Your home is your greatest asset
In life and real estate it is often said that your principal place of residence is possibly your biggest asset. As a passionate industry professional I find this true for so many people in the community whom we get the chance to represent.
With this in mind it is important that as a property owner you do all you can to maintain the property throughout its lifetime to protect and grow your asset, so at the time of eventual sale you receive the best possible cash profit from your investment.
Your home could deliver you a tax-free windfall
Selling your home is a valuable opportunity for wealth and profit. Unlike other financial investments your principal place of residence is free from capital gains tax. Therefore, a chance of a tax-free gain is rare and should be seized with both hands.
Selling is a one-off opportunity for cash
Selling your home presents a unique opportunity to make a chunk of money without you having to sweat for it. Typically every dollar your home sells for over the perceived market value is worth two dollars of your hard-earned labour.
For example if you secure a price $10,000 over reserve – that saves you having to earn $20,000 pre-tax to have that $10,000 in your hand.
If $50,000 is achieved over reserve, you would have to earn $100,000 pre-tax to have that $50,000 in your hand.
Secure the dollars you deserve for the property you own. You get only one chance to sell for profit and then the value passes on to the next owner – so make the most of it!
Clean and sparkling homes sell well
If you do the work for a potential buyer and your property is clean, crisp, complete and:
- is well maintained and freshly painted;
- has manicured lawns and the gutters and downpipes are free from rust and holes;
- has eaves that are spotless and fresh;
This could have a significant impact at sale time.
You could earn more than $60,000 to $100,000 over reserve. The magic happens when you take the hard work out of the equation. Everyone is so busy, potential buyers are prepared to pay for somebody else's sweat and effort. Profit from that.
A home that doesn't require work is an attractive prospect
Maintaining and preparing your home for profit is a successful strategy for everyone involved. Often incoming purchasers are stretched to their limit and would not qualify for a renovation loan. This is the reason why people will pay more for a finished, neat and well-maintained property.
A bank will loan on a property's actual current value.
A bank does not favour lending on unfinished or damaged properties. However, if the property has a clean bill of health, the new purchaser is effectively getting a renovation loan on a product with no risk. It's a win, win.