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5 Smart Tips to Renovate Your House and Make it More Expensive

If you are trying to sell a house and make the most of it, you better make sure to turn your property into a super-attractive home. Let us be straight about it and tell you that it’s not an easy job – at least not in most cases – but it definitely pays off to renovate your house and make it more expensive.

You’ve probably brainstormed hundreds of possibilities, but do you know the most productive house repair tricks? If you don’t know where to start, check out five smart tips to enhance your real estate and sell it for the maximum price possible.

1. Take Care of Street Appeal

Humans are visual beings who judge other people and things almost instantly. According to reports, it takes a person only seven seconds to form the first impression. In other words, your house may have only a few seconds to impress potential buyers.

How can you help prospects fall in love with your property? The answer lies in street appeal. You can improve it using many different tricks, with the most popular being:

Mowing the lawn to make clear yard lines
Cutting the trees to make them look neat and clean
Replacing lanterns and other outdoor lights
Repainting the front fence

2. Free Up Some Room

Do you know what really impresses house buyers? It is a place with enough room to add personal stuff and make it feel like home. This is exactly why we recommend freeing up some space before the next prospect pays you a visit.

You can do it by removing personal things from the living room, kitchen, and bedrooms. Take out your family photos, souvenirs, and all other items that might interfere with the visitor’s experience. The bottom line is that you need to depersonalize the property and let your guests imagine what they would do with it.

Keep in mind that this trick applies to all properties, from small downtown houses to 30a home real estate.

3. Consider Kitchen Upgrades

A kitchen is almost always the central point of every house. Everything revolves around this room, so you might as well consider completing a few kitchen upgrades.

A tip that proved to be useful is to introduce natural light to the kitchen. If you have nothing but a small window, think about replacing it with a much larger window. Of course, there are lots of minor solutions to think about here such as refurbishing the floor or replacing worktops.

Any idea that can make a new chef more comfortable is welcome.

4. Beware of Details

You probably know that the devil is in the details, a proverb that perfectly suits the real estate business. If you want to get the highest price for your house, you need to pay attention to the smallest features that are easy to repair but make a huge impact on buyers’ decisions. This is what we are talking about:

Wall cracks that make your house look old
Dust and dirt in lower corners and spider web in the upper corners
Broken flooring elements
Faucet leakages
Malfunctioning door handles
Any other broken or dysfunctional elements

5. Think about Energy Efficiency

House owners who make their property energy-efficient can impress potential buyers and convince them to complete the purchase. Details such as wall insulations and double-glazing windows can look great in the eyes of a typical client for two distinct reasons – financial and environmental. Of course, it will also make the price of your home skyrocket.

Up to You

House renovation goes a long way, especially if you need to repair a lot of interior elements. However, you can speed up the process if you focus on the essential improvements only. In this post, we showed you five smart tips to renovate your house and make it more expensive. Can you renovate your place like this?

AUTHOR BIO

Leon Collier is a content creator at several thesis writing services in Edinburgh. Apart from working at the essay writing service UK, Leon is a blogger who specializes in business, real estate, and finance. When not writing, you can find him behind a book or playing tabletop games with his friends. Follow him on Twitter @LeonCollier12 Follow him on Twitter @LeonCollier12

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Photo by Roelf Bruinsma on Unsplash

First 3 steps to become a real estate investor

It all sounds easy; A monthly cash flow generated by renting out real estate. You can quit your job and live the life you always wanted. But not so quick. What sounds simple in theory is not as simple in reality. It all needs careful preparation and investigation. Careful planning is crucial. In this article, you will read 3 practical first steps for who wants to become a real estate investor.

A property offers many advantages, but the purchase of the rental property needs to be considered carefully. After all, you will be making a decision with a large financial impact – the right strategy is vital. If you consider the following steps, there is nothing standing in the way of your first property investment.

Step 1: save money

The more money you can save, the easier the later financing of the property will be. You should therefore start saving as early as possible and also improve your creditworthiness.

While you save capital on the purchase of your first property, you can of course invest the money you have accumulated. However, make sure that your assets will be available in time for purchase. Long-term investments are therefore less suitable.

Step 2: plan financing

Before you actually start looking for a property, you need to be clear about the size of the investment you want or can invest in. Will you start small with a one- or two-room apartment or do you start directly with an apartment building?

When talking to a bank advisor, you will know the loan amount you can get. Together with the money you have saved this results in the upper limit for your investment, which enables you to narrow down your property search.

When calculating, take into consideration additional costs: real estate transfer tax, notary and estate agent fees.

Step 3: object selection

Knowing your upper limit, you will now be able to decide in what type of real estate you like to invest in. You can now study a few scenarios to figure out

what type of real estate (house or apartments…)
in which location
long or short-term rentals

you should invest in to bring you the most profit.

Your time as a real estate investor

Don’t forget to take into consideration your own time that you need to spend regularly to look after your real estate investments.

Although short-term holiday rentals can be a lot more profitable, they will also need more of your attention and time.

Correctly estimate your time

It is not so easy to correct mistakes when buying a property – so make sure to take your time before you decide to buy a certain property.

And even after buying, be aware that you still need to invest time: be it to make accounts, organising repairs and renovations, dealing with your tenants… There will be always something that will need your attention.

A competitive market for a real estate investor

Generally, the real estate market has been on the upswing for several years. If you want to be a real estate investor today, you are therefore dealing with a competitive market.

A big advantage of real estate is the opportunity to generate a cash flow month after month. With rented houses and apartments, you can still make a profit after covering all costs and already collect capital for the purchase of the next real estate.

You have not much money available for your investment? Why not start small. Have a look at www.propertyunder20k.com to find cheap real estate for sale.

Lanzarote’s Lure for Overseas Investors

As Lanzarote starts to reopen its doors to international flights in July and international tourism starts to reboot again we take a closer look at the factors that have made this small Spanish island located off the coast of Africa such a big hit with overseas property investors over the last few decades.

Tourism first started taking off on Lanzarote (and in the rest of Spain) during the 1970’s. With the advent of package holidays and a general increase in air travel from richer European nations such as Germany and the Scandinavian countries. Along with the desire of General Franco to bring in some much-needed foreign currency.

But it was the arrival of British holidaymakers in serious numbers during the 1990’s which really started to fuel the boom in overseas investment and the UK continues to account for around 50% of all visitors to Lanzarote to this day.

What Factors Attract Overseas Property Investors to Lanzarote?

Climate is a key factor. As Lanzarote’s location just 80 miles off the coast of Africa means that the island enjoys great weather all year round. So, anyone who owns a property here can rent it out to tourists for 12 months of the year – as opposed to a seven to eight-month season in other parts of Spain. Whilst owners can also enjoy a break in the sun in their own holiday home whenever they fancy.

Over the last decade, investors have enjoyed a good deal of capital appreciation too. The entry level price of studios and holiday apartments in the main resorts have risen by 50% or more. Yet prices still remain very affordable by comparison with other parts of Spain, with one bed apartments still available from around €90,000.

But it’s the rental returns that are the real draw – as owners are lured by those year-round bookings from holidaymakers.

Lanzarote boasts a very buoyant tourist market. During the course of 2019 over 3 million holidaymakers booked a break on the island – a figure which has doubled in the last 20 years. And this boom in arrivals has attracted inward investment from hotel chains as well as smaller private investors.

Despite these buoyant tourist arrival figures Lanzarote also retains an unspoilt, authentic charm – especially when you venture away from the three main resorts which are all well contained on the island’s south eastern coast. So there is something to attract all types of property investors – from holiday apartments for sale in Lanzarote through to rural, rustic fincas in need of renovation.

Quality of life on Lanzarote is also high. There are over 60 beautiful beaches, tons of great restaurants and a really relaxed vibe. The island is also very small, so it’s easy to get around and take in both the scenery and the fantastic attractions created by the famous local artist and architect Cesar Manrique.

Which Are the Best Locations for Investors?

The main resorts on the island all offer a guaranteed stream of bookings for investors looking to crate their own holiday rental business. Puerto del Carmen is the largest of these three resorts but both Playa Blanca and Costa Teguise are also very popular.

Rural tourism is also growing in popularity – numerous expats and overseas investors have created delightful rental properties in the countryside by renovating old fincas and farmhouses.

Author: Nick Ball

How to lose weight fast with real estate

This is not a joke. I actually lost 9 kg in 6 month working on my first real estate project. Here is how you can lose weight with real estate.

It´s a few years ago now, but still a really nice time to remember – my first real estate project. First, I was actually not to keen on it. It was a massively big 3-storey house in an overgrown garden. The property needed renovation works throughout. A real bargain of course, so we had to have it.

With 64 kg I was not really fat, just a bit roundish maybe.

To be honest I was not really aiming to lose weight.

Somehow it just happened during this renovation project.

Basically, we just parked our caravan beside the house and started working. We managed to get broadband connected to the caravan, so I could still have my “home office” to support ourselves financially.

Getting the hands dirty was the best

There was so much to do in this real estate project more than we could ever do. But we were so excited and full of motivation that we worked like crazy. I remember, I was really keen to make myself a nice office in the house. There was this nice cosy room in the second floor with a great view over the valley. It had to be that one. At the same time, I wanted to tidy up the garden. I believe it was this combination that triggered my great weight loss.

Every day I would run up and down the stairs

I was working in my little office like from a tower and for every little thing I had to run downstairs. Getting a snack, going to the bathroom, getting a tea, answering the door, removing some weeds in the garden… I almost didn´t noticed it. It´s quite incredible how much energy you can get with the right motivation.

After doing this for 6 month I was down to 55 kg and really happy about it. This was a really welcome side effect of our real estate project.

Of course, the project was far from being finished after those 6 months but we were able to sell it with a €10,000 profit. It´s not a lot for a 6-month work but for a first project it was perfect. We had a great time and made a lot of experiences that helped us for later ventures.

Besides to do this as a real estate business, I can really recommend this for losing weight as well.

Find your own real estate project to lose weight on www.all-real-estate.com

Real Estate Investment and the Rate of Return

Once upon a time there was a gingerbread house. It was lovely decorated with lots and lots of candy…

How often we have heard it. “If something looks too good to be true, it probably is”. Unfortunately, a real estate investment is no fairy tale with a happy ever after. Especially when it comes to profit, we must be careful with promises of an unrealistic high rate of return.

But to know if something looks too good to be true, we first need to know what is a realistic rate of return for a real estate investment? And how is it calculated?

The rate of return shows how much profit in percent is made per year in relation to the money spend. Like this it is possible to compare one real estate investment to another or even compare it to other types of investments.

When a percentage value is mentioned as a return on real estate, a serious investor should first ask what return is meant. A distinction is made between gross and net return (or some also call it “cap rate” meaning Capitalization rate).

The gross return covers purchase costs and additional purchase costs, but not ongoing expenses such as administration and maintenance costs or taxes.

It is calculated like this
annual income divided by purchase price x 100 = gross return in %

The net Return includes the current expenses except taxes, so the net return is always lower than the gross return.

It is calculated like this
annual income minus all expenses divided by purchase price x 100 = Net return in %

These are just the very basic types of return – of course there are others, more complex (price return, money-weighted return, time-weighted return…).

Let´s see an example.

You bought a house for 150,000 EUR and you rent it out for 700 EUR a month. Your expenses for the house are 2,000 EUR per year.

This means that your gross return is 5,6 %.
(700 EUR x 12 month) / 150,000 EUR x 100 = 5,6 %

Your net return on the other hand is only 4,26 %.
[(700 EUR x 12 month) – 2,000 EUR] / 150,000 EUR x 100 = 4,26 %

As a result, to get a good idea of your profit it is always better to look at the net return.

What is an average rate of return?

Depending on your country and the type of real estate (residential or commercial) your average rate of return would probably be something between 4% and 10%. Of course, the bigger the rate the better. But again, if the rate of return is very high in a real estate investment you must be cautious. Also look out for the wording “possible” or “potential” yield of …. Meaning you will need to do something to achieve that – maybe even investing more money.

So, if the rate of return in a real estate investment looks too good to be true maybe take a closer look at the tenant of this nice “gingerbread house” or bite marks on the walls….

Real Estate Investment through renovation

It sounds simple: You take the plunge and buy a reasonably priced real estate with small “faults” that are easy to fix and without much effort.

To be successful in Real Estate Investment through renovation you make sure that the building is in a not-too-bad condition. It´s vital to make your research! The least you need to fix, the more you can save. Then it’s time to plan, what needs to be done to create a good layout, make it a charming, attractive property that you can rent and make money from?

You should pay particular attention to those things that attract potential tenants: Maybe a modern open plan kitchen, a gorgeous bathroom and a nice garden…

So far you have to invest money, otherwise you cannot earn anything.

After you finished the renovation of your real estate, you now have two options, depending on your financial needs.

If your goal is to raise a sum of money all at once, then look for a buyer for the house.

Coming up with the asking price is simple: your invested money and the targeted profit make up the purchase price at which you resell the property.

If you rather like to have a regular income from your real estate, then rent it out. Like this you have a guaranteed steady income over a longer period.

If you are experiencing financial difficulties, you always have your real estate and you can sell it anytime to make a larger amount of money.

The only question is: Is real estate investment through renovation not too risky?

The starting point is simple: the cheaper the renovation can be made, the higher the earning potential. Of course, handy people have an advantage here. If you can do a lot yourself, the costs are reduced.

Be balanced. You should not overestimate yourself and certainly not underestimate. With time and commitment, you can work out much yourself. In addition, the Internet is full of information and DIY tutorials.

Of course, you must invest time, but working on a house is fun and, above all, it’s a paid hobby.

Conclusion for Real Estate Investment through renovation

You must be aware that it will take a lot of patience and commitment.

Maybe you don´t find the right tenant straight away. But sooner or later that will be the case. Every entrepreneur, and one such is you if you want to make money, must take some risk. The chance that it will pay is high.

In summary, it can be said that investing money is never easy. However, investing in slightly older properties is a good way to invest your money.

Look around, if you have found the ideal house, go for it!

Here you can find some renovation projects from our site.

It sounds simple: You take the plunge and buy a reasonably priced real estate with small “faults” that are easy to fix and without much effort.

You should pay particular attention to those things that attract potential tenants: Maybe a modern open plan kitchen, a gorgeous bathroom and a nice garden…

So far you have to invest money, otherwise you cannot earn anything.

After you finished the renovation of your real estate, you now have two options, depending on your financial needs.

If your goal is to raise a sum of money all at once, then look for a buyer for the house.

Coming up with the asking price is simple: your invested money and the targeted profit make up the purchase price at which you resell the property.

If you rather like to have a regular income from your real estate, then rent it out. Like this you have a guaranteed steady income over a longer period.

If you are experiencing financial dificulties, you always have your real estate and you can sell it anytime to make a larger amount of money.

The only question is: Is real estate investment through renovation not too risky?

Of course, you must invest time, but working on a house is fun and, above all, it’s a paid hobby.

Conclusion for Real Estate Investment through renovation

You must be aware that it will take a lot of patience and commitment.

In summary, it can be said that investing money is never easy. However, investing in slightly older properties is a good way to invest your money.

Look around, if you have found the ideal house, go for it!

Find some renovation projects on our site.

How to generate passive income with real estate

Many people feel trapped: Pressure and stress at work makes them sick. The good news is, there might be a way out. Anyone can generate a passive income through real estate.

All you need to start is some savings or a good friend who lends you some money. When asking for a mortgage at the bank – depending on the bank of course – they usually would like to see that you have at least 20% of house price yourself.

The advantage of passive income through real estate

Setting up a passive income requires some work at the start. It requires some good decisions and a clever management of your real estate investments. If you want to be free of any work, you will probably ask a firm to look after it for you. After that you are laughing! It regularly fills up your bank account without you moving a finger. Life becomes light and free at once. Finally, you have much more time for the things that really matter to you. Usually only a small financing is necessary to get you started.

Financial freedom through real estate

Of course, real estate is not the only way. There are many ways to generate passive income. Some people write a song, a book or create some other sort of art… or others invest in the stock market. Much of it, however, takes a lot of effort and might not lead to anything. Real estate, on the other hand, is very well suited as a passive income generator. Rental income will last for as long as you are a property owner. You can rent residential or commercial properties. Even if you are sick of it one day you can simply sell it again.

Real estate as passive income: what should I consider?

Anyone who rents out a property must pay tax on the income. Also, the owner has a high responsibility towards the tenants. But this burden pays off in cash. You can have it as simple or as complicated as you like… You are totally free to choose to which extend you like to do this. Some real estate owners bought a house one day and rent it permanently, that´s it. Others use the profits to finance the next house, increasing their real estate portfolio. They usually ask a specialized company to do the property management for them.

Once you generate a certain rental income, you can do things you really like. Now you can write a song, a book or create some other sort of art… and it will be more fun because you no longer have to earn an income from it.

Can you be a landlord? How to generate rental income

Have you recently bought an investment property? Or are you downsizing and debating what to do with your family home now that it is no longer needed as your family has dispersed? Many people in this situation employ the services of a management company who will prepare the property, advertise it, vet perspective renters, collect rent and take are of repairs. Of course they do this in exchange for a percentage of the rental income that the property generates. This can range from a set yearly nominal fee to a full months rent per calendar year or more.

If you want to get into this business yourself without a management company, it’s important to be savvy and smart.

First of all, get to know all the local laws that apply. If the property needs renovating or remodeling, make sure all the work is above board and that you get the appropriate certificates to show that you are following regulations on everything to do with electrical, fire etc. This could save you some major headaches down the line. If you are changing the use of a property then even more paperwork and certification will be required.

When it comes to the type of renovations you do, also take a look at the neighbourhood to help you decide what should be done. You do not want your property to make the whole street look bad. But you also do not need to install gold-plated taps unless your property is in Beverly Hills. Stay in keeping with the area. If it’s not an essential upgrade and it won’t increase the amount of rent you can charge, think carefully before taking on extra expenses.

When it comes to setting the rent, you can take clues from looking at similar properties in the area. It’s important to get the rent at a level that is appropriate – reasonably affordable but not so cheap that people wonder what’s wrong with the place. Rent is your income. If the property is an apartment in an urban area, you might expect a higher turnover in tenants. With this in mind your forecasts should allow for occupancy for 10 full months per year only. In more rural settings, it can be more difficult to find a tenant but there should be less of a turnover. A good rule of thumb is to allow 12.5% of the annual rental income toward repairs and required upgrades.

Set up easy and clearly defined ways for your tenant to pay their rent.

Online is often simplest and gives you automatic records with your bank. Don’t allow arrears to build up. You are the landlord and have the right to demand the agreed rent. However, don’t be unreasonable. Communication is key in this situation and, whilst you may need the intervention of some legal entity, this should be a last resort that follows personal engagement. If your tenant goes into arrears and does not engage with you, check the law and begin eviction proceedings as soon as is legal whilst still attempting resolution.

Finding the right tenant is of course crucial to your rental income.

The first thing to do is market the property. Get some good photographs and write a comprehensive description for an online post. You might decide to arrange an afternoon of open house or set up individual showings with interested people. To make sure you’re not wasting your time, you can also put a short questionnaire online. Like this you will have essential information about them before setting up the viewing. Doing this initial stage by email and online is a big time-saver compared to doing it in person or on the phone.

In the US, you will of course check credit ratings of every perspective tenant. A score of 600 or below is considered bad. In Europe, we rely more heavily on references. Look for references from their previous landlord and employer. Get a copy of their legal ID and their national identity number. Meet them personally. Find out how many people they are planning on bringing to live with them. Have a proper legal rental contract for you both to sign, and give them a copy (free templates are available online for this). Have clear rules about smoking and pets, and put this in writing in the contract.

If you personally live nearby your rental property, it’s easier to keep an eye on it and make sure it’s being cared for appropriately. Of course you should not turn up unannounced or go snooping around when they aren’t home. You must respect their privacy. If you live further away, you might consider employing someone locally. If the property has a garden, having a local gardener to visit regularly will help to keep it looking well without relying on the tenant’s efforts. You will definitely need a local handyman you can call when repairs are required.

It is worth keeping the property in good condition.

In most countries expenses on repairs, cleaning and maintenance are all allowable as claims against your rental income to reduce the amount of tax you will have to pay on your income. So keep good records of these expenses. Your tenant will also appreciate living in a place that is well maintained and where they have a landlord who responds promptly to repair requests.

You can list your real estate on www.listproperty4free.com – start working on your rental income today.

Real estate boom: How small investors can benefit

One word: Crowdinvesting.

Crowdinvesting already allows small amounts to be invested in the lucrative real estate market.

The Austrian and German property market for example is very popular with investors because all big cities are growing steadily.

That’s due to the fact that more and more people are moving to big cities. In Vienna as an example, it is estimated that in 2029, more than two million inhabitants will live there. However, this is associated with major logistical challenges, most important of all: new housing is needed urgently.

This has triggered a real estate boom in the Austrian capital in recent years. The only problem with this was that without a large sum of money in your hands, participation in this lucrative market was impossible.

Now, however, small investors also have the opportunity to earn money from the real estate boom through crowdinvesting.

The idea behind it: The necessary amount for a housing project is not raised by a single large investor. Rather many investors provide the capital through smaller amounts. In return, the small investors receive high returns.

In order to keep track as an investor, several websites provide a good overview and this as a good source for developments and trends, including for the real estate market. The crowdfunding platforms provide clues and ideas for future investment decisions without spending much time on research and analysis.

This could be interesting for those who want to invest in this market for the first time and have not yet had the overview or the necessary capital.

Passive income through crowdinvesting

Crowdinvesting means that smaller investments in the real estate market can also be made. With some Austrian and German platforms one can already invest small amounts of 100 to 1000 euro.

Here are 2 examples:

Austia – www.rendity.com
Germany – www.exporo.de

In Austria there is no limit for individual investments and in Germany, you can invest up to € 10,000 in a project according to law.
What sounds very simple in theory is not child’s play in practice. The Internet offers a sheer infinite choice of possible investment platforms.

Only a few mouse clicks to the first investment

Once you find an exciting project, it usually only takes a few mouse clicks to complete the investment.

Even though initially only little capital is available, this increases rapidly due to the compounding effect, so you can save a decent amount in just a few years. Also, due to the short maturities, the money still remains available at short notice.

Include total failure of a project

Most crowdinvesting investment properties have a short maturity and carry an annual payout.

At the same time, however, it must also be clear that in the worst case, a total failure of a project can occur. You lost your investment. To avoid this it pays to scatter, so to invest in several objects at the same time.

However, crowdfunding platforms seek to minimize investor risk when complying with the Small Investor Protection Act or Alternative Financing Act (“AltFG”).

Still wanting to prefer to invest in your very own project? Why not start with a small project abroad? Here you can find properties for less than 20,000 EUR: www.propertyunder20k.com

Using a property instead of a pension – is it wise?

My trigger for this is a recent article I read . It explained that in the USA you can tap into your pension pot to buy an investment property without any penalties (called the 401k in the US).

This is not something that can be done across most countries within Europe. But you can make a decision not to put money into a pension and instead buy an investment property.

This effectively means the decision needs to be made much earlier (i.e. before you start putting money into a pension), intentionally not put money into a pension and instead build up a pile of cash that you will use for a property purchase. Continue reading Using a property instead of a pension – is it wise?