How to benefit from renovating
Whether you're an investor or a regular home owner, it's likely that you are going to want to achieve a profit from selling a house that you own.
While this is usually helped by property values gradually increasing over time, there can also be a few things that you can do to your property to push the price up.
Renovations are a great way to add value to your home, as well as increase its livability. For instance, you could install a pool or spa, or alternatively, create a great nursery adjoined to the main bedroom.
It's all about identifying what buyers want, and honing in on these needs to provide them.
But in order for you to do this successfully, there are a few things that you need to keep in mind.
Here is a rundown of some tips that you should think about before determining if renovations are for you.
Finding what your property needs
If the home that you are going to sell is in need of some repair, then it may be a good time to look at replacing and renovating certain aspects of it, rather than just making a quick fix.
Some of the easiest and most popular projects that people undertake are painting walls, replacing floor coverings, and upgrading kitchens and bathrooms.
But it's a good idea to have a look through your home and identify areas that could be improved.
For example, if your house doesn't have much storage then you could add some extra wardrobes and shelves.
Maybe certain design features in your house have become quite dated, for example 70s style arched doorways.
Alternatively, you could be looking to cater to a specific market such as families or retired couples.
Is it worth it?
Keeping costs to a minimum is a huge factor to consider before starting renovations. You must consider the costs involved with building, planning and getting council approval to perform your alterations.
If the costs are quite high then this will eat up a lot of the profits that you make on the sale of your home.
At the same time, it's also important not to be too optimistic with your expectations for the sale price. It's highly beneficial at this stage to get your property professionally valued, and even speak to a real estate agent about how much you could sell your property before and after renovations are completed.
This will help you to get an idea of what you could achieve in the current real estate market, and will set you a limit on the extent and expenses of your renovations.