Renovations are trendy and can render your investment much more profitable. However, home renovations can be tricky- unless you plan them right. Renovating your house isn’t always cheap and with a home loan to repay, it may not seem like a great idea to spend some more on home improvement. However, well planned and well executed renovations can actually return much more than what you spend by substantially adding to the value of the house.
Whether you are renovating to elevate your lifestyle or intend to put the property on the market soon, it is always helpful to consider improvements that will not only make your abode more comfortable, but also make it more lucrative for future buyers or tenants.
Here are some renovation ideas that will definitely add to the value of your house:
1. The first look – Whatever the philosophers may say, looks do matter – it is easy to fall for a tidy, trendy, bright and clean looking house than one with yellowed walls and overgrown hedges. Seasoned renovators advise simply cleaning up the outdoors, adding a fresh coat of paint and trimming the lawn can significantly add to your property’s worth.
2. The outdoors – Simply adding an outdoor area to the property can take its price a notch higher. An outdoor seating, a deck, a small patio or a terrace – it is all really trendy and can add much to your property’s value if built tastefully. The construction cost will vary depending on the design, the area and the execution (DIY or through a professional).
3. The kitchen – Revamping your kitchen is one of the biggest value additions you can do to your home. And it doesn’t have to cost much. By simply breaking the wall and creating an open kitchen, your home gets a whole new look. Alternately, you could work on the equipment or add a slab to make the kitchen look more interesting. However, only work on areas that really add value, it is easy to splurge in a market full of options.
4. The extras – Adding an extra room or an extra bathroom (or both) will add tremendously to your property’s value. When planning to add in the extras, research the market in your area and see what buyers are looking for. Do they prefer 2 bedrooms or 3 bedrooms? You can grab your free property report to know more about the properties in your area and their on-going rates.
An extra bathroom is a top concern for many buyers and tenants, and if you have space and money to build one, it can prove to be one of your best investments. You can also upgrade the existing works in your bathroom to change the way it looks – however, don’t spend 40,000 bucks on a tub when one in 10,000 bucks would suffice. It is easy to go overboard with expenses but when you are renovating for profit, it is best to stick to a budget.
5. The jing bang – We mean the works – the lighting, wiring, heating et al. Upgrading your windows and shades will make your house airy and welcome more sunlight, which Australians love. Improving the heating and insulation will make the home more comfortable and also help you save more on electricity bills in the future.
Renovations don’t really have to be expensive all the time. Small changes such as tidying up the lawn, adding a fresh coat of paint or throwing in a bright rug in the living room can make the house much more appealing to the prospective buyers or tenants.
But what about the funds?
Many Australians are taking up DIY renovation projects that are easy on the pocket and let you utilise your creativity as well. However, when dealing with electric and waterworks, it is safest to use an expert rather than relying on your own ingenuity. In-arguably, renovations cost money, but if you feel it is worth the bang, there are many options for home renovation loans:
1. Construction loan – While construction loans are usually available to those building their house from scratch, it is possible to borrow for renovation as well. In case you take a construction loan, you would draw down the money in installments helping you stay on budget.
2. Refinance – With currently low interest rates on offer, it makes sense to refinance to a lower interest rate and save more on your home loan. It is possible to increase the loan amount or ask for a line of credit loan that lets you withdraw small amounts as and when you require. In case you have been making additional repayments on your home loan, you can also redraw the additional amounts if you subscribed for the right features in your home loan in the first place.
3. Use equity – Use the equity you have built in your home loan by taking an equity loan to fund your renovation. This lets you improve your property without having to pay from your pocket as well as increases its worth instantly (if you got the renovations right, that is).
It is possible to build equity in your home quickly by following these easy tips
1. Credit Card – Many people use their credit card to pay for small renovations but in case you decide to use your credit card, remember to pay the bills in time lest you end up with high interest rate debt on your hands along with a blotch on your credit file.
2. As always, it is better to contact an expert. Get in touch with professional renovators to know what’s in vogue and not. Speaking to a mortgage broker will help you finance your planned renovations.
Your home is your most valuable asset. HashChing supports you in acquiring your dream spot by offering most competitive home loan deals. You can also speak to our mortgage brokers to have your queries answered, absolutely free of cost.
By Vidhu Bajaj