Browse Forums Renovation + Home Improvement Re: Renovations add value (equal to their cost)? 2Apr 21, 2013 9:07 pm If done correctly and to a good standard, I would say yes. Exceptions are odd renovations, spending too much as a percentage of the house price, and if the new owners are likely to knock it down. Re: Renovations add value (equal to their cost)? 3Apr 21, 2013 9:20 pm First of all what is your definition of value? Value of increase aesthetics/ perceived equity of the house you plan on living in or a house you plan on buying, renovating then selling. If it's the first situation, then it comes to what ever you think is worth the cost. For the second situation, I am not an expert in this field but from what people in the game me there are 2 pointers: 1.) Do as much of the renovation yourself. This way you don't pay someone a margin to do the work. 2.) There is a lot you can do for a relatively small sum. Eg. Repaint a bathroom with white tile paint, rip up the carpet and expose the timber floorboards, get rid of that ugly cream brick fence etc. To put it in perspective, building a deck yourself costs $100/m2 but to get someone to build it for you $250-$400/m2. So for a 40m2 deck if built by a chippie, would a $16,000 investment generate a greater than $16,000 in return? I have also heard about a $50,000 bathroom make over directly generating $200,000 extra in a sale for a $1m plus house (it was due to the buyers really liking the bathroom). Re: Renovations add value (equal to their cost)? 4Apr 24, 2013 11:04 pm Yes and No! How long, and what colour is the piece of string you are talking about? But seriously, I am an ex-real estate agent and would tell people that were thinking of renovating their homes that the one single biggest bang for buck improvement was Painting. Paint is relatively cheap and gives the new "Fresh" look. Most of the time, it will add more value to the home than the cost of it to you. Most other improvement usually return you 50cents in the dollar spent. ie spend $10,000 on a pergola or ducted air-conditioned and add $5,000 to the value of the house. UNLESS, the improvement you do is the deal clincher to the buyer, but then its a long shot. (ie they must have ducted A/c or Pergola. Spend wisely, don't make any modifications just because you might think the new buyers would want it - e.g. add, shed or pergola. Its better to save the cash, sell it cheaper and get the Agent to let prospective buyer know it has potential to add the shed or pergola and then the new owners can add their style to it. eg gabled pergola, or flat roof, metal or timer etc. Cheers, Andrew Re: Renovations add value (equal to their cost)? 5Apr 25, 2013 2:00 am Paint is great, as well as current window treatments and floor coverings. Kitchens and bathrooms are usually not a bad idea as many will deem these too hard to do them selves. Recently moved to a 60's home in need of some improvement! http://s797.photobucket.com/user/leenii ... ch%20House Old house: http://s797.photobucket.com/albums/yy25 ... loo/House/ Re: Renovations add value (equal to their cost)? 7Apr 25, 2013 9:55 pm ^^ lots of reasons. Dont forget moving is a $50k excersise. and many people love thier location. Like all building, it depreciates. so you might spend $50k on a rennovation, and only make $30k in extra sale, but if you've used it for a few years and had things the way you wanted them, it makes all the difference. Recently moved to a 60's home in need of some improvement! http://s797.photobucket.com/user/leenii ... ch%20House Old house: http://s797.photobucket.com/albums/yy25 ... loo/House/ Re: Renovations add value (equal to their cost)? 8Apr 25, 2013 10:58 pm Agree 100% with Leni. If you love your location, neighbours and your allotment is big enough for an extension, then it really doesn't matter if you spend $100,000+ on an extension. Based on a home valued at $500,000 because it will cost you roughly $40,000-$50,000 to move into another home. (Based on selling a home worth $500,000 = Agent Selling fees of $10,000 and buying a house for $600,000 = Stamp duty and fees of approx. $30,000 in SA.) In my Opinion, it is OK to overcapitalise on a PPOR if you stay for a long time as you enjoy the benefits of the work you have added to the home. Alternatively, if it is for an investment, then you need to ensure you watch every cent and it should be treated more like a business. Good Luck in whatever path you end up choosing! Re: Renovations add value (equal to their cost)? 9Apr 27, 2013 12:25 pm http://discover.realestate.com.au/renov ... first-home There are other guides as well. There was a great guide in the Sydney Morning Herald that I cut out and kept about fifteen years ago that listed room by room what were the best but it is in storage at the moment. Stewie Re: Renovations add value (equal to their cost)? 10May 03, 2013 7:39 pm leni ^^ lots of reasons. Dont forget moving is a $50k excersise. and many people love thier location. Like all building, it depreciates. so you might spend $50k on a rennovation, and only make $30k in extra sale, but if you've used it for a few years and had things the way you wanted them, it makes all the difference. Leni, I had a look at your kitchen pics. It looks great. I love your chairs. Where did you get them or what brand/model are they? Thanks. Re: Renovations add value (equal to their cost)? 11May 03, 2013 10:38 pm I got them second hand from gumtree Recently moved to a 60's home in need of some improvement! http://s797.photobucket.com/user/leenii ... ch%20House Old house: http://s797.photobucket.com/albums/yy25 ... loo/House/ The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy… 2 4342 Approvals are covered in the cost we are paying to the pool company. The only thing stated in our home build contract for the additional cost is engineering support. … 3 7400 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27484 |