AUGUST 23, 2021 | 5 min read
5 Ways for Medical Professionals to Increase Their Home Value
Our home is more than a place to live, but also a fantastic way to build wealth through home equity. Read this article to find out how to increase its value.
We understand well that medical Professionals get into medicine to help people, not for the money. But the reality is that financial well-being and personal finance are extremely important for physicians, just like anyone else. In fact, improving our financial well-being makes us better doctors. Trust me, I’ve lived it.
There are many ways medical professionals are improving their lives and getting closer to financial freedom. Stock, bonds, real estate, syndications, buying businesses and medical practices are some of them. We often get stuck thinking where are we going to get the capital to invest in such avenues. But we forget one of our biggest resources. Our home.
Our home is more than a place to live, but also a fantastic way to build wealth through home equity. After living for a period of time in your home, your home value will go up. When you sell you can get the capital for all the other investments. However, is waiting for that number to go up the only thing we can do? Not really. Is it possible to increase home value beyond equity appreciation? Definitely. Are you interested in finding out how this can be done? Let’s dive in!
1. Complete minor repairs.
I’ll start by sharing my experience. I recently bought a property where I live and rent out a portion to others. You’re more than welcome to read other blogs where I talk about house hacking and why it is such an exciting way to create a cash flow. This time, I’ll talk about one of the first challenges I faced and the first thing you should look into if you want to increase your home value.
I’m talking about minor repairs. First week into buying the house one of the tenant’s bathroom ceilings fell down and there was a big water leak. It was a bit intimidating but you have to deal with these things as they come.
That being said, you can also anticipate these little issues. Getting rid of the squeaks, scratches, and dents is a great way to start. You may need to touch up moldings or door frames too, or even refinish hardwood floors. Basically, make sure everything works properly.
2. Add fresh paint.
Let’s continue with a simple task. The best part is that not only will you be increasing your home value but also you will enjoy the benefits of this improvement. While interior paint is inexpensive, it is an effective way to add beauty to your home whether you are doing this for yourself or thinking about making it look attractive for future buyers.
Whatever the case may be, it’s important to select a color that can be attractive to an extensive audience. Generally, walls painted in cool, natural tones — like pale teal, pale gray or oatmeal — are often seen in top-performing listings and perform way better than traditional white walls.
More often than not, bright saturated colors are best to be reconsidered. You may want to stay away from reds, browns and yellows that seem too colorful. Do you need practical advice? Just go to Pinterest. It’s very likely some already put together thousands of boards and images with trendy color combinations that will get you inspired.
3. Add space.
Pro tip: Improve the experience. A house is an experience and the quality of this experience is determined but how much thought was put into the spaces and rooms. Does your house have enough bathrooms? Maybe it does, but would it be better if you had another one closer to the living room. Would that make things a hundred times easier?
When I renovated my home, my goal was to increase equity 20% to 30%. Adding another bathroom to some units was one way of achieving this goal. In fact, we added one bathroom, and renovated the existing one. I did put a lot of thought into these changes, I went to Rentometer and looked at the local rent for 2beth-1bath and 2beth-2bath. It turns out the difference in rent was between $300 and $500 because the units had added value.
While I’m not encouraging anyone to go crazy adding rooms and knocking down walls, I decided to put my money into increasing the property value by adding space and It was worth it. This is a great option to consider especially if you are house hacking and want to increase rent income.
4. Add high demand finishes.
Whether you’re thinking about selling in the near future or you are house hacking and want to increase your rent income, you can increase demand for your home by adding trendy finishes.
I’m talking about stainless steel appliances and quartz countertops in the kitchen as opposed to other finishes that might not be very popular even if they’re high-quality. Other small changes like upgrading doorknobs and locks are also welcomed. Smaller finishes are very effective while keeping upgrade costs low.
5. Add beauty.
Making your home look more attractive can really pay off. Recently, 22% of sellers’ agents said staging a home increased the dollar value offered by buyers 1–5% compared to similar homes. In other words, home-staging techniques can really increase value.
Once more, I recommend using apps like Pinterest to find out what the latest trends in home decor are. The best part about adding beauty is that you decide how much you would like to invest and it doesn’t have to be a lot. Even the smallest detail can make a huge difference when staging a room.
I’ve used all of these ideas myself and they have certainly made a difference. Needless to say, increasing your home value can really ramp up your journey to financial freedom. I truly believe real estate investing is a wealth accelerant that physicians are uniquely positioned to take advantage of.
AUG 7, 2021 | 5 MIN READ
House Hacking for Medical Professionals
Sometimes it feels like we are trading our precious time by working tirelessly to get paid. Yes! We do love what we do, but we all know burnout is huge among healthcare professionals. The solution is within your reach.
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