Renovating is one of the best ways for property owners to increase the value of their homes. If you’re looking to add value to your home, but don’t want to renovate every room, it can be difficult to decide where to start.
Here are some ideas to help you decide which part of your property to focus on for the best results.
The kitchen
The kitchen is widely regarded as the best place to start when renovating – and while it can be a lot of work, the rewards can be substantial. Despite being one of the most expensive rooms in the house to renovate, there’s no need to break the bank.
An updated kitchen can make a huge impact on potential buyers, by giving your home a ‘ready to move in’ feel. The Housing Industry Association of Australia report that the average cost of a kitchen renovation (PDF) in Australia is $21,862, but the difference a modern kitchen makes when you’re selling can be substantial.
As far as appliances go, you might choose to purchase a single-brand suite to give a cohesive look and feel to the room. However, there’s often no need to go ‘top of the line’ when it comes to elements such as ovens. Adding value is about keeping costs to a minimum while refreshing the room.
The bathroom
Next on the list is the bathroom, a key element in any house – especially if the structure isn’t particularly modern. Similar to kitchens, an updated bathroom can provide a home with a much-needed contemporary boost, and it doesn’t have to cost the earth.
There are a number of cost factors to consider when renovating a bathroom that don’t apply to other rooms in the house, such as plumbing and waterproofing. Moving the location of sinks, toilets and showers can add a lot to the overall cost, and this money probably won’t result in a lot of value being added in the long run. Therefore, a key tip for doing up a bathroom: don’t overcapitalise.
It’s important to consider the home as a whole, and the features you believe will be desirable for your location and target buyers. If you’re hoping to attract a family, for example, consider installing a bath.
The great outdoors
Another area ripe for high-impact renovation is gardens and back yards. Opening up the rear of your home to create an outdoor entertainment area is effectively the same as adding a whole new room.
If your home already has an outdoor entertaining area, it’s worth considering whether there are elements that could be updated. Adding an outdoor kitchen or designated barbecue area can have a positive impact on the value of the property.
And because first impressions count, don’t overlook the front yard. ‘Curb appeal’ can be the difference between potential buyers driving by or stopping to take a look inside.
There’s more to adding value than giving your property a quick lick of paint and hoping for the best. The right renovation, in the right area of the house has the potential to add tens of thousands to the value of your home – and choosing the right way to invest your time and money could mean a better result when you decide to sell.
Paying for it
Of course, the best way to fund improvements on your home is with cash. However, the reality is that most people won’t have the capacity to save for the improvements in full, and this is where a loan can be helpful. A personal loan is a quick and easy way to access up to $30,000 for the improvements. And as it is paid off over normally 5 years, the accrued and compounding interest is minimal. This also means that you leave the increased equity untouched in your home.
Your home loan can also be increased to fund the renovations. This process is a little slower than a personal loan and will be a more thorough approach to getting the funds. This method would be more recommended, the higher the cost of the work being done. Although better as a cash flow method, you will end up paying more over time due to compounding interest.
As always, your Tungsten Home Loans Mortgage Broker is a great place to start your enquiries to work out the best method of funding, and to help with what sort of quotes and plans will be required to move forward.