Apr 11 - Whats best to add when you're renovating?
Source: Resi Mortgage Corportation
If you’re planning a renovation any time soon – it’s best to not let your heart rule your head and overcapitalise on your property, particularly if you’re planning to sell your home in the short term and use the profit you make to upgrade to new digs.
There are several key issues you need to consider when you renovate any property.
The first thing you need to determine is if you are renovating to increase the space of the property or if you are renovating to simply improve the overall look of the property as this will largely dictate the budget you want to commit to the renovation.
However in either case, if any renovation is carried out properly with reliable builders, the budget is realistic and the décor is likely to suit a wide range of buyers’ tastes, it can be relatively easy to add value to your home in a stable property market.
So let’s consider some of the main areas which have the potential to unravel a renovation, leading it to fail in maximising its full potential:
ADDING EXTRA BEDROOMS.
This is generally a good idea, particularly if it changes a property from a two or three bedroom property into a very popular family friendly four bedroom one. But this is not so valuable if all the new rooms are tiny.
These are generally a crowd pleaser and will provide you with a return on investment as long as the pool hasn’t cost more to build than it would have cost to upgrade to a bigger house.
Think about your target market when you’re planning to have one of these as they can set you back a tidy sum and the inclusive technology can very quickly become outdated.
Often viewed as luxury items on a property shopping list, they can add value in more expensive property belts, but they are not to everyone’s liking.
SECOND LIVING AREA FOR KIDS.
If you’re planning to eventually sell your house to a family with children who will soon be teenagers, a second living area can be incredibly valuable, giving offspring much needed space from parents and vice versa.
Particularly in metropolitan areas, any yard space, courtyard, play area for kids or outdoor entertaining area for adults will almost always make you money if you keep the budget in lesser proportion to what you have spent indoors.
Off-street parking spaces and garages will invariably add value to a property as long as they have not been built at the expense of increasing living space instead, which will be more necessary.
It’s easy to get caught up in the flush of renovating but you do need to keep your end goal in sight, which is to either improve your living environment without it costing you excessively - or to have the added cost recognised in a higher sale price.
Back to Resi Reporter