A renovation is a great way to upgrade your property’s aesthetic to fit your current lifestyle better. This is also a good time (or excuse!) to include new technologies in your modern home to make daily living more convenient and automated. More importantly, renovating your property is a surefire way to increase its value so when it’s time to put it on the market to be sold or leased, you’ll be able to maximise your profit. But how do you know which home renovations that add value are actually worth it?
How can a renovation improve the value of a home?
There are a number of factors that affect a property’s value. These include the location, the demand for properties like yours, lot and floor measurements, age, and other internal and external characteristics. Among these factors, only the property’s variable characteristics are something that you can improve on, by way of a renovation, to make it more attractive in the market.
A major renovation is estimated to increase the market value of your home by up to 10%, particularly if you keep the property for a minimum of 5 years.
How can you achieve this?
It’s important to remember why you’re renovating your property and to focus on that reason when setting your renovation goals. If you’re reading this, it’s probably to increase the value of your property because you plan to sell it or rent it out. Therefore, you need to carefully plan the renovation so that your property will appeal to potential buyers or renters. Avoid making changes according to your liking. Instead, renovate according to the demand of property searchers.
One of the best ways to start is by reconfiguring the layout of the house. If you have an office space, consider converting this to another bedroom. Most home buyers want enough space for their whole family. Improving your property’s condition is another fool-proof renovation plan to increase its market value. Fix everything that isn’t working as they are supposed to: leaky kitchen plumbing, clogged drainages, faulty switches, and broken floor tiles are just some of the things you should cover first.
Areas that won’t improve property value
Having a strong strategy when renovating your property will save you time and money. Keep in mind that not all types of renovation will increase your property value. So, forget about renovating the following areas, because it won’t do much to boost your asking price:
- In-ground pool installation – A swimming pool is fun and a good amenity to have on your property, but not all home buyers think the same. Some even think of it as a liability due to the utility and maintenance costs. It can also be seen as a risk for families with small children.
- Converting a living space into an office or library – Bedrooms are far more important than any of the two, so it’s always a good idea to add more of them. Creating another bedroom can give up to a 46% return on your investment.
- Creating a sunroom – A sunroom sounds great and all, but most property buyers tend to steer clear of it as it can make managing the room temperature more difficult.
Areas of home renovations that add value
On the other hand, you should focus on these home renovations that add value, such as:
- Kitchen – A remodelled kitchen, right away, can give back 60% – 120% of your investment. And everybody likes to cook, or at least try to cook, so a modern kitchen is always attractive in a property.
- New Bathroom – Much like the number of bedrooms, home buyers and renters are also concerned about how many bathrooms a property has. Converting the extra spaces of your house into new bathrooms will help.
- Exterior Siding Replacement – Exterior renovations can also increase your property value. Replacing the exterior siding is always worth the investment.
- A larger garage – Vehicles are a big investment for many people. They won’t ditch their cars just because of lack of parking space. Building a large garage for at least two cars, therefore, is a very ideal renovation plan.
- Walk-in closets – Any extra space will increase your property’s resale value. If you can renovate a bedroom to have an en-suite close, then do it as well.
Property renovation with Renovare
Other home renovations that add value are outdoor spaces like a porch, balcony or patio. Repainting will also be very helpful in improving your property’s internal and external features. All of these will help increase your property value. However, a home renovation can be a tedious task, especially if it’s not your area of expertise or you’re no good on the tools.
If you’re looking for other home renovations that add value to your property, speak to Renovare Group today! No matter your project, Renovare has a great team of builder renovators ready to help! Call us on 1300 049 516 or get in touch online!