Don’t Move…Improve! Our Top Tips to Add Value to Your Home
Dreaming of a better house for your family but can’t face the prospect of moving. You are not alone.
The main reasons that people stay put are:
- The financial costs of selling – e.g. agent fees, stamp duty etc.
- The hassle of moving.
- Not getting the right price due to market conditions.
So don’t move… Improve!
Quality renovations undertaken on your home can bring a new lease of life to your property, as well as adding thousands of dollars to its value. It makes financial sense to invest in your property and to later reap the rewards.
If you have children and they’re growing older, you may want to adapt your family home to accommodate their changing needs. If they’re settled at school and you like the locality and neighbourhood and don’t want to move, a renovation project can be the best option to make your home, not only more valuable but also more practical.
Financing your renovation project
Remember the key to any successful project is proper planning, so make a note of what you want to achieve and the money you want to spend. You may have equity in your home and you may be able to use these funds for the renovation. If you are planning projects costing more than $40,000, the best loans will be tied to your property, so using the equity in your home may be the best bet. Mortgage rates in Australia are amongst the lowest we’ve ever seen, so you can either take out a new loan or extend your current one.
Pick the areas that will give you the best bang for your buck
One of the most common reasons to renovate is to increase your property’s value, whether that be to sell or rent. It’s a well-known fact that kitchen and bathrooms are the best rooms to upgrade to achieve maximum returns. A kitchen renovation ranks number one as this is usually the hub of a home. A well-designed, fresh looking kitchen is usually high on a buyer’s wish list. An updated bathroom with shower and bath is also a good investment. A tired outdated bathroom detracts from your property’s value. As a rule of thumb, for both the kitchen and bathroom, you should achieve an average return of $2 for every dollar you spend.
Investigate your neighbourhood
While the kitchen and bathroom are a good place to start for any renovation project, do some research to see how your home compares with others in the neighbourhood. What is your outdoor area like? Perhaps would-be buyers are keen on a sumptuous al fresco area and a swimming pool, or maybe a large lawn area is more of a priority. Tailor the project so it suits demand for that area.
Look at the layout
If you’re ready for a bigger challenge, you might want to look at knocking down walls to improve the layout, or even extend. This can add significant value to your home. However, be prepared for disruption and be mindful that you don’t spend more money than you’ll be able to make back.
Before you make any firm decisions about your renovation plans, talk to us at Finance Detective. We can advise on all kinds of loans and refinancing. We deal with a large network of lenders to help you find a suitable financial solution for your project.
Call us today, on (08) 9289 7777.