Feature: Adding Value
Creating value is one of a property investor’s most powerful tools. Along with leverage, it’s what makes property investment so attractive. The easiest way to add value is to improve a house: even a basic renovation can make a significant difference. And in the time of Covid-19, when falls in house prices and rents are expected, the prospect of adding value to an existing property seems even more attractive.
But is it worth taking your renovations to the next level, especially in these uncertain times? Should you really add a room to your rental? Adding a bedroom has the potential to increase both the value of your property and your rent – in many cases by more than enough to justify the cost. Done well, an extra bedroom can be an outstanding investment. Done badly, though, you could spend a large amount of money and create a less appealing property that’s harder to rent and resell.