If you have a tenancy finishing at Christmas, it’s an ideal time to give your property a spruce-up.
. It doesn’t have to cost a fortune – depending on its condition, it might cost you as little as a couple of buckets of paint. The most cost-effective ways to give your investment property a makeover are:
- Repainting. Starting from under $1,000, you can repaint your entire property and give it a fresh, clean look. It’s a small change that makes a disproportionately large impact. Look for bright, neutral colours to maximise the sense of space and light.
- Recarpeting. New carpet doesn’t need to cost a fortune and it will improve the look, feel and smell of any property. Blended or solution dyed nylon carpets start from $25 a square metre and last for ages.
- Tweaking your kitchen and bathroom. Affordable changes include new handles and fixtures, a new benchtop or vanity, and fresh tiles – as well as a lick of paint, of course. These can transform a tired-looking property for your next tenants.
Keeping your property well maintained protects its value and helps you achieve the maximum rent. It also attracts quality tenants who will be encouraged to take care of their smart new property. Impression has its own tradies on staff who can help you with minor work, we can source other types of tradespeople and our property managers provide free assessments and advice for refreshing your specific property – give us a call today.
KEEP OR SELL WHEN YOU RETIRE?
Most of us invest in property to help us have a more secure retirement. When you turn 65, what can you do with your property portfolio?
- Sell all your properties when you retire. You take all the profits and put them into an investment fund that allows you to draw down money each month. The ‘four percent rule’ is that you can take out 4% per year to live on, which is $20,000 a year on a $500,000 lump sum. That’s without touching the capital itself, and you’ll get another $20,000 from your superannuation (or about $16,000 if you’re coupled up). And the $500,000 is ready for you spend on travel if you want to.
- Sell some of your properties when you retire. You’d probably want to sell any cashflow negative properties and keep any strongly cashflow positive properties. Also, how easy they are to own will be a big factor. You might like to get rid of the stressful ones, keep the low-maintenance ones. You’ll have some cash in the bank, and some ongoing income that adjusts itself for inflation as the market rents rise. Plus your superannuation, of course.
- Keep all of your properties when you retire. If you’ve managed to put together a strong passive income on a cashflow-positive portfolio, it’s possible your best strategy could be to keep your portfolio ticking over. You might not have a whole load of equity to cash up, but with a regular income that naturally rises over time, your rentals could provide you with the money you need to live off. Plus super for holidays, maybe. You can always sell at a later date.
The best strategy for you will depend on your own portfolio, personal goals and circumstances. Get personalised financial advice from an authorised financial adviser to help you choose your optimum retirement property strategy.