Which Home Renovations Offer The Best ROI?

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. 

CURB APPEAL 

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. 

FINAL THOUGHTS 

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.

Everything You Should Consider Before Renovating

A large portion of the rental properties are owned by individuals that manage the day to day operations involved with the operations. A mistake many of these rental owners make is to renovate the houses as if they were their full-time home, which is not the case.

While it is obvious that improvements to your rental property can boost its potential, it is important that rental owners ensure they are updating what truly needs to be. Therefore, they need to choose a time to renovate that will benefit their needs and goals for the property.

We have compiled a list of seven factors you should consider before beginning any renovations:

1. Tenancy

Are you between tenants? While you can make small renovations with a current renovation by working around their schedule, it is best to leave unnecessary refurbishments and renovations for when you don’t have current tenants at the residence.

By doing this, you will avoid potential noise complaints and difficulties with scheduling. On top of this, you will be able to increase the rent for the next lease agreement.

To ensure this process runs as smooth as possible, it is recommended that you make an estimated timeline of your expected repairs that accounts for shipping and installation periods.

2. Your Budget

It is important that you are confident you have the necessary funds to complete all repairs – even if you plan on completing them yourself, they will be expensive. Before buying materials or hiring a contractor, be sure to draft up a budget that you can refer to when making decisions on updates and installations.

Remember that your time is money. The faster you can rent out your property, the faster you will begin receiving payments. Therefore, it is important that you create your budget before beginning so that you can choose materials and stay on timeline.

3. The Time of Year

Depending on where you live, you can adjust your price at different times of year to account for a more competitive market. For example, summer is often a popular time for people to move apartments, and therefore you can begin listing your space at a higher price.

If your close to a university, then you should follow the school schedule and adjust your timing and prices for the peak periods of year

This means that you should always complete repairs and home renovations before peak seasons so that you can have a new tenant in fast.

4. Repairs

A sign that you need to renovate your property is if your tenants are constantly requesting repairs. It is better for your property (and your wallet) if you upgrade appliances and renovate difficult areas in the space rather than continuously repairing outdated or damaged appliances or spaces.

Short-term, it is perfectly fine to complete some of these projects while you have a tenant at the property. This could include fixing leaky pipes or changing some appliances. However, in the long-term, it is best to consider what repairs may need to be done when a tenant is not in the space.

5. General Contractors

If the project you want is not small, them you will be limited to working with a time that your selected contractor is available. If this is not possible for you, then you will have to find another contractor that can do the upgrades following your timeline.

Similar to peak seasons with renting your property, there are peak seasons for renovating properties, so it is important that you contact a contractor as soon as you decide you want work to be completed so you can find a suitable time.

6. Tenant Attraction

Another way to recognise your property needs updating is whether it is attracting tenants. Upgrading it will make it more appealing to potential applicants. The longer you let your property sit empty, the more money you will lose, so you should prioritise updating or renovating your space as quick as you can.

7. Rent or Sell?

Have you decided whether you are going to sell or rent out your property? If you have decided that you will be selling, it is important that all your renovation decisions are neutral, and timeless as to appeal to the masses. Additionally, you should try to create higher value at the lowest cost possible by planning cost-effective renovations.