How To Identify Overlooked Value
Curable obsolescence- Curable obsolescence refers to property features that can be easily fixed or updated to restore the property’s value. Examples include outdated finishes or layouts that can be renovated to meet current market standards. In some cases adding ½ baths in common areas and opening up the kitchen are great ways to cure obsolescence and capture additional upside.
Characteristics of Curable Obsolescence:
Easily Fixable Issues: These are flaws that can be remedied without excessive cost or effort. For example, outdated finishes or appliances can be replaced to meet current market standards.
Cost-Effective Solutions: The cost to cure these issues is typically less than the increase in property value that results from the improvements.
Common Examples
Impact on Property Value
Addressing curable obsolescence can significantly increase a property’s marketability and rental income potential. By investing in necessary updates, property owners can avoid depreciation and enhance overall value. In summary, curable obsolescence is a manageable aspect of property ownership that, when addressed, can lead to improved financial outcomes.
