These days there are tons of home improvement or reality renovation shows, home magazines and gorgeous social media images.
They are inundated with beautiful spaces and inspirational homes, that make you salivate, dreaming of walk in closets that are the size of a main bedroom.
Australians are renovating more than ever before. 2018 was the record year for renovations in Australia.
If you’ve ever been to Bunnings on a sunny Saturday or Sunday morning then you get my drift. There are trolleys being pushed in all directions full of paint, timber, tiles, plants and tools with the odd toddler pushing her tiny shopping cart with a paint brush in there.
So, why renovate?
No matter what you plan on using your home for - renting it, selling it or living in it - buying a property is one of the most popular forms of investment, in Australia.
You may want to increase your property potential for one of the following reasons
- To make the space you live in more beautiful and functional for you and your family
- To get the most value out of your property, to make profit from it. To sell or for equity.
- To increase your rental yield, in your investment property.
Get proper clarity around why you want to renovate. What will the outcome achieve for you? This will mean you have an end goal and know what it looks like.
WHAT NOT to do - You don’t want to overcapitalise (when you spend more on a house than what you can sell it for) Have a clear understanding of what you paid for your property, what funds or budget you have to work with and what the potential sale price or value of the property could be.
Then from here, work out what work will need to be done to reach your property’s best potential.
Have a good plan in place.
Start with knowing what your property's worth is right now.
Tip: If you're unsure of what your property is currently worth as is, then get a bank valuation and a real estate valuation. Compare the two, they may be totally different in their valuation reports. Always research the properties in your area which have been renovated and un-renovated, on the market and that have sold.
Do your own comparings. See what the highest priced properties in your area sold for and why.
Ask your local real estate agent (one that’s recommended) what their opinion is on bringing your property's value to the best potential.
Why get the most value out of your house?
Equity is the difference between the value of your home and how much you owe on it.
Equity is one of the most powerful tools you have to start building a solid property portfolio.
Do enough research of your own, surround yourself with expert advice and have an understanding of the work needed and the costs associated to the work to be assigned.
A well-planned and successful renovation can add 10% - 30% and more to the value of your home, depending on several factors you need to consider such as the present property market, property location, size, the overall renovation work and quality and the sales campaign in getting the best price possible.
Set a proper budget by doing some ground work. Not setting a fixed budget can mean you will overspend and potentially not have enough funds to finish your project.
Should you renovate?
Consider the Pros and Cons in renovating.
Increase property equity
Increase rental yield in investment property
Make the space you live in more beautiful, inspirational and functional
Learning how to DIY is satisfying and will save you money
Renovating can save you the costs of moving, along with stamp duty, conveyancer, agent fees etc if you are happy where you are at and want to increase your equity
Renovating can add stress and strain to you and your family
You may need to move out when works are being completed
If you’re not careful you may overspend and overcapitalise
What sort of costs am I looking at?
The KITCHEN is the hub of the home and can add considerable value to your home.
The price of a new kitchen can vary dramatically, depending on what scale and budget you have to work with.
Lower - end Budget kitchens start from about $5,000 for just a cosmetic face lift and can go up to $25,000
Mid-range kitchens range between $20,000 and $40,000
High end kitchens start at $45,000 and can go up to $100,000 or more
Image: Harvey Norman
The BATHROOM is another space you may need to allocate a larger percentage of your budget on. In 2018, the Housing Industry Association (HIA) found that the average value for a bathroom renovation was $17,522.
In a small bathroom you may be able to spend $5000 on a cosmetic reno, while a major renovation cost $25,000 or more.
Other rooms such as the laundry, the bedrooms, dining area and outdoor area is something you also need to take into consideration and allow money and time for.
There are DIY projects you can do yourself, such as demolishing, painting, sanding, tiling, landscaping and the decorating part. You just need to be confident, enjoy using tools, and the patience to give things a go.
The size of your renovation will hugely depend on the amount of work needed, your budget, your end intention and your time.
Image: Best Design Ideas
Try to be realistic about DIY improvements. Don’t do anything yourself that requires a qualified and skilled tradesperson to complete. Such as Plumbing or Electrical work.
Choose your projects carefully by knowing your risks and capabilities. Do not take on more than you can handle, especially when you are on a tight schedule.
Make sure you consider all the factors I have mentioned.
Take all factors into consideration and make your decisions from there.
Do you own research and surround yourself with expert advice.
Create a proper plan which will minimise risk.
To get some help with implementing a proper renovation plan please contact The Renovate Avenue on [email protected] or go to The DIY Renovation Academy page and enrol into this course available to you to learn to succeed in your own renovations.
Course enrolment here