01 Mar How you can add value to your home by renovating
We get that you spend a lot of time saving to buy a home and once you finally have enough for that huge expense, the last thing you want to do is spend even more on it. But have you considered how beneficial renovations can be. Firstly, you avoid the agents fees, stamp duty and government charges on a new purchase but most importantly, if done correctly you can add significant value to your property.
What if you could make your house $50,000 more valuable, by only spending $20,000 to do it? This is a great way to invest in your future and for most people, is very achievable. If your home has the potential for major value-adding renovations, why not go for it?
Doing more with the space you’ve got
After years of obsessing over deposits and loan interest rates, how much do you really want to keep spending on real estate? However, you may want to strongly consider renovations if you can make a $2 return on every $1 you invest. The best way to do this, says buyers’ agent Patrick Bright, is to redefine a large outdoor space.
“If you have one big paved or grass area, break it up and put a pergola over one part of it so that it is a defined entertaining area. And if you’ve got room to do it, whack in a built-in barbecue, so that the space becomes a ‘barbecue entertainment area.”
If the indoor part of your house is already fairly well defined, why not change the outdoor amenities, adding value where there previously was none. Your front and backyard spaces can be turned into small pools, carports, garage spaces, outdoor kitchen and dining areas and more. All of these can add serious amounts of value to your home.
Investing in high-quality renovations
You might think the best way to earn a strong return on your investment is to get materials as cheaply as possible, minimising overheads, but often that’s not the case. It’s almost always better to avoid cheap materials – any defects in your renovations such as chipping paint or rotting wood will detract value in the long run, not add to it. Getting the right advice from both a builder and a mortgage broker will help you reach a happy medium. Understand exactly what high quality materials / feature pieces should be used in a renovation to maximise the value of the property. Have a discussion with your broker to understand exactly what your borrowing potential is.
Just because you want to renovate and can afford it – it doesn’t always mean it’s the right thing to do. That’s why understanding exactly what your house is worth and knowing the difference renovations will make is important.
At Finestream we can give you an estimated valuation of your home that includes the renovations you have been wanting to do for a long time. This gives you the ability to realistically see the value a renovation can bring to your property.
Work with us, and we’ll find help you plan and finance every stage of your home renovation project.
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