There are two types of renovators:
Those who want to create a dream home for themselves,
And those renovating a property to maximise its value.
Before you give your renovation builders the OK to strip out your old kitchen and install that no-expense spared kitchen you’ve always dreamed of, you should consider this: A high-end kitchen with top of the line finishes might not be worth as much to the potential buyers when it comes time to sell your property.
Structural renovations are major alterations to the property such as knocking down walls or building an extra storey. This type of work can be quite costly, time-consuming and will require council consents before any work take places. The upside is that you could add a massive amount of equity if you do it right. The downside is that you could easily overspend.
On the other hand, cosmetic renovations involve minor changes such as repainting, ripping up the old carpet or installing new lighting fixtures. You can do these at a fraction of the price and still achieve similar results.
Smaller renovations like replacing or resurfacing cabinet doors in the kitchen or polishing the worn wooden floors can increase your sales price significantly.
Most people consider the kitchen to be the heart of the home, the entertainment area of choice in our modern lives… and because of this, updates in this room pay off. You can expect to recoup your investment on a kitchen renovation, as long as you don’t go overboard. Don’t make your kitchen too much fancier than the rest of the house, or the best in the neighbourhood.
When it comes to how much you spend on kitchens, prices can start from $5,000 for replacing some of the hardware or resurfacing, to $75,000, or more for a full strip out and renovate. You will get the biggest bang for your buck in a kitchen remodel by looking at colour. Fresh paint, in modern colors, can go a long way towards updating the look of your kitchen. Plus, paint is relatively cheap.
While you are thinking of updating or upgrading the kitchen, think about adding lighting. Adding new or brighter lighting enhances the space. Don’t splash out on the flashing LED lighting unless you want the area to look like its off an episode of Star Trek.
If your home only has one bathroom, you can add significant capital value by adding another.
When it comes to finding room in your house for an extra bathroom or even just a toilet, take a look at any extra rooms or underutilized spaces. Consider other spaces, such as large closets or bedrooms that can have walls moved to allow more space for the bathroom. You’ll also need a local council consent for the new sanitary fixtures, so speak with a builder before you go knocking out walls in anticipation.
Replacing door handles, kitchen cupboard handles and light fixtures are a cheap but effective way of adding value to your home
One of the simplest, most cost-effective ways to increase the value of your home is to paint it! Freshly painted rooms look clean and updated — and that spells value; That is also the same with the exterior. When selecting paint colors, keep in mind that neutrals appeal to the greatest number of people, therefore making your home more desirable if you decide to sell.
When considering any type of renovation, it is essential to make sure that any improvements made are appropriate for the particular type of dwelling and local property area. One mistake kiwi home owners often make is renovating their dwellings well above the average of neighbouring houses. Buyers are attracted to particular neighborhoods because of the services located nearby and because houses in that area are being sold in that buyer’s price range. Although a house may have been renovated well above the standard of others nearby, it may still receive the same or more interest than others on the market, it is unlikely that it will command a capital gain well above average because of the extra improvements.
Avoid over personalising if you are intending to sell in the near future. When a property owner renovates to their own style, buyers tend to treat the property in the same way that they would with an unrenovated property. They buyers will want to discount down the home purchase price to reflect the cost to re-do the renovation so that they are not over-paying for a property that will ultimately require significant work.
The level and condition of a renovation is what determines the value of the home. Look at the cost of the renovation and assess the time frame since the last renovation was completed, or how long you anticipate you’ll be in your newly renovated home.
A newly-renovated property will add significant capital value onto an immediate sale. As time progresses, the value of the renovation tends to diminish on the scale of approximately 20% every three to five years. After you pass the ten-year mark, the value of the last renovation tends to drop dramatically and you may need to look at renovating again.