select
|

How to make a profitable purchase

If you’re property wise, you’ll be looking to make more “profit” when you buy a home than when you sell it in future.
 
And, says Berry Everitt, CEO of the Chas Everitt International property group, the way to do this is develop an eye for homes in good areas that may not look so great at the time of purchase but have good profit potential – in other words, homes that have the “right” things wrong with them.
 
Writing in the Property Signposts newsletter, he says these items include the following:
* A bad paint job. You should actually consider it a plus if you find a good property that really needs painting. You can discount your offer to compensate for the painting expense and inconvenience, and, immediately the paint is dry, look forward to an increase in home value equal to three to five times the cost of the paint.
* Old or uninspiring light fixtures. Among the least expensive and most profitable home improvements are new light fixtures - and skylights to open up dark hallways, bathrooms or kitchens.
* Ratty old carpets (provided the flooring beneath is sound). Another extremely profitable home improvement you can make is to install fresh new floor coverings. Sanding and varnishing existing wooden floors is also a good option, especially if they are in keeping with the age and character of the home.
* A neglected garden. Spending even a few hundred rand on plants, lawn, and a garden clean-up often adds two to three times that expense to the market value of the home.
* One bathroom. Buying a one-bathroom home can be very profitable if a second bathroom can be added within the existing floorspace. A second bathroom usually adds at least twice its cost to the home’s value – and it makes the home more marketable.
 
“On the other hand, though, you should absolutely avoid buying a home that needs a new roof, a foundation repair, a major electrical or plumbing upgrade, or repairs to water or termite damage.
 
“And, unless you are planning to live in the home for a long time, avoid buying one that will require additions such as a family room or another bedroom to make right for you. Such upgrades rarely add as much market value as they cost, and you are better off buying a home that already has all the rooms you need, even if it is somewhat more expensive.”
 
Issued by Chas Everitt International


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK