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Forget major works, just go for cosmetic improvements if you want to quickly add value.
ANYONE who has been through a renovation knows costs can blow out and the end result may not be worth as much as you originally thought.
Renovation has become a national pastime, spurred on by an abundance of home renovation television shows which show just how “easy’’ it can be.
The latest figures from the Australian Bureau of Statistics reveal homeowners spent $1.9 billion on renovating in the December quarter.
Renovations can add value to property but you need to plan properly and take on the right projects according to Dream Design Property founder Zaki Ameer.
“Unfortunately, however, many investors and homeowners go about renovating in a way that involves more financial risk than necessary,’’ he said.
Try to avoid knocking down walls and major renovations if you want a quick turn around. Picture: Thinkstock.Source:News Limited
His tips for renovating to add value are:
Avoid anything structural and stick to existing layouts to keep costs down.
Use existing layouts where possible, such as bathrooms and kitchens. Do a well-planned cosmetic renovation to revive your home and keep costs low.
Know which areas will add the most value.
The three main areas he believed added value were street appeal, the kitchen and the bathroom.
Avoid homes on major roads or under fight paths. Make small changes to bathrooms and kitchens by changing tiles, adding new light fittings and more storage if possible.
Cosmetic touches such as painting are quick and can add value.Source:ThinkStock
Buy and then renovate at the lower end of the market.
Improving the street appeal, but fixing the garden can add value.Source:News Limited
“Even if the house needs a significant amount of renovating, if it is located in a suburb with desirable property values, a significant profit can often be achieved,’’ he said.
Time is money so only buy properties which can be cosmetically improved quickly.
You must work out what your property will be worth after it is renovated to work out if the work is worthwhile doing.
“Avoid properties that require work that will be expensive and time-consuming, such as stormwater or rewiring,’’ Mr Ameer said.
Use your creativity wisely.
Mr Ameer said aim to increase the physical attraction of the property. ‘’For example, if the backyard of a property is neglected its value can increase simply by adding basic garden items such as a picket fence, garden beds or plants as it increases the appeal,’’ he said.