Increase your property value with these simple renovations
In 2015 there will be close to 450,000 Australian properties on the market based on an average of 5% of dwellings. Of these properties, 315,000 owners could see their home selling for a higher price than what they end up receiving. It seems ludicrous that in this day and age where every dollar counts, there’s such a big number of people being short changed. But there interesting thing is that it’s not the banks doing this. It’s not the government either. It’s the homeowners themselves. And they’re missing out on millions.
Renovating a home before putting it on the market is one way to increase the value of the property significantly. However, it looks like Aussies aren’t getting the most out of their property investments. Research from Roy Morgan shows that since 2010, the number of Australians who are improving their home is declining. The reason isn’t because we’re holding off and waiting to get more cash in the bank first, it’s because we are becoming lazier and caring less. The proportion of Australians who had plans to improve their property in the next 12 months had also declined.
At the end of the day, renovating isn’t always about making a property more liveable. It’s about getting better returns. But the big question is, which renovations make the biggest impact on your bottom line?
Kitchens are a home value gold mine. Experts suggest that for every $1 spent on the kitchen, it’s $3 recouped in the sale price. The only downside is that they can be expensive. You can pay up to $15,000-$20,000 for a great kitchen renovation. The trick to making the investment worth it is thinking about the next user. You need to make sure it’s clean, simple and modern with great flow. Ensuring it has great functionality is important and easy to use appliances in common, well-known brands make a world of difference.
A Paint Job
Painting is the most cost effective way to transform a home and increase it’s value. A house that requires painting internally or externally is seen by potential buyers as in need of hard work and is often considered to cost tens of thousands of dollars. It can turn buyers off straight away, whereas a freshly painted home looks clean and tidy and can easily be moved straight into. The benefit to giving your home a paint job before selling is that it gives you a chance to “un-personalise” the decor. While one home owner likes bright colours and feature walls, you can attract a broader buyer profile with neutral colours and this makes it easier for other people to personalise.
The cost of a paint job can be anywhere from a few hundred to a few thousand depending on whether you are doing it yourself or getting a professional in, but it can transform your home and make it look much more presentable. If you’re considering painting yourself, make sure you read our article on painting to perfection when you DIY, by clicking here.
Bathrooms can be costly if you’re re-structuring the plumbing, but if it is just a cosmetic renovation, then it can be very cost effective. The simple changes are to re-tile, re-paint and perhaps update the tap ware to simplistic and modern options.
Landscaping can have a big impact and studies have confirmed this. A study by Michigan University found that there’s a return of 109% on every landscaping dollar spent for home improvement. A study by the Brisbane City Council, The Economic Value of Greenspace found that streets with 50% or more tree cover, known as ‘leafy streets’ added up to $29,000 above the median house sale price. Making sure the yards are well groomed, look easy maintenance yet stylish can be a great investment. Keeping garden beds weed free, keeping the lawn well trimmed and using stylish pot-plans that suit your climate are great things to start with.
So when you’re getting ready to put your house on the market, don’t be caught out by not investing in some updates - they sure could go a very long way! Have you renovated to increase the dollar value of your home? What renovations do you think are effective?