Today, the desire to add value to our own homes continues. There’s definitely a group of buyers who want a ready-to-move-into property, but the bulk of us love the challenge of adding our own style. It can be great fun.
If renovating is on the agenda, I’d like to offer some tips. First of all, whether you’re renovating an investment property or your own home, there are four key things to keep in mind.
- Talk to your council. Structural renovations may require a DA approval, so make your council your first port of call.
- Talk to Fair Trading. Ask your state’s Office of Fair Trading about home warranty insurance.
In NSW, renovations exceeding $12,000 must be insured. Your builder can organise this for you. Keep the documentation, especially if you’re selling soon after the renovations are complete, and always use only licensed tradespeople.
- Don’t over-capitalise. Don’t spend more than you have to, but don’t skimp on the important stuff. It’s a fine line so get some advice from as many experts as you can (further details on this below).
- Keep re-sale in mind. It’s rare for today’s home owners to spend their whole lives in one property. At some point you’re likely to sell, so don’t make renovation decisions that will reduce the value of your property (seek an agent’s advice on this).
Now for the details. My renovating tips for investors and owner-occupiers differs slightly. I’ll spend most of my time in this article talking about owner-occupiers, so let me cover off the investment angle first.
Renovating investment properties
I generally advise investors looking for long term capital gain and rental yields to avoid properties requiring a total renovation, as this will increase your risks and acquisition costs. You’ll have pay for designers, builders and materials and you won’t have any rent coming in while the work is carried out. If you have to spend more than 5% of the purchase price to get the property into a rentable state, I’d probably look elsewhere.
Fresh paint and carpet will make a huge difference. You can smarten up kitchens with new bench tops and appliances, and in bathrooms, a new shower screen, vanity and re-enameled bathtub will do wonders.
You want the property to look clean, modern and appealing to tenants. Keep your décor simple and neutral.
For owner-occupiers, my tips differ slightly. Here are the major things to think about:
Renovating instead of moving
Renovating is a good alternative to moving house. You may be surprised how much space you can add to your existing home by knocking out a few walls, extending the rear of the house, or maybe building a second storey.
It’s your place
When renovating your own home, you should definitely be guided by what you like, but keep re-sale in the back of your mind.
I’d strongly recommend talking to an architect about structural changes and an interior designer regarding the finer points. After that, talk to a local agent. Ask them to come to your property and give you their advice on what would add or reduce your home’s value. A good agent will happily do this for you.
Structural renovations
If you’re looking at structural renovations, I’d suggest making living, dining and kitchen areas open plan as this is the popular in today’s marketplace.
Creating a second living room will add a great deal of value and alfresco entertaining spaces are extremely important. If you have the room to build a nice big entertainers’ deck, go for it.
Gardens
Your backyard is one of your property’s most important features. It should be a tranquil space with low maintenance plants and grassy space for the kids to play.
If you’re living in an apartment, create a balcony garden. You want the space to be neat, tidy and inviting – a haven for relaxation and alfresco dining.
With backyards and balcony gardens, less is always more. Visit your local nursery for guidance, or seek an on-site opinion from a landscaping or gardening company.
Colours
A neutral palette with soft coffee colours, beige, whites and off-whites will add a distinct contemporary feel to your home. They’re great base colours and are always best when it comes to re-sale as they provide a modern blank canvas for buyers.
Feel free to show your personality with a few bright feature walls – you can always paint over dramatic colours when it comes time to sell.
Kitchens and bathrooms
Kitchen and bathroom renovations will cost the most, but add the greatest value to your property.
The recent evolution of materials such as sinks, tap ware, bathtubs and kitchen appliances has been incredible. Suddenly, ‘label’ kitchen appliances like Miele are becoming the norm, as are frameless glass showers and large designer bench-top sinks in bathrooms. And let’s not forget the rise of the Caesarstone bench top.
Have some fun with these rooms. You don’t want to overcapitalize, but high quality fixtures and fittings will definitely add style and will be appreciated by future buyers.
Quick tips for the kitchen
- If you can afford the ‘label’ appliances, go for it.
- Go for stainless steel appliances over white plastic.
- CaesarStone bench tops and glass splashbacks look fantastic.
- Maximise storage space – extend your cupboards to the ceiling etc.
Quick tips for the bathroom
- Look at ceramic tiles with marble or travertine effects – ceramic is the cheaper option, but can often look just as good.
- Use the money you saved on the tiles to buy some stylish tapware.
- Go for a frameless glass shower and CaesarStone vanity.
- Keep the bathtub separate – showers over baths are less desirable.
- Maximise storage space.
You can learn a lot by watching TV shows on home renovations, or reading home decorating magazines – there are hundreds to choose from! Set a budget and start making plans today. Good luck and have fun.
For more information and advice, please visit www.mcgrath.com.au
More of John McGrath’s Rescu. blogs:
1. The pros and cons of “buying off the plan”
2. Renting vs. buying a home: John gives his expert opinion on the better option
3. John’s Top 15 tips for finding a good property manager
image credit: renvoating for resale via theblockshop.com.au
