Most home sellers and real estate investors focus solely on their own home improvements and remodels to increase their property values. While this can sometimes be a great investment, it has its limits. No matter how grand the renovations and additions, appraisal values will always be capped by comparable neighboring homes.
So instead of piling tens of thousands of dollars into improving a home with little return, how about building up the value of the entire neighborhood or community to increase the profit potential on any current and future homes you might invest in there? It might even end up being far cheaper than those lavish remodeling and interior design plans you have been kicking around.
Here are four ways homeowners and real estate investors can achieve this:
1. Get the Government to Pitch in
Local governments are increasingly looking for ways to improve local economies and boost housing markets. Consider reaching out to them with some new ideas for revitalization plans or grants for those buying and improving homes in the area to fuel values and home sales volume.
2. Invest in the Community
Between volunteering and financial support for local programs, homeowners and real estate investors can do a lot to improve quality of their communities (and subsequent property values). Find out which initiatives you can get involved in for reducing poverty and crime and increasing activities for kids that will help make it a more attractive place to live.
3. Invest in the Infrastructure
In communities where the local government is cash strapped, real estate investors and local residents can pool together to fund the development of parks, sports complexes and other neighborhood facilities to enhance the community it’s property values.
4. Marketing
Sometimes a lack of demand for local real estate is just a matter of marketing and getting on the radar of home buyers and other real estate investors. What can you to do improve the positioning, reputation, appeal and visibility of your community?
