THE DILEMMA OF REFORMS
In periods of growth in the real estate sector, property owners are beginning to see an opportunity to make their investment profitable. One of the options is to make a specific investment in the property in order to fix a higher price or even, in some cases, to carry out a comprehensive reform.
In the majority of cases, the implementation of this reform leads to an increase in the value of the home. On average, a basic reform involves an increase in the value of the investment by 10% while a comprehensive reform involves between 15% and 17% in the value of the property.
Before making the decision, two factors must be taken into account:
To be able to face the cost of the rehabilitation. It is necessary to assess whether there is the necessary amount to bear the different costs that a reform presupposes. If you do not have it, you should study the best way to obtain the necessary capital through various means of financing.
Make a market study, review what prices have reformed flats and to reform in the same area, study the behavior of prices in relation to the qualities of the reforms and thus calculate the profitability of it, concluding whether it is feasible or not to perform certain types of work.
We are going to make a sweep to know which are the main reforms that suffer the buildings:
1) Cleanliness and order: In the first place, there is the cleanliness and the order of the different rooms and of the building in general. It is the most appreciated element for future tenants. It improves the aesthetics and perception of the house.
2) Natural light and diaphanous spaces: For tenants, diaphanous spaces that provide a large amount of natural light are also very important. In addition to adapting the different spaces of the house to the needs of potential tenants.
3) Storage: It is very important to have storage spaces, a good option can be to have built-in wardrobes, which add a different point to your room.
4) Enclosure of terraces and windows: Enclosure of terraces increases the value of the home by 80%, provided that these do not provide views of the city or damage the overall design of the property. In addition, the rehabilitation of windows brings an acoustic and thermal improvement to the home and a leap in the quality of life.
5) Home automation: This term refers to the automation of the home, appliances, lights and temperature (among others) that can be controlled by apps. It is an aspect valued more and more above all by young customers who appreciate this factor as an improvement in quality of life.
Finally, it is important to mention that the work of Home Staging is vital at the time of making the visits. Having harmonized spaces and environments, order, depersonalization, cleanliness, and sensation of space are indispensable to attract the attention of potential customers.
Thanks to the above, this will generate that better profiles of buyers attract the attention and become potential buyers of the property.
At All4Flat we can help you. Come to our offices and we can advise you on what type of reforms you can make to your property according to these tips. Contact us.