How to increase the value in your home
It's easy to add value to a home – just buy the most expensive furnishings you can find and move your house to the coastline. But ensuring your money is going to generate profit, is a whole other challenge.
There are many renovation tips that are passed around, such as aiming for an average of $2 value for every $1 spent and to not spend any more than 10% of the house's value in renovations. These are helpful in setting an initial budget, but every renovation costs something different and sometimes you'll only see gain in the long-run.
However, the key place to start is to identify what your budget is and allocate where you feel you can get the greatest bang for your buck.
Tips to help turn your place into the most competitive home on the street
If you have an old house, it's possible some rooms will be a poor size for their purpose. Bedrooms used to be small, and bathrooms used to be large. Consider swapping some rooms around. Obviously, changing your kitchen and bathroom fittings will cost a significant amount. But it's worth considering how this will affect the light and space of your key areas.
If you have more budget, you can consider removing walls to extend rooms completely. Tenants often demand homes with lots of space, so taking out walls and extending rooms will likely generate value. However, once a wall has been removed, it will be difficult to replace if your family situation changes or if you simply have a change of mind.
At many properties, plants equal privacy. If you are able to plant some shrubs or small trees in your front yard, you will see an increase in value for privacy-seekers.
However, if you're in no rush, consider planting seedlings at an even cheaper cost, and watch them grow into shrubs over time.
Of course, new technology is an easy way to quickly increase the value of your property. But this requires a thorough understanding of each room's purpose and whether the technology will provide much benefit.
Air-conditioning is great if you're able to get air flow and live in a warm climate. But if you have natural ventilation and small rooms, you may find an air conditioner won't be worth the cost of installation and the space it will take up.
Be aware though that technology goes out of date, and unless you're able to quickly sell your home and enjoy the capital gain, you might find yourself having to upgrade your technology again.
Nothing makes you feel more comfortable than being secure and protected while you sleep. Particularly if you have a young family, where security is non-negotiable.
Consider installing alarm systems and double locks on all entries. Some modern homes feature electronic keypads which allow you to set your own lock
Is your house likely to be sold to a family? You might want to consider noise proofing some elements. This will also help if you happen to live near a busy road, or in a flightpath.
Aside from trying to maximise the benefit from your money, there are lots of tricks you can use to reduce the cost of materials for renovations.
Picking up second-hand pavers and bricks will make a big difference to the total cost of renovating your yard or outdoor dining area. There are often pavers leftover from renovation jobs, and few homes have space for spare bricks, so you should be able to easily pick-up some second-hand.
It's commonly thought that the three areas which add the most value to a property are the kitchen, bathroom and front of the property. These areas will have the most potential for renovation. Consider allocating most of your renovation budget to these three areas.
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product