What’s the value of key home renovations?
Before your inner renovation warrior straps on a tool bag, it’s a good idea to take a look at the all-important numbers. Renovating a property can be hugely rewarding – both financially and personally. But one’s success depends on seeing the project goal posts before swinging a sledge hammer. Make sure you know much extra value you expect to make from your investment of cost and time. Profit always depends on a property’s asset type, style, location, age, condition and the appropriateness of its renovation works.
You is you can’t put a price on how much value one single item will make to a home’s profit. It’s a whole picture that creates profit, not single items. With that in mind we took a look at the value of some common home renovations.
What’s the value of repainting your home inside?
This depends entirely on the location and style of the property, property gains for interior painting will depend on the style and location of the property. For example painting an estate home found in outer suburbs and spending $3000-$5,000 will only (likely) gain $8,000-$10,000 value, while a period home situated in an inner-city suburb will need to budget $15,000 to paint (inside) however it could add upwards of $50,000 to its value.”
The very best return on investment for all the other rooms in the house (living, bedrooms, hall, etc) is paint. It’s cheap, absolutely transforms a place and always gives the biggest bang for the buck.
What’s the value of repainting your home outside?
Again, this question depends entirely on the streetscape of the property. What is the style of neighbouring housing? This will give you an idea of where to focus. When considering exterior paint, a freshly painted weatherboard will always outsell a brick home, however poorly presented and maintained weatherboard will struggle to compete. It comes down to street appeal; spending $10,000 could add $50,000 to $100,000 to the property’s value, provided the internals match (with the exterior impression).
How much value does a landscaped garden add?
Landscaping or a new garden will usually add value to a property, provided it is easy to maintain and suited to the buyer’s needs. You also need to factor in if you are selling a completed product or are the purchasers going to further renovate and extend.
If this is the case that garden has little to no value. However if you are selling a recently built or renovated home then, yes spending money on the garden to create a more usable and low maintenance outdoor area can add value to the property.
What’s the value of a kitchen renovation?
The kitchen is often the focal point for a home. So spending $15,000-$20,000 on a new kitchen will add not only value storage and functionality to a home but may also boost its value.
This should be the starting point with any renovation as it is usually the most expensive but also the most crucial part to any home.
Always look at the useable space, not only prep area but also distance to and from the hob, sink and fridge. Gain will be dependent on style and quality of the fittings and fixtures.
The experts say in most cases you can expect to add about $3 value for every $1 you spend on a kitchen.
How much value does a new bathroom add?
If your pipes don’t have to be moved and you can simply update tired fixtures, re-tile and/or repaint a dated bathroom, and change light fittings it is possible to spend under $10,000. This could lead to a valuation boost of $30,000 to $40,000. Again, the expert caution to assess your property type and potential buyer needs before you outlay a large amount of money.
Does a swimming pool add value to a home?
If you installed a swimming pool on a 600sqm block with a 250sqm house, and spent $50,000 in total, you could gain about $75,000 more home value in the right market.
What renovations can I achieve for $10,000?
We asked our experts to recommend the best renovations for $10,000. This is based on a 1960s-style brick home, where the owner has basic renovating skills.
Polish floorboards
Re-enamel and re-surface the bathroom tiles and tub
Update the tap ware
Repaint the interior
With a budget of $20,000, you could do as above plus:
Update kitchen with new flat packed installation and stainless steel appliances, tile splashbacks
Update switchboard
With a budget of $50,000, you could do also do the following (depending on layout and orientation of home):
Remove internal walls to create larger and functional open plan living with future scope to bi-fold doors
Assess adding an additional bathroom
Update light fittings and install new light fittings throughout home
As with any big project it’s important to seek the advice of experts before you start. Make sure you set a clear budget and stick to it to avoid overspending.