If you are investing in real estate to build wealth, then you want to maximize your investments.  There are several ways to increase the value of your property so that you can realize more profits when you sell.  The value of a property is determined by what a buyer is willing to pay for it or a tenant is willing to rent it for. 

The first step in increasing your property value is to make your purchase in the right neighborhood.  You can change anything about a property, except it’s location.  When you think of a neighborhood, you think about it’s convenience, schools, taxes, services, affordability, safety, image, and lifestyle.  These factors all play a part in the property’s value.  You also want to consider the current appreciate rate for the neighborhood. 

Your property is your best advertisement.  By updating your curb appeal, you can boost the value of your property.  Position your property with a well-kept outstanding exterior.  More than likely, hundreds of people will pass by your property each week.  What will they notice about the property?  Will it appear as that run-down rental or will it cause passersby to remark, “isn’t that a beautiful, well kept home”?  If you want your property to generate more income, create an inviting exterior. 

You also want to cut the operating expense of your property.  This can be done by passing the expense on to the tenant, creating low maintenance houses, selecting low maintenance tenants, establishing preventative maintenance (inspections), and by having a handyman on call.  As a rule of thumb, for every $1,000 you cut in operating expenses per year, you create $10,000 in value. 

The most well known tactic to increase your property value is to perform rehabs and cosmetic updates.  It’s amazing how you can simply paint, put in new cabinet handles, and perform other minor repairs to increase your property value. 

You can also convert unused space, such as a garage, attic, or basement into a quality living space.  To earn good profits, your space conversion should achieve the following objectives: please the senses, integrate the new with the overall plan and design of the existing property, and fit the needs of the target market. 

These are just a few ways to increase the value of your property.  Remember that a property is only worth what someone is willing to pay for it.  Increase your net worth by creating value and decreasing expenses.