Home renovations are notorious for going over-budget, so it's unsurprising that many young families shy away from embarking on these projects. However, not only can renovations make your home more liveable in the short term – they can add value that will eventually help you in the long term.
Plus, you don't have to face the cost of your dream renovation alone. As long as you have equity in your property, you likely won't have much trouble applying for a construction loan. Although there may be dozens of changes you want to make to turn your first home into your dream home, some renovations are more lucrative in the long run than others, and the outcome of your loan application will often depend on how much value your renovations will add to your home. Here are three projects to consider:
1. Knock down a wall
Australians are warming up to the open-plan trend in building, which means knocking down interior walls and merging rooms into one spacious living area could make your home more attractive to buyers down the line. You might also enjoy the free-flow of this design, as it makes your home – no matter the size – feel larger and more inclusive.
Consider removing a wall separating the kitchen and lounge, or remove a few to allow the kitchen, dining room and lounge to all flow together.
2. Update the kitchen
The kitchen is one of the most utilised rooms in the home, so it's no surprise buyers place a lot of emphasis on its quality when searching. Angus Kell, NSW manager of Archicentre, a building design and inspection company, told Domain.com.au that a quality kitchen renovation could boost your home's value by about $100,000.
Splurge on stone surfaces but save on fixtures and fittings, as these can be easily replaced and personalised. Installing a dishwasher and enhancing storage and bench space are also key to make the kitchen both enjoyable for you and attractive to future buyers.
3. Get new flooring
Flooring may not always be at the forefront of your mind, but it makes a massive difference to the look and feel of a home. Replacing linoleum with tile or carpet with hard wood will not only be more attractive, but could be more functional, too.
Wondering what other renovations might help you in your application for a construction loan? You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan 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.