Real estate investments are an excellent long term strategy for growing your money. But if you want to maximize your returns, it’s important that you continually invest in upgrading the property. It’s down to you to keep up with all of the general maintenance and decorating, but what about the big renovations?
Not many real estate investors consider building extensions on existing properties. They will either invest in another property or sell their investment if it no longer meets their needs. However, there are actually a lot of great benefits to extending your investment property, so you should seriously consider it. Here’s how it could benefit you in the long run.
You Can Charge a Higher Rent
One of the biggest appeals of buying an investment property is that you can make a profit from your tenants. But if your current property doesn’t provide enough space for them, then they may leave and go elsewhere. This will seriously affect your bottom line because you will have to spend time finding new tenants and negotiating with the previous ones. Smaller properties are harder to rent out and, naturally, you won’t be able to charge as much in rent. But if you add more living space by building an extension, you open yourself up to more tenants, especially families (who tend to be more reliable) and you can charge more in rent.
It Adds Value to the Property
Another great thing about building extensions is that it adds value to the entire property. The reason real estate investments are so great is that you get passive income in the short term while also boosting the value of the investment in the long term. If you hire a professional custom home builder to make some additions, you will increase the value of the property even further. That means much bigger profits for you if you decide to sell up in the future.
New Additions Are More Eco-Friendly
It’s always best to build in the greenest way possible. Not only does it save money on energy bills, but it also makes the property more attractive to tenants and potential buyers. When people are looking for ways to reduce their carbon emissions, they will prefer a house with energy efficient extensions. So, instead of buying another property that is unlikely to be eco-friendly, why not add to your existing one and ensure that it is more sustainable?
You Can Retain a Good Location
What if your investment property is in a prime location but the house itself isn’t in great shape or lacks space? If you want the best of both worlds, you should add an extension to the property. Location is the most important thing when investing in real estate, so you don’t want to give it up. An extension will give you the property that you want in the amazing location that you already have.
Real estate investors often think that extensions are too expensive and time consuming but that isn’t the case. They benefit you in a lot of ways and help you increase your profits a lot, so you should consider adding to your own investment property.