When you buy a home, you invest your money into an asset that you hope will slowly grow in value over time. While you can wait for capital growth to happen, if you want to speed up the process, an ideal way to do so is to renovate!
Whether you make cosmetic or structural changes, renovation is an effective solution to optimise the value of your home. The trick is to get the biggest bang for your buck! Here are some suggestions on how to do so.
1. Add a second storey extension
Second storey extensions are becoming an increasingly popular renovation for 21st-century homeowners. With our ever growing population records creating demand for more dwellings to be built, blocks of land are getting smaller by the day – particularly in the inner city suburbs. Building up is a great way to add more space to your home, and increase the value while doing so.
2. Add a granny flat
A home with a granny flat will be very appealing to potential buyers, as these stand-alone dwellings can be utilised in a variety of different ways – from housing the in-laws to being used as a home office. They could even be rented out to produce income now or in the future. Regarding investment, a granny flat is a unique point of difference and depending on how you kit it out, can add hundreds of thousands of dollars to your property.
3. Give your kitchen a make-over
One of the first things potential buyers look for these days is a modern kitchen, so if yours is outdated, remodelling might be a good idea. As a general rule of thumb, spending 2% of your current property value should be your goal. Look to install high-quality fixtures that won’t become outdated. Whatever you do, don’t go overboard with the unnecessary fittings, or you’ll just be over-capitalising.
4. Add an extra bedroom
This is more of a specific renovation but one that significantly improves your home’s functional space and gives you a big jump in capital value. On average, adding an extra bedroom will cost around $50-$80K but going from a three to four bedroom home can add a hefty $200-$400K to your proposed value. Just be careful not to compromise on other space such as living room, as a smaller lounge won’t add value.
5. Update the bathroom
Following the kitchen, the next most important room to focus on renovation wise is the bathroom. A modern bathroom will add significant value to your property. Check out some of the latest designs trending today and contact a professional to help with the restructuring or remodelling process.
Total Lifestyle Builders are professionals in home builds and renovations. Contact us if you have any questions regarding how to add value to your home.