Many people purchase home and do investment one time on furniture painting work etc. They do this only once and don’t think that reinvestment in home can increase its value. In every house you can find one or other room for improvement which will increase its value.
Increase value of your house:-
Increase in value of your house will take time based on real estate market trend but one thing can effect your property value is improvement / reinvestment in your home. You can spend 2 lakh on building one room extra which will add several square feet and increase its value by several lakhs. Similarly extra parking place, storage new painting etc will ultimately add value to home and impact its selling price.
Add years to property life:-
Many property are built once and no maintenance or no improvements are done over a period, it is necessary to reinvest in to this property to enhance life of property. This reinvestment varies based on your need.
You have to be clear that why you are doing this reinvestment to hike the selling price? To get higher rent? Answer of this question determines which type of remolding you are in need of any how much money you will spend on that.
Give more priority to your house while selling:-Â
If two same type of house are placed for sale than obviously someone will give more priority to home in which minimum additional investment are required/ house is more livable compare with other house.
Before reinvestment you should decide that actually you are doing reinvestment for which purpose, for selling, living or for giving it on rent.
Reinvestment for Sell:-
If you are planning to sell this house and doing reinvestment for sale than you have to think as prospective buyer of that home what exactly that buyer look for in that home. You have to be sure that you are not spending too much for doing this remodeling.
Reinvestment for Rent:-
Normal Beautification are sufficient to increase rental value and attract someone for taking that property on rent. You can try repainting house or applying fresh coat of new color shade which provide decent look to your home.
Reinvestment for living :-
If you are planning to live in same home than along with increasing its market value you must think of reinvestment model of your test, like modification in furniture, repainting etc.
One can also think of reducing revenue cost by making one time capital expense e.g one can opt energy efficient appliance etc.
One can get home improvement loan for doing this type of improvements such loans are eligible candidates for tax deductions. For self-occupied house this limit is 30000 Rs/- for rented house no limit for deduction.
Conclusion:-
Before reinvesting you should make your mind that this reinvestment is for sell, rent or for self-occupancy. One should calculate cost benefit by this reinvestment & prepare budget as cost can exceed your estimate.
