Renovations With The Highest ROI (For Investment Properties!)
When you buy an investment property, you can increase your returns if you renovate it. What’s more? You’ll get the highest forced appreciation when you update elements that are beyond its useful life. This is why Toronto offers great value-add potential in many of its century old houses. Follow along as we walk you through the best renovation opportunities in Toronto investment properties.
Our Top 5 Renovations For Investment Properties
When you choose value-add work, consider opportunities that provide the best combination of highest returns, lowest costs and time required. Based on these requirements, here are our all-time favourite investment property renovations to tackle.
1. New Kitchen
Nowadays, kitchens aren’t just places to cook meals. It’s one of the most popular hangout spots for family and friends in a home! Because of this, a good looking kitchen is one of the top requirements for buyers and renters alike and offers the best return on investment (ROI), based on numbers by HomeStars and the Appraisal Institute Of Canada. Here is the what investing in a rental grade kitchen would look like for 2020:
2. New Bathroom
When it come to bathrooms, people like it clean. New bathrooms give that added assurance, which is important to buyers and renters. So, upgrading bathrooms will boost your selling price and help you achieve top rental income.
3. Fresh Paint
4. New Decor
5. Basement Suite
Creating a basement suite might not be a beginner’s project, but it brings great rewards. A secondary suite will increase your rental income and selling price significantly compared to having a single unit in the same property. Unlike paint and decor that will depreciate with time, an extra basement unit is a longer lasting upgrade.
Best Renovations By Category
When it comes to choosing the right upgrades, any of these 5 renovations can give you great returns on your investment. If you had to choose between these upgrades for your investment property, the “best renovation” can depend on your objective and requirements, such as variations in returns, cost, or time.
When you’re new to real estate investing, it’s a good idea to start with easier projects first. For example, a basement suite can offer great returns but it can be overwhelming if you’re not ready for it. So, start with updating kitchens and bathrooms in your first investment property. Once you build up the confidence, you can move onto bigger projects as you grow your real estate investment portfolio.
Need Help With Real Estate Investing In Toronto?
If you buy an investment property with us, you’ll have an expert on your side. We’ll recommend suitable renovations for you and connect you with our reliable network of contractors. If you have any questions along the way, we’re ready to help.