When you have a second apartment, try to earn rental income from it rather than allowing it to sit idle. Rental income will also help you repay your home loan EMIs, and so, will reduce the financial burden on you. To get a good price for your apartment, you must ensure it is in good condition and strikes a note with prospective renters. So, consider renovating your home to enhance its appeal. Use funds from a top-up loan on your existing home loan to fund the renovation. You should be able to repay the additional EMI through the rental income you will receive on completion of the renovation.
Take a look at 4 ways in which you can add value to the apartment when you renovate it.
Study the property to come up feasible plans
Spending time in the apartment will give you ideas on how you can enhance it and increase its value from a renter’s point of view. Here are 3 simple adjustments that you can make.
- You can enclose a balcony to create a home office, study or sunroom. This will add another room to the property and so, boost its value
- Create a utility area in the kitchen or in a balcony. This laundry facility can be a highlight feature for prospective renters
Additional Read: Factors that impact your Home Loan interest rate
- Adding split air conditioner will make the apartment more comfortable, will add to the amenities and will allow you to charge marginally higher rent. Besides, this one-time investment will not cost you much
Stick to a budget
Renovations can be expensive. So, as a thumb rule, you should spend between 5% and 10% of the value of the apartment to make changes. Create a budget and identify the areas that concern you. Then, start by addressing the larger issues and before moving on to smaller tasks.
Talk to agents to understand what renters are looking for
When you are confused about what renovations will be most appreciated by a renter, speak to real estate agents. They will give you a clear idea of what the priorities of a renter are. Some of the suggestions may even be location specific, so keep that in mind.
Get professionals to do the work
Do not underestimate the need to appoint professionals to do the renovation. Hiring professionals may cost more, but it will take less time to finish the job as compared to doing all the tasks yourself. Also, the finish offered by a professional team of workers will enhance the value of your property. Since this isn’t something you would do on a regular basis, it is worth your while to spend on it.
With these handy tips you will be able to make appropriate changes to your apartment to ensure that it fetches a substantial price when you put it on the market.
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