How can I renovate to get the greatest return?
Renovating a property can pay dividends, but you owe it to yourself and your wallet to make sure whatever projects you undertake offer a high return on investment, says First National Real Estate.
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A new coat of paint, built-in wardrobes and replacing carpet with hardwood floors may make a home more attractive to renters and buyers, but not all renovations are created equal.
Focus on kitchens and bathrooms
An open plan living room may set prospective buyers to salivating, but kitchens and bathrooms tend to be of greater importance. This means it can pay off big to update your kitchen and bathrooms with new fixtures and appliances.
Of course, completely redoing a kitchen or bathroom can be an expensive endeavour, so don’t gut a space if a simple facelift will do. Upgrading appliances, installing new lighting fixtures and refinishing surfaces can go a long way.
Avoid high-price items
A swimming pool may be a luxurious and sought-after amenity, but it very rarely equals a significant return on investment.
Firstly, installing a swimming pool will cost you plenty. Secondly, many home buyers are simply unwilling to pay the extra costs that come with maintaining a swimming pool. For every buyer a pool might attract, many more may be turned off by it.
Also keep in mind the safety issues and higher insurance premiums that often come with swimming pools.
Appeal to a wide variety
Renovations can be a great way to express your personal tastes and passions, but remember that renovations that maximise return should appeal to the largest number of potential renters and buyers possible.
This means avoiding design choices that may turn off most people even if they please you. Changes and styles that last and appeal to a wide variety of people are a much better investment than singular renovations that might age poorly.