Wednesday, July 3, 2013

Should I Renovate or Not?

I found it interesting this morning to read that West Australians are the most "renovation-prone" in the country with 46% of homeowners planning a renovation. I've always wondered whether a renovation would be worth it in terms of improving the overall value of the house.

Apparently, the Commonwealth Bank revealed that less than half of client's projects went according to plan with many compromising or cutting corners. The average WA blowout in a home renovation project was $6000 which is double the national average with projects taking on average twice as long as anticipated.

RENOVATION DO'S AND DONT'S TO ADD VALUE

Do:
  • Research, research, research and seek professional advice.
  • Consider simple updates such as a coat of paint or a general tidying of house and garden.
  • Make a realistic budget you can stick to, identifying various costs from the outset.
  • Save costs by attempting safe jobs yourself.
  • Consider cost-effective updates to key areas such as front exterior, kitchen, bathroom and al fresco areas.
  • Buy a good property at the lower end of the suburbs’ price bracket
  • Aim to create a bigger, brighter and better space n Revamp windows, remove old drapes, update with blinds/ venetians
Don't:
  • Overcapitalise – make sure the cost of your renovation project doesn’t outweigh the value it will add to your property.
  • Paint or decorate to your own taste – go for neutral colours.
  • Forgo quality – a few quality key fittings can make a difference.
  • Forget to ask for detailed quotes and testimonials – find a professional who is suited to the renovations you want to do.
  • Forget street appeal – revamp the footpath with a pressure hose and a 4L can of paint for about $50.
  • Spend too much on things buyers can’t see.
  • Start without a complete cost analysis
Source: Commonwealth Bank, Mortgage Choice, Archicentre, Planit2D design app creator Peter Castagna, Propertyobserver.com.au, Renovaingforprofit.com.au. 

Read more from the original article here.

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