I'm looking at getting an IP, and I was wondering what might be effective methods in increasing rent? Since I intend on keeping it as a rental property for at least the next 7 years. I don't want to make any upgrades which won't eventually pay itself off. It's more than likely that in 8-10 years time when I decide to sell it, the buying market will only be interested in knocking the existing dwelling down and developing their own. (It's already currently advertised on the market as a potential redevelopment! I've just bought it mainly for the land)
It's an absol waterfront property (albiet probably the worst/cheapest type cause it's on a river), but will it be worthwhile adding a small jetty to it? Local council and Dept of Lands is currently still accepting applications for small jetties (They call them Landing Platforms). Besides increasing capital value is it also worthwhile for the rent? The agent's estimated rent is 230pw
The house itself isn't in the best nick, it's about 30 years old and relatively small (2 bedroom, 1 bathroom). The selling agent suggested that I redo the front and rear patio's as the wood has been rotten to the core. He also suggested repainting the same colour throughout just the interior of the house. It already has a car port and A/C, the kitchen/bathroom is a bit old but OK.
There is a rear room that was built without council approval - it's uninhabitable, i'm thinking of just leaving that alone and not touching it. If i'm asked to remove it, then so be it?
However he noted that although these minor upgrades will improve the quality of my tenants, they won't necessarily allow me to increase the rent? So I was wondering if it's even worth while doing these if rent won't increase. The patio's could patched up by just replacing the rotten beams and that would cost a lot less.
Also - what other cheap upgrades are there available to increase rent? Baring in mind that I have a few years with it to make the upgrades pay themselves off.
I also figured that if I were to spend any money on upgrades, I might as well do it now, instead of 4 years from now, in order to make the most of the upgrades i'll make to the property.
Last but not least... do I have to get the work done while tenants are in, or inbetween old and new tenants, in order for the work to be tax deductible? I was told that if I carry out the work prior to getting my first tenant in that the work isn't tax deductible.
Cheers!
It's an absol waterfront property (albiet probably the worst/cheapest type cause it's on a river), but will it be worthwhile adding a small jetty to it? Local council and Dept of Lands is currently still accepting applications for small jetties (They call them Landing Platforms). Besides increasing capital value is it also worthwhile for the rent? The agent's estimated rent is 230pw
The house itself isn't in the best nick, it's about 30 years old and relatively small (2 bedroom, 1 bathroom). The selling agent suggested that I redo the front and rear patio's as the wood has been rotten to the core. He also suggested repainting the same colour throughout just the interior of the house. It already has a car port and A/C, the kitchen/bathroom is a bit old but OK.
There is a rear room that was built without council approval - it's uninhabitable, i'm thinking of just leaving that alone and not touching it. If i'm asked to remove it, then so be it?
However he noted that although these minor upgrades will improve the quality of my tenants, they won't necessarily allow me to increase the rent? So I was wondering if it's even worth while doing these if rent won't increase. The patio's could patched up by just replacing the rotten beams and that would cost a lot less.
Also - what other cheap upgrades are there available to increase rent? Baring in mind that I have a few years with it to make the upgrades pay themselves off.
I also figured that if I were to spend any money on upgrades, I might as well do it now, instead of 4 years from now, in order to make the most of the upgrades i'll make to the property.
Last but not least... do I have to get the work done while tenants are in, or inbetween old and new tenants, in order for the work to be tax deductible? I was told that if I carry out the work prior to getting my first tenant in that the work isn't tax deductible.
Cheers!
