- Real estate investment can be highly profitable, with average returns of 8.2% and up to 10% for rental properties.
- Curb appeal significantly impacts a property’s value and rent potential due to its outward appearance.
- Investors should stay updated with modern curb appeal trends to maximize returns and find reliable partners who can provide quality materials and services at competitive prices.
- Amenities such as swimming pools, outdoor kitchens, decks, patios, and fire pits are popular investments that can add value to a property.
Real estate investment is one of the most profitable businesses available, with various benefits for those looking to invest. Real estate can provide consistent returns, steady income, potential tax breaks, and capital appreciation over time. With these potential benefits in mind, statistics show that real estate investments can yield higher returns than other asset classes.
According to a report by CoreLogic, total returns from residential real estate investments have averaged 8.2 percent in the United States from 1987-2017. This number includes both rental income and property value appreciation over that period. In addition, rental property investments are seeing even higher returns on average. According to Mashvisor’s rental strategy report for 2022, the highest cash-on-cash return for rental properties across the US was 9.1%, with some cities reaching up to 10%.
However, the success of a real estate investment doesn’t just depend on market trends. To increase the profitability of a rental property, investors need to be smart about their investments. One way to do this is by improving curb appeal – the attractiveness of a property from the street. Curb appeal has been shown to significantly impact not only tenant satisfaction but also the overall value and rent amount tenants are willing to pay for the property.
There needs to be a system to ensure that curb appeal investments will profit your real estate business. Here are a few steps to consider every time you remodel a property’s facade.
Stay Updated with Modern Trends
Real estate investors who want to maximize their returns should stay up-to-date with modern trends in curb appeal design. This is because the exterior of a property has been proven to significantly impact its value and rent potential. You can improve curb appeal by making simple changes, such as repainting a house’s exterior, adding new landscaping, or installing attractive outdoor lighting.
Furthermore, many prospective tenants and buyers will judge a property’s worth based solely on its outward appearance. Therefore, investing in modern trends can help make a property more desirable and attract more potential tenants or buyers. This can lead to higher rental or sale prices for your real estate investments, which translates into greater returns for your business.
Moreover, staying up to date with modern trends also helps investors keep their properties looking fresh and inviting. The interior of rental properties may not need frequent updates; however, the outside of the home will require periodic updating if it is going to remain appealing and competitive in the marketplace. By keeping abreast of emerging curb appeal designs, you can ensure that your investment looks modern and welcoming to potential tenants or buyers.
Identify the Partners You Need
Investing in curb appeal is more than just doing the work yourself. It requires finding reliable partners who can provide quality materials, products, and services at competitive prices. Furthermore, these partners should be knowledgeable about their product offerings and able to provide insights into the latest trends in curb appeal design so that you can make the most of your investments.
Here are a few partnerships you might need for curb appeal improvements:
The lawn and garden of a property are essential parts of curb appeal. A good landscaper can help you create an attractive outdoor space that adds value to the home while keeping it well-manicured and maintained.
A fresh coat of paint is one of the easiest ways to give a property a facelift. Painters should be knowledgeable about different types of colors for various exterior surfaces so that your investments look their best both now and in the future.
Carpentry work may be needed if you install new features such as shutters or window boxes. It’s crucial to find carpenters experienced in construction and design so that you can have peace of mind knowing that you will do the job right.
Fences are a massive hit for curb appeal improvements, especially when well-designed and professionally installed. Fencing contractors can help you create a custom fence that enhances the exterior of a property while also adding privacy and security. Vinyl is a popular yet overlooked material for the home’s barrier, making it ideal to have a vinyl fence alternative company for your real estate partner choices.
By finding partners with relevant expertise, investors can make sure that any curb appeal project is done correctly, quickly, and cost-effectively.
Have Amenity Installation Picks
Amenities are a great way to add value and boost curb appeal. Some of the most popular amenities for rental properties include swimming pools, outdoor kitchens, decks, patios, and fire pits. These features can make a property stand out from the competition and help attract potential tenants or buyers.
Regarding amenity installation picks, it’s essential to consider the costs associated with each feature and its practicality. For example, installing an outdoor kitchen may cost more than having a simple patio or deck but can be well worth it in terms of increasing rent potential. Furthermore, some amenities may not be suitable for all properties – so do your research before investing in any significant projects!
Curb appeal improvements can be a great way to boost the value of your real estate investments. By staying on top of modern trends, identifying necessary partners, and making intelligent amenity picks, you can ensure that your investments yield high returns for years. With the right strategy in place, investors can ensure their real estate investments remain profitable and attractive, no matter the market conditions.