This article about raising the value of your strata investment has been provided by Kelly Borell, Tower Body Corporate.
You have invested in property, so you’re naturally going to want to maximise its value. There are a number of things you can do yourself, including renovations, provided your strategies meet strata by-laws.
Building Managers and Bodies Corporate also understand the value of maintaining common areas including across a range of ‘assets’, including gardens, signage, lighting and shared facilities like the gym, pool, lifts, security systems and air conditioning.
Here are a few ways you can add value to an investment property so that it retains its contemporary appeal, and remains somewhere where people will continue to want to reside and invest
Things You Can Do
One way to add value is to undertake your own renovations. The Body Corporate and Management Act restricts some of the changes or improvements owners can make, and legislation and by-laws also differ between states and territories.
Generally speaking, any cosmetic changes within a dwelling’s interior walls won’t need approval, however minor and major renovations may require some if not complete approval from the Body Corporate. Your best option is to seek advice from your Building Manager.
Probably one of the best ways to add value to an investment property is to look at renovating ‘individual property’ (which you own). These include things like cosmetic changes to paint, wallpaper, kitchen joinery, major appliances, door handles, light fittings and benchtops. You’ll be surprised at how fresh and contemporary your investment property can look with even a few aesthetic updates!
Updating flooring with carpets can also increase the value of a strata investment, and it doesn’t usually require approval. However, if you choose materials like timber and tiles you will need to include acoustic soundproofing that meets Australian Standards to reduce possible noise transference to other apartments.
Kitchen and Bathroom
This is where things can become a little tricky when it comes to the by-laws. You have free reign on kitchen cabinets and bathroom vanities, which can make a substantial difference to your property’s value. However, with anything that may cause a leak (like tiling or anything that requires changing the location of pipes), you’ll need prior approval and will also need to ensure everything is professionally waterproofed.
With structural changes things can become a little tricky when it comes to the by-laws, too. You have free reign on kitchen cabinets and bathroom vanities, which can make a substantial difference to your property’s value. However, with anything that may cause a leak (like tiling or anything that requires changing the location of pipes), you’ll need prior approval and will also need to ensure everything is professionally waterproofed.
Things You and Your Neighbours Can Do
Improving the quality of space in common areas can also raise the value of a strata investment. And yes, there will be costs involved, however, these can be decreased if consensus is obtained with other owners or occupants, and/or the Body Corporate agree to pay for improvements.
Security is a vital aspect of any strata property, and well-functioning security systems, entryways and even letterboxes can immediately add to the demand and value of your investment. It’s also worth asking your Body Corporate to investigate new technologies like smart locks, sensor lighting and security cameras.
Parking is always a dilemma, particularly around inner-city dwellings, not least because of the cost involved. If you don’t already own a car park within the complex, investigate whether the Body Corporate can either add more parking spots in the building or you can purchase a spot from another apartment owner.
A fresh coat of paint to both interiors and exterior common areas can reinvigorate a strata property and transform it from tired and dated to bright and fresh. Updating flooring and fixtures, freshening up landscaping with contemporary greenery, and rejuvenating the pool area with new decking and furniture can also go a long way to achieving maximum ROI for the money that’s spent. On both the upgrades and your investment!
Have a question about raising the value of your strata investment or something to add to the article? Leave a comment below.
This post appears in Strata News #319
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
This article first appeared on the Tower Body Corporate’s website.
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