There is no denying well-planned and executed renovations can pay for themselves and earn home owners handsome rewards over and above their initial investment.
According to the Housing Industry of Australia, Australia’s renovation market is the strongest it’s been since 2010*.
The overall volume of renovations activity is anticipated to increase nationally from $31.38 billion in 2016 to $33.37 billion in 2019, an overall expansion of 6.3 per cent.
The question of whether a renovation adds value depends on a number of important factors as every property is different and knowing what adds or detracts from value is imperative if you are looking to make a profit in this competitive field.
An important distinction to make is that renovating to add value is very different from renovating for lifestyle and should be approached accordingly.
Not all renovators are aiming to onsell or cater to the buying public, so what suits their lifestyle here and now is what is most important.
If you are planning to renovate and want to maximise your chances of it being a profitable exercise here are REBAA’s top tips:
It goes without saying that creating extra floor space by extending the footprint of a property is by far the biggest drawcard for buyers to pay more. In some suburbs of our capital cities the inclusion of one extra bedroom can add anywhere between $80-200K on top of the price. Creating space for parking, especially within inner city areas, is also a boon for buyers for which they will happily pay more for.
2. KITCHENS AND BATHROOMS
Buyers know the value of these big-ticket rooms and will pay accordingly if they are done tastefully for the buying market. There are few home owners who enjoy going through the process of having no cooking or bathing facilities for weeks on end, so not having to plan and spend here is an area where renovators can profit.
Australians are predominantly an outdoors lot when it comes to entertaining and having an attractive, usable and well-designed al fresco area and/or garden can be a boon for value-adding. The creation of a level yard for children in a family-driven area, or the addition of a beautiful garden oasis can really add emotional value to a property. Improving outlook is also a winner here if the home looks out onto manicured greenery.
* HIA Renovations Roundup