Renovating a home can be a time-consuming, expensive and at times overwhelming task. If you’re considering the purchase of a “fixer-upper”, it’s important you have an idea whether or not the benefits of the end product will outweigh the cost of investment. If you’re thinking about renovating your current home, or a home you intend to flip, you’ll be looking to increase the value of the property, really boosting your return on investment.
While there are numerous ways in which you can add value to a home, such as replacing a dated kitchen, building a conservatory, or simply adding a fresh coat of paint, if the funds you inject into that renovation are substantially more than what you will recoup through a sale, the investment is not worthwhile.
Home improvements come in all shapes, sizes and prices. Below are some of the renovations you can make that offer the best return on your investment.
KITCHEN AND BATHROOM REMODELLING
For many the heart of the home, the kitchen may well be the difference between a smooth sale and no deal. With the kitchen being one of the most utilised rooms in a property, it makes sense that investing in a kitchen can provide you with the greatest return on your investment. A kitchen is a functional space, necessary for the comfort and convenience of any home, and so you can expect it to be the first room any prospective buyer will want to view. Although kitchen renovations can be expensive, homeowners can also expect a neat return on their spend. In fact, according to the
2021 Cost Vs. Value Report conducted by the US-based Zonda Media, the average homeowner sees up to a 71% return on a kitchen remodel.
Much like a kitchen, bathroom refurbishments also have potential for a high return on investment. A property with a renovated or modern bathroom is more likely to sell at a higher price than a home with a dated bathroom. A bathroom really can sell a home. The trick to renovating within a budget is to tailor your kitchen or bathroom to be in keeping with the look and feel of the property. Practice restraint. Bear in mind the value of the house when deciding on your spending limit. While you could plan a space that is purely aesthetic, constructed and assembled with luxury materials and finishes, and filled with expensive appliances, you are not guaranteed to recoup your spend once the property sells. In many cases, a simple retouch of surfaces and upgrade of appliances will be sufficient.
Not all renovations are created equal. When planning improvements to a property, it’s not always necessary to break the bank to add overall value. Thinking small and budget friendly is also an excellent place to start, as certain minor refurbishments can really affect how a potential buyer views your home. To start with, think first impressions and the property’s curb appeal. This can be as simple as installing a new front door or refreshing the look of a pathway. Tidying and refreshing the upfront look of a property is an inexpensive way in which you can improve the appearance of your home, making it more appealing to potential buyers. Scrubbing and tidying paving, pruning bushes or simply refreshing the building’s paintwork are just some of the ways in which you can make a residence look more striking.
A LICK OF PAINT
In addition to working on your curb appeal, another budget friendly restoration tactic is simply to repaint your property’s interior. A new coat of paint can provide you a large return on an inexpensive investment. The goal with repainting is simply to provide a pleasing first impression to potential buyers. Prioritise entryways, hallways, the kitchen and bathrooms. Focusing on neutral colours is also ideal as it aids potential buyers in imagining themselves living at the property. Refurbishments such as these can be carried out inexpensively, meaning the benefit-cost ratio will be in your favour. There’s no need to go over the top either. Your focus should be on simply making your home look fresh.
Home renovations can range from minor restorations to complete remodelling, but it’s important to remember to take into account your budgetary constraints when planning any refurbish. Although most prospective home buyers will be drawn to both the kitchen and bathroom, it doesn’t mean a renovation needs to break the bank to provide you a good return on your investment. In fact, practising restraint and bearing in mind the value of your home may be the most effective strategy to provide you with an effective ROI. It’s also vital to remember that minor restorations such as a fresh coat of paint and even just a new front door can really make all the difference when selling a home.
HOW WE CAN HELP
If you’re looking for a team to help renovate your home or someone to talk you through the process and put you on the right path, our specialists are always here to help. Whether it’s home extensions, kitchen or bathroom renovations, we can lend a hand, feel free to send us an email or call us on 03 9052 4430.