There’s no doubt home renovations have become a bit of an obsession with Australians recently. Yet before you invest too heavily into home renovations for your property, it’s worth asking yourself, will these ”value adding” improvements really provide a return on investment and contribute to achieving your financial goals?
If you want to increase the value of your property and potentially its sale price, knowing where to spend your money is crucially important. And what’s more: knowing where NOT to spend your money is even more important.
In this news post, the Henderson Matusch team take a look at the five potential home renovation areas that may add little or no value to your property.
The five home renovation projects you should rethink
1. First impressions always count – don’t they?
Landscaping. Fencing. Pathways. Driveways. If you’re thinking that a fully concreted yard can be a major turn-off for buyers, remember that a “high maintenance” garden can have the same effect.
Instead, aim for the middle ground, with a low maintenance garden, some lawn, and easy access for rubbish removal. That way you’ll have a better chance of attracting a larger group of buyers.
2. A new bathroom
While it’s true that a beautifully renovated bathroom can help you make the sale, remember that you’ll typically make back only about half of what you spend on a bathroom renovation.
So instead of upgrading your bathroom just before you put your home on the market, why not add a brand new one a few years before you sell instead? That way, you’ll have time to enjoy the upgrade too!
3. High end fittings and fixtures
Unless you’re selling to a highly niche market, high end fixtures and fittings will not always give you a good return on investment. Instead, try and focus on using durable, good quality fittings that offer more all-round appeal to the majority of potential buyers.
4. A swimming pool
Everyone loves a swimming pool, right? Not necessarily!
While you may love having your own tropical pool retreat – and yes, some buyers may think of a pool as a ‘must-have’ too – for many other potential buyers, that big investment spells ‘hassle’, ‘danger’, or even worse ‘expensive to maintain’.
So if you don’t already have a pool, don’t think of it as an upgrade if you are intending to sell the property in the short term.
5. Anything you can’t see!
For many of your potential buyers, ‘out of sight, out of mind’ is the mantra!
That’s why investing in renovations such as ceiling insulation or ‘whirlybird’ extractor fans on the roof (even though they may increase the liveability of your home) may not boost your sale price. And unless your property is on a major highway or backs onto a train line, you should rethink the cost of investing in double glazing.
On the other hand, it is a good idea to make sure that items such as air conditioners and appliances are fully serviced and in good working order.
Talk to Henderson Matusch for advice on maximising the value of your assets
If you’re looking to add value to your home, it pays to invest in renovations that can provide a real return on your investment.
To talk to a Henderson Matusch financial expert about your needs, simply call us on (07) 3229 3688 or fill out the simple contact form here.