House prices in Australia have been increasing steadily for the last two decades, so if you’ve been paying a mortgage for few years there’s a good chance you’re sitting on a decent chunk of equity. If you’re planning to sell, or you just want to freshen up some tired rooms, it might be worth refinancing and using some of that equity to renovate. Aussie looks at some renovation projects that could boost the value of your property.
Kitchen Capers
A decent ‘budget’ kitchen renovation will probably set you back anywhere from $10,000 to $25,000, with more costly projects pushing the budget out to over $50,000.
A budget renovation is likely to include simple upgrades and a DIY kitchen kit but combined with a new coat of paint, some new cabinets, benchtops and appliances can even make a tired old kitchen look good again. And don’t discount the value of a bit of elbow grease; replacing or cleaning grout, tiles and other tarnished areas can add extra sparkle for minimal outlay.
Even a budget renovation of around $10,000 can add twice that again to the value of your home when you come to sell, so it’s worth the investment. Meanwhile you might even get to see more of the kids if the ‘heart of the home’ now looks like somewhere they might want to hang out.
Bathroom Bonanza
Bathroom renovations can work out a little cheaper than kitchen renos, and if you spend wisely you might have enough for both. A ‘budget’ bathroom renovation could cost as little as $5000 though at the high-end it could set you back up to $25,000.Start by replacing anything that’s broken or seriously outdated. A new shower head, new taps and accessories such as a toilet roll holder and a towel rail can have an instant impact without breaking the bank. If your budget will cover it then turn your attention to costlier items such as a new bath or shower enclosure, and new tiles. And of course, nothing says ‘new bathroom’ like a fresh coat of paint.
But before you head to the hardware decide whether a decent clean will do the trick instead. There’s loads of websites full of tips and tricks on how to transform a dingy bathroom without replacing fixtures and fittings. They usually involve a bit of graft with a scrubbing brush or scourer but might be worth it to save the cash for a different project.
A decent clean and a bit of clever spending could more than double a $10,000 investment when the time comes to sell.
The Great Outdoors
Whether its neat little balcony at the front of a unit or a bigger outdoor space at the back of a house, an attractive outdoor space has a lot of appeal for potential buyers and these days a decent outdoor area is more than just a place to put the barbie, it’s an extra room.If your budget can stretch, then decent landscaping can really add value to your home, in some cases more than any other renovation, but even a more modest budget can have an impact.
If your budget can stretch, then decent landscaping can really add value to your home, in some cases more than any other renovation, but even a more modest budget can have an impact.Get rid of dead or dying plants and make sure lawns are tidy,
Get rid of dead or dying plants and make sure lawns are tidy, soil is mulched, and garden beds are weeded. It will help your garden look low maintenance and well-kept. Consider laying a new lawn or if that’s beyond your budget sow lawn seed on patchy spots to thicken it up.
A budget well spent on plants, outdoor furniture, a new lawn, and a shade sail could easily add three or four times that to the value of your home.
Is it worth renovating?
Before you renovate you need to decide why you’re doing it – do you want to add value to the property or just live in a nicer home?
Either way it’s worth having a rough idea of your home’s value before you start; you don’t necessarily have to fork out for a formal valuation, a chat with a local real estate agent will give you an idea.
From there you can work out how much value the renovations will add, again a bit of research, chatting to a real estate agent or looking at similar homes with better kitchens and bathrooms on real estate website will give you an idea.
Of course, your motivation for renovating might just be that you want to live in a nicer house, but it’s good to know that when you do come to sell, your efforts on improvement won’t go unrewarded.
Whether you’re renovating to sell or you just want to finally turn your place in to that dream home you’ve always wanted, talk to your Aussie Broker today about finding the right refinancing deal for you.
