INCREASING the value of your property, whether it’s your dream home or being used as a source of income, can range from simple fixes to major overhauls that transform an entire neighbourhood. But as realtor Davica Hamilton warns, you need to be careful not to pump too much money into a property that will not pay you back.

This typically happens when emotions get involved. The owner invests a lot of money and effort into giving his/her property a facelift but then the offers don’t come rolling in as expected once it goes to market.

“Before embarking on any home improvement project I recommend that homeowners look at both internal and external factors that may affect their budget, and conduct work to meet this budget. In addition to not breaking the bank, this will safeguard against over-improvement and over-valuation. I have seen several properties stay on the market for way too long because of this mistake, and [it] often results in the seller having to reduce the price to get the property sold,” Hamilton told the
Jamaica Observer.

“Often the vendors who are affected by this have sentimental attachments to the property because of their sweat equity and care,” she added.

Hamilton has been with Sagicor Properties for more than seven years and has amassed a wealth of experience during that time. She pointed to one client who successfully renovated a Tower Isle, St Mary, property and converted it into office space. Tower Isle is considered a resort community due to its proximity to hotels and attractions on the north coast, and the fixer-upper — part of a 10-unit complex sitting on 0.3 acres of land — will now be a revenue stream for a savvy investor.

Hamilton explained that while it helps if the property is in a good location to begin with, there can be financial gains from those in less desirable areas.

“The one located in the high-demand and affluent location offers stability in value, and demand outpaces supply. This property has strong resale and rental potential. With minimal maintenance the value will continue to increase,” said Hamilton.

“A home situated in an area affected by lack of care, abandonment, and other socio-economic issues will not benefit from the same level of stability and demand. On the positive side, this area may offer opportunities through renovations and improvements,” she added.

This is where it may be useful to know and be able to work with your neighbours.

“With the right buyer, mindset and strategies, and perhaps even community involvement, homeowners can invest in and enhance the value of such a property. An investor may even be able to capitalise on buying low and selling high after suitable inputs. If they have the time they may get involved in community revitalisation to attract new businesses and residents, which is, in essence, gentrification,” said the experienced realtor.

To improve the aesthetics of a property and the wider neighbourhood she suggested a few simple, less costly steps. In real estate lingo it’s called kerb appeal and typically includes things like adding a tasteful wall or gate, manicured lawns, decorative trees, etc.

“Working with neighbours to improve the look of the street is a strategy that creates a positive impression on potential and current residents within the community. In a location impacted by neglect, community engagement to organise clean-ups, local events, and community watch programmes create a more desirable environment for residents and potential homebuyers,” said Hamilton.

For your individual property, a fresh coat of paint, minor upgrades to the kitchen and bathroom, as well as the addition of modern touches to a traditionally designed home will help.

Then there are the upgrades that may cost a bit more to do but give a bigger pay-off in the long run.

“Adding smart and energy-efficient upgrades not only appeals to the environmentally conscious but it also improves standard of living through lowered energy bills,” advised Hamilton.

“Things such as window upgrades, smart lighting, inverter ACs, fans and solar energy solutions are very important upgrades in Jamaica as we are so heavily dependent on fossil fuel. An eco-friendly property attracts a wider pool of buyers and will ultimately translate to higher resale values for the owner,” she said.

But she stressed that nothing beats taking care of your property, fixing the small things before they become huge headaches.

“Consistent maintenance by addressing minor issues promptly is a great way to preserve the condition and value of your home. It is less costly to address a leaking pipe or roof than to do extensive works caused by deterioration if these issues are left unresolved,” cautioned Hamilton.