wall can make a huge difference in terms of the value of the property. Depending on your budget, you could also look to add sliding doors onto the back of the property to open it out even more into the garden. Properties with this kind of setup are favoured by renters and buyers alike, so although it is a structural change, it can be an extremely valuable one. Choosing a more affordable area to invest in, such as property investments in Leeds compared to London or the south, will free up more budget to make these renovations.