As a property investor, you probably know that return on investment (ROI) is such a critical aspect in any investment. Well, it sure is! You see, in every investment, there is no point in putting in your capital and committing to a long-term scheme if there is no benefit in the end. So, if you are buying a property, especially if it’s a business venture, you must be sure of the potential returns. There is one problem though – given the kind of volatility the property market experiences, you are not always guaranteed of a positive ROI. It is very possible for you to buy a property, only for it to decrease in value after some time, due to economic recession, for instance. So, you have to put in some work to ensure that not only the property will not depreciate, it will also increase in value in both rental income and capital gains!
Now, the question is, how to give a positive boost on the ROI on your investment property? Well, if you are not yet aware that there are a number of ways in doing so, now you do! In fact, here are some of the most effective ways:
Construction of a swimming pool – among all the other methods, this is one the best options that are guaranteed to work. Look, modern-day investors really value any form of luxury, enjoyment, and comfort. When making their purchase, these are the same factors – plus several others – that inform them whether to buy/rent or not. Now, given that a swimming pool offers both luxury and comfort, investing in one will not only increase the property’s worth but will also improve its personal value. There is a reason why properties with a private pool tend to sell with a nicer premium than those without!
Moreover, today – in the age of COVID-19 – many property investors are looking to invest in a villa that has a pool in it. The reason being, they like the idea of their property becoming a one-stop-shop for all their entertainment activities considering the restrictions put in place to control the pandemic. Also, considering the hot temperatures experienced in Thailand almost throughout the year, having a pool in your property will certainly increase its value. Furthermore, when it comes to rentals, you find that properties with swimming pools do yield higher rental rates when compared to those without. And a property without a pool that is in the same neighbourhood as others that have, tends to decrease your home’s worth in the market. What all this means is that you need to have a pool in your property if you are looking to boost its value. Talk to Zenithy pool villas team, they’ve got a solution for you.
New roof – we all know the role roofs play in our lives, and the reason as to why we need to take good care of them. Now, most likely, what’s usually at the top of your mind when caring for your roof are two things: first, to protect your family against harsh weather conditions, and second, to improve the aesthetic appeal. But did you know that there is a third reason why you should consider changing your roof other than these two? See, installing a new and modern roof on your property could raise its value significantly. Whenever a tenant or an investor visits your property, the very first thing they get to see is the roof – if it is in shambles, regardless of how good the property looks on the inside, they will avoid spending money on it. After all, no one wants to spend money – lots of it, for that matter – buying or renting a property, only for them to spend even more money repairing it. But with a new roof, the property will entice potential tenants or investors, and you will certainly get better value for it.
Landscaping – as we mentioned earlier, the exterior appeal of the property plays a significant role in its value estimation. Both the front and the back yards – the way they are landscaped – certainly influence the amount of money you will charge your tenants or the amount you get after you sell it. So, if you are looking to improve your ROI, how about you pay attention to your property’s landscaping, things like the porch, flowers, trees, outside kitchen area, outside furniture as well as exterior lightings. Reason – prospective tenants and investors do place a lot of emphasis on what is in any property’s landscaping.
Choosing the right location for your property – in Thailand, different areas are designated and set to cater to specific market segments. There are several areas in which to build your rental property – it can be holiday hotspots or residential areas in the suburbs or the central business districts. Remember that the location you choose can greatly influence your rental yield, so you need to think things through. Let’s say that you want to invest in the residential and retiree property market, areas such as Bangkok, Pattaya, Phuket, or Chiang Mai should be at the top of your head, considering the fact there are largely seen as excellent locations to own residential properties. This is particularly so if you are targeting long-term foreign residents.
Flooring upgrades – the flooring of your property is the other thing that tenants and investors pay attention to before putting in their money since it is the one thing that they will make the most use of while in the property. Yes, you might be tempted to install the cheapest carpets available in an attempt to minimize costs, but if you are looking to add value to your property, there are more affordable and effective options out there for you – you just need to do your research. Whether it is hardwood, tile, laminate, higher quality carpet, vinyl, or concrete that you go with, always remember, upgrading your flooring with any of them is set to garner you a higher ROI, almost right away. After all, upgrading your flooring means that you will have a sturdier, better looking, more appealing, and functional to just about anyone.
If you are looking to improve your ROI, you really need to consider making some serious changes to your property. Among them, the ones discussed above are guaranteed to leave a positive impression on your prospective tenants/investors. If you are not sure, you can always seek help from qualified professionals. Bottom line, make sure that the changes set your property apart from the rest in the neighbourhood, which will in turn, boost its selling or rental price in the near and long run.