Compulsory lockdowns to help flatten the COVID-19 curve forced many Australians to spend a lot more time at home. They cooked in their own kitchens, they binge-watched their favorite shows on the telly and for some, all that downtime led to the realisation that their living spaces could benefit from a little renovating and updating.
Before homeowners in Australia renovate their living rooms or carve out a man cave in their spare rooms, they should consider first making home renovations that offer a high return on their investment.
Getting the best return on your investment
Not all property updates and upgrades add value to a home. It is not a wise financial move to pour thousands of dollars into a DIY renovation or professional contract job unless there is a good return on the investment.
As a top rule, the highest ROI renovations include those that add curb appeal to a property. In its annual cost vs. value report, Remodeling magazine suggests some of the most valuable renovations are those to a home’s exterior. Prioritising these exterior upgrades will make the property more aesthetically pleasing while increasing the home’s resale value. These upgrades include:
- Manufactured stone veneer
- Garage door replacement
- Siding replacement
- Window replacement (vinyl offers the most resale value)
- Door entry replacement
- Roof replacement
- Decks or other outdoor recreational areas
Interior updates to boost value
Beyond curb appeal, there are other interior upgrades and updates that can help boost a home’s resale value and livability factor.
While ranked as one of the most expensive projects to complete, attic bedrooms can yield a great return on the investment. Any time a property owner can add square footage to their living space, it is never a waste of money. The number of bedrooms in a home is a valuable resale metric. Property owners who choose to go this route should ensure they invest in top-quality insulation to bolster energy efficiency, which also is in high demand in Australian properties.
A kitchen can make or break a home’s appeal to prospective buyers. This home renovation project can be a bit pricey, but on average, homeowners can also expect a tidy return on their investment. The goal of kitchen renovations is to practice some restraint. Spending $50,000 to renovate a kitchen in a home valued at $200,000 is not a wise investment. Some homeowners go for broke when renovating their kitchens, adding expensive appliances. While they may bring the homeowner enjoyment, they are not guaranteed to recoup the cost when selling their home. For some homes, a simple facelift involving the refinishing of surfaces and upgrading appliances will suffice.
Bathroom remodels also yield a high return on investment. Space permitting, transforming a regular bathroom into a master bathroom is the way to go. Most homebuyers are looking for master baths that boast two sinks, custom showers, and efficient lighting. Remember to use neutral colours and finishes to keep the remodel from looking outdated too quickly.
Having a vision and desire to upgrade a home’s assets will not get a property owner far without the funding to make those dreams a reality. As part of its ongoing efforts to boost the post-COVID economy, the federal government is offering cash grants for home renovations.
Our expert team of property investment brokers can help determine the best financial options for clients interested in updating the value of their homes. We can help find a solution to fit your budget — whether it is via renovations, refinancing, or a combination of the two. Upgrade your home wisely — phone us on 1300 657 132 or enquire online to schedule a no-obligation consultation.