Thinking about renovating? Read these tips first to make sure you create the most value in your property, without over-capitalising
My partner and I aren’t on the same wavelength when it comes to renovating and decorating. I’ve made it clear that throwing cushions on the bed are a deal-breaker and that I have a firm preference for livability over aesthetics.
My standard of living is exponentially higher than I’d be if it weren’t for her. Our unit is prettier, brighter, more comfy and more happiness-inducing than it would otherwise be. Yet I get the impression that the strategy of buying and renovating presents her with the opportunity to test her theory. If small aesthetic changes work, why not writ large?
This is a battle of emotion versus finances. Straight out, we will never recoup the costs of the stand alone bath she wants. It is far beyond the luxury spectrum of a first home buyer property, let alone a practical use for the paltry square meterage we will buy. If our resale market is first home buyers, why pimp it out to the tastes of a 40-50 year old with a penchant for Coco Republic?
For those of you who want to increase both your wealth and living standards, read on for my renovation tips:
• Be clinical about what will create the most value in your property.
• Work through your budget and hit the highest value-yielding jobs first, and then second and so forth, up to a maximum of 10% of the value of the property.
• Use a 5% as an initial budget of the value budget as cost overruns can easily double.
• Ask yourself, ‘is this renovation widening or reducing the number of buyers for the property?’
• Personalise the property with items you can remove.
• Keep colours neutral
• Improve livability faults
• Cap the renovation costs in your contract with your builder (if possible) with specific set targets
• Future buyers will prefer to choose a modest property in the best suburb they can buy in rather than a mansion in a lesser area. You want to be that modest property that is a jump into an area of higher affluence.
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Written by Jeremy Cabral, Publisher of top home loan comparison website,
HomeLoanFinder.com.au, a free website which aims to help consumers make informed choices when selecting a home loan.