If you’re thinking about how to improve your home or investment property prior to putting it on the market, the preparation you do beforehand can make a big difference to the price it fetches on auction day or through a sale process.
The idea is to work out the best ways to add value to your home or investment property, without overcapitalising.
Start with the bathroom and kitchen
Renovating these two rooms can make a substantial difference to your property’s value, so these are smart areas to invest in to increase your property’s value.
A completely renovated kitchen will cost anywhere between $10,000 and upwards of $40,000. A new bathroom will generally cost upwards of $20,000.
If that sounds too expensive for your budget, there are other workarounds you can use to spruce up these important rooms.
For instance, it may be possible to spray over tiles to give them a fresh new look. Adding shelves and bathroom accessories, as well as investing in new towels and toiletries, are other easy options for giving the bathroom a new look.
If you don’t wish to completely renovate the kitchen, a cheaper alternative may be to replace the cupboard fronts and handles and replace older appliances. Another option is to replace the bench top.
Whichever path you choose, do the best you can with these rooms to get the highest price possible for your property.
First impressions make a big difference
Giving both the exteriors and interiors a lick of paint is another easy way to add value. You can do this yourself, or outsource to professionals.
Cameron Kusher, head of research for Australia at CoreLogic RP Data says, “Street appeal is very important when you’re buying a property. You want to make a good first impression when prospective buyers look at the property. Landscaping is another way to make your home stand out from other similar properties in the market.”
Putting in a pool is another option to add value. But think carefully if this is right for you and your universe of prospective buyers.
“Some people want a pool and others don’t want the upkeep. So for some people it will be an added bonus, but that’s not true for everyone. In some instances, it might discourage people from buying. One approach is to leave space for a pool so it’s an option for someone looking to buy the property and add value in the future,” says Kusher.
Second storey or granny flat?
Property owners who want to really drive the value of their residence could consider either building a granny flat or adding a second storey.
The beauty of a granny flat is that it’s a potential source of revenue if it’s rented out, which may be attractive to potential purchasers. But a second storey may open up views, which can really drive property prices. The right choice will depend on your budget and the type of property you own.
Indeed, Kusher warns against overcapitalising on renovations. “You can spend hundreds of thousands of dollars, but the important thing is to make the home functional and look good. Don’t spend too much money because it’s very hard to see the return on investment if you do overcapitalise.”
Do your due diligence by looking at prices owners of renovated properties in your area have been able to achieve before deciding the best way to add value.
You can contact a Smartline Mortgage Adviser on 13 14 97 for mortgage advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.