I was recently browsing the Australian Property Investor Magazine website and was heartened to find an article listing the Top 12 tips to Getting a Great Property Valuation.  Especially when I read that the Number 1 tip was Home Presentation.  It comfirms what I consistently preach to my clients (both home owners and property investors) that a combination of Home Staging and cosmetic Renovation are not only great tools to add value to a home before selling but  you can also squeeze extra equity out of your current home or investment property prior to refinancing.

Please find below the part of the API article written by  Michaela Ryan

It’s quite frustrating to have your home loan application knocked back or the loan amount reduced because the valuation came in too low. Here’s 12 ways to get a good one.

Investors periodically have their properties revalued in order to finance additional investments. For example, just say your property’s value has gone up by $50,000. Most lenders will let you borrow around 80 per cent of that value ($40,000) which you can use as a deposit for another property purchase. In order to work out exactly how much they’ll lend you, lenders will often send a property valuer around. So we’ve asked a couple of industry experts for the insider’s word on property valuations. How can investors get the highest figure possible?

Phillip Grahame from Herron Todd White says, “The main things in a valuation are the size and functionality of the dwelling and the size and location of the land.” So obviously the chances of a favourable valuation mainly come down to your choice of property in the first place. And of course, it also depends on what the property market in general is doing at the time. However, according to our experts, there are a number of things you can do to make sure you pull off the best valuation possible on the day.

1. Presentation

Grahame says presentation is the most important thing to take care of when you have an upcoming valuation.

“(Make sure) the gardens are looking nice and the clutter throughout the house is cleaned up and all that sort of thing. Because first impressions, even with property valuers, do count,” he says. “If it’s freshly painted and really neat and tidy and presents well, as it would to a buyer, then we’re going to be more positive on that particular property.”

Mark Ruttner from First Valuation Group agrees, “The owner should provide a property in a state of repair similar to an open for inspection. “There’s nothing worse than rolling up to value a house and all the clothes for the last two weeks are on the bedroom floor; the toilet seat is up; dishes for the last week are still sitting in the sink.” Ruttner suggests mowing the lawn and trimming the edges. He also says any external painting should be fully completed, as first impressions can be significantly dampened by incomplete paintwork.

to read the other 11 Tips    Click Here

Landlords often fail to recognise that owning a property is like a business and to get the best results they need to treat it like a business. Most investors know that the performance of real estate as a financial asset is outstanding over the long term, however a lot of property investors, like homeowners, have unrealised equity and potential extra income hidden in their rental properties.  The majority of landlords buy their property, install the tenants as quickly as possible and  leave the property to sit there for years untouched, just sitting back waiting for capital growth to eventually kick in.  They only carry out minor maintenance jobs when the tenant or property manager alerts them about a problem and give no thought at all to regular maintenance.  In fact it is very rare for a landlord to have a planned upgrade and maintenance program set up for their investment. Naturally over time the investment property’s general condition will deteriorate.

I have also heard this story numerous times from landlords – “I have a great tenant who always pays their rent on time and never causes me any problems so I reward them by not raising the rent”.  It is not unusual for a landlord of a long held property, to be willingly receiving 30-40% below market rental!  And yet owning a property investment is supposed to be a wealth creation strategy.

Tenants are your greatest asset

“Properties are just bricks and mortar without bank accounts. tenant’s who are living breathing humans, are the ones with the cheque books”

Have you ever considered that tenant’s are a landlord’s greatest asset because they are paying off your investment for you.  Tenants are just like any other homeowner in that they also want to live in an appealing, well cared for property that gives them a certain standard of lifestyle.  If you can improve the amenity of your rental property, you will attract a higher quality tenant who will appreciate the “extras” and be willing to pay a premium rent to live in your beautiful property.

Making a commitment to adding value to an investment property by investing in a cosmetic makeover, will not only give you instant equity, it will increase your ability to charge a higher rent. If you want to run your property investing like a business instead of a hobby then here is a recap of the benefits

1. Gives you instant equity – don’t wait for the 7 – 10 year property cycle to give you capital growth
2. Increase rental yield
3. Attract a better quality tenant
4. Maximise tax deductions

If Property investors want to ensure their asset is performing at its peak and bringing in the biggest amount of income but don’t want the hassle of organising a makeover themselves, they should consider using the services of a home makeover specialist.

Houses to Impress provides project management and interior and exterior design advice to property investors wanting to transform the appearance of their investment property, add instant equity and increase rental yield. Using both our property renovation and professional home staging expertise, we  show landlords  how to transform their investment property for the most contemporary look and the largest return.

Kate and I were  interviewed by Angelo Meno of Adelaide Property Finders, an Adelaide based Buyer’s Agency about the benefits of adding value to an investment property.

Click here to go view the 30 minute video on Renovation and Home Staging.

For further information about how we can help you to improve your investment property please call us for a FREE 15 minute consult.

Charyn and Kate Youngson

Authors | Professional Home Stagers | Speakers