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How to Achieve Real Estate Capital Gain with Certainty ?

Posted by Michel on May 4, 2021

The most famous way to greatly increase your capital is to become wealthy through a profitable resale real estate purchase. However, recognizing a capital gain is difficult to predict unless you hold the property for at least ten years. The case necessitates continuous focus and a well-planned approach from the outset. Follow us to get the essentials that will help you add value to your company!

Buy in the best conditions

First and foremost, locate the appropriate land. We’re not just talking about something that will please your eyes and allow you to project yourself into it; we’re talking about something that has the fundamental characteristics that will allow you to realize added value later.

Try to locate a home that fits one or more of the following criteria:

  • A posted sale price that is less than the market price, ensuring that you can resell it faster if appropriate. Don’t be afraid to re-negotiate, even though it means exploiting a minor mistake.
  • A market that is increasing in value and progressing in a positive direction. The bid would be costlier as a result of attracting new customers.
  • A ability to be abused, since upgrades or works are always the best way to rapidly increase the value of a house.

You can also sketch out your action plan at the time of purchase, estimating how long you’ll keep the asset. If you hold a stock for at least 5 to 10 years in a rising market, capital gains are almost certain.

Maintenance deadlines may also be planned for, such as the replacement of costly appliances (kitchen, boiler), roof repairs, or facades, for example. Reselling after making them is the best technique for increasing the appeal – and price – of the product. However, in order to accomplish them, the budget must permit it: once again, the purchasing price will be crucial, so be cautious!

Housing should be improved

To increase the value of a house, nothing beats making improvements or aesthetic improvements, as we discussed in the previous point. Plan to include in your overall budget all of the work that is obviously required, as well as the expenditures that will make it attractive when you decide to sell it, depending on the type of home and its condition at the time of purchase. As a result, you can proceed to:

  • If the property is outdated, a full renovation is needed. This will include updating the walls, modernizing the kitchen and bathroom, replacing the floors, and adding a dash of contemporary decor.
  • An extension, if the asset turns out to be small and the PLU requires it, to match the property to today’s needs: enlarge the living room, provide a second bathroom, fit out a laundry room, or install wall cupboards, all of which would be assets for resale. There are now relatively inexpensive methods for adding a ground or upper floor extension to a home, which can greatly increase the living space. It goes without saying that this has a significant impact on its market value. This specialized site has more detail on extensions.

Doing the work yourself seems to be the best choice, given that the aim is to maximize the benefit from the buy-and-sell transaction. However, make sure you have the skills you’ll need for each operation to go off without a hitch. Tiling that isn’t installed properly or plumbing that isn’t working properly can lead to resale issues or even unexpected extra costs.

We strongly encourage you to hire a specialist for these tasks so that you can take advantage of the relevant warranties and be protected by protection in the event of a lawsuit, in addition to receiving high-quality work. This is particularly true in the case of roofing and joinery. Furthermore, if you hire a licensed skilled RGE (recognized guarantor for the environment), the government may finance some of your work through the “My renovation premium” scheme.

Enhance in order to resell

How to Achieve Real Estate Capital Gain with Certainty?

We’ve arrived at the point where you’re about to position an ad or contact your preferred real estate agent to list your home for sale. If there is no precipitation, take a moment to calmly determine your property’s strengths. Do not be afraid to ask your loved ones for their thoughts on the property’s architectural rendering, its friendly hand, and any shortcomings that you may be able to fix.

Depersonalize the positive first and foremost among the points of emphasis. Remove any knickknacks, pictures that have been exposed, and any other decorations. You may also repaint white walls that are a little too bright or have faded paint: this activity adds a significant value at a low cost.

Some potential buyers can be put off by a lack of light, so remove the curtains or minimize what blocks the light as much as possible. Store bulky furniture in the garage or with friends to free up space.

Finally, imagine yourself in the shoes of a visitor: is your home coveted? Did you go to great lengths to elicit a crush? An individual who is willing to buy your property at any cost is the best buyer because he would be willing to buy it… at any cost, or almost any cost. Let’s say you will get a little more for it than the going rate. A fantastic way to achieve the desired added value.

Making money by reselling an apartment or a house is a philosophy in and of itself, and it necessitates special consideration. However, the property’s improvement would also help you have a better stay. If your investment is in a rental property and you didn’t think it was a smart idea to invest in a non-professionally furnished rental, beware of capital gains taxes! However, if this is your first rental investment and you use the capital gain to buy a primary residence within two years, you will qualify for a tax exemption. Now it’s your turn to play!

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