Using interior design to upgrade the value of your investment property

Written by Sapphire Savvy Women Group.

 

 

 

When it comes to your property investment, you’ll likely want to ensure it is maximising its income earning potential and making you as much revenue as possible. There are many ways of ensuring this, but let’s say you have a single occupation home for example.

Whilst a single occupation home is amongst one of the most common investment strategies, it does present some varied limitations. Take the fact that it is only built/let for one household, as you can imagine that means there is only so much income you can make from one family. So how do you ensure your property builds you the type of income that you’re after?

Let’s firstly talk about how important interior design is to the value of your home, studies repeatedly show that “home staging costs 0.5-1.0% and offers an expected price increase of 3.0 per cent” – Movewise. You have a higher chance of selling for and above asking price and more chance of securing a tenant at your asking price.

 

Key takeaways:

 Interior design increases the chance of renting your property out at the price you’ve set

Why you should style your property

Popular design styles to consider

Implement small changes to fit your budget

 

So why should you bother to style and design your home?

There are a few specific pros to styling your home:

-Attracts the right type of tenants: Okay, so let’s unpack this. The ‘right’ tenant doesn’t just mean the one with stable income, whom we can trust will be able to afford and make their rent payments on time. It ALSO means that this tenant, is looking for a nice place to live- typically tenants that have higher standards on their property search will respect your property as they would treat it as their own home. A tenant with a higher range of expectations means they likely have the ability to look after the space as well, after all the more you take pride in your home, the more you want to look after it.

 

-Increases saleability down the line: We mentioned earlier, that styled homes have a “+3 per cent expected return for staging” when trying to sell or rent out your home – Movewise. You may not be looking to sell right away, especially if you want to allow your property to rent and begin to pay off your mortgage. Getting the groundwork in early will help you establish a style for the home, YES you may need to do some refurbishing when the time is right you to sell, but you will have comparatively a lot less to do.

  

 

-Increases the property value: Not to state the obvious, but the right interior design can literally increase the value of your home, even if it’s some simple changes like giving the walls fresh coats of paint, and fitting quality flooring and facilities will take your property from average to an ideal money maker.

 

-Tenants are able to envision themselves in the space: When you have a quality property investment, you want your potential tenant to see themselves living and making a home in your investment. This is the best way to secure the right tenant, styling a home helps tell a story about what the property offers and how the tenant could be living. For example, if you’re trying to attract a young professional couple, you’d want to create spaces that directly correlate with this type of tenant. Ask yourself these questions: Could you style up a room for a potential office space? What areas in the home will be purely dedicated to recreation and relaxation?

 

Some popular interior design styles

There’s LOTS of flexibility when choosing an interior design style, we do know that for single rooms like hotel style accommodations for professionals, a ‘high end boutique’ style is very popular – luckily there is a lot more scope when deciding on interior for single occupant homes.

 

Some very popular design styles include:

 

Modern: Stick to creating clean lines and structure, when painting the walls, choose cohesive colour palettes throughout the space. Consider adding interesting elements like wall panelling to create a mix of modern and classic.

 

Mid – century modern: Adorn the home with wooden furniture, consider fitting a mid-century modern shelving system or tv stand. Use organic shapes in combination with bright airy wall colours. Add texture through use of rugs, throws and ottomans.

 

Minimalist: Keep things very simple, straight lines and minimal ‘fluff’. Grey couches are a popular choice for minimalist’s as it goes with lots of different colours. Stick to simple window treatments like linen, white, sheer curtains/blinds.

 

STYLE WATCH: Keep an eye out for this style as it’s becoming increasingly popular

Maximalism. Pinterest has been going barmy over maximalist style, think lots of texture, patterns, pops of colour.

 

Designed by Kelly Wearstler. Photo credit: The Ingalls.

 

What simple things can you do to better style your property, whilst sticking to a budget?

-New paint job

-Choose attractive furnishings – if you don’t have a large budget, you can consider furniture rentals, there are lots of companies offering this service at an affordable price

-Use the rule of three – arranging objects in odd numbers, creates a more appealing and effective visual impact. You can increase the number, but 3 items seem to be the sweet spot.

 

Remember to leave enough room for tenants to make your property a home of their own, you should style the space appropriately without trying to dictate how people should interact with the space.

At this point you should know that styling your property is a worth while cost in order to reap the maximum benefits of your investment property. What is your favourite interior design style? If you’re struggling with managing multiple properties perhaps you can stick to one style and make this universal across your projects.

The Finance Talk – blog, posts weekly on Monday’s, where you can get the latest exclusives on what’s occurring in the housing market. As professional property investors and Educators, we make it our job to know the property business -so check on in and we have you covered.

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