How to Add Value to Your Home – Six Renovation Tips That Will Help
Published 3:16 pm 31 Jan 2020
Are you wondering how to add value to your home? In this article, DG Institute founder Dominique Grubisa outlines some cost-effective improvements that you can make when renovating your property.
How to add value to your home on a budget?
- Create More Light and Space
- Update the Bathroom
- Update the Kitchen
- Replace the Windows
- Fixing the Decorating Defects
- Create a Home Office Space
As a property investor, your goal is to maximise the value of your property before you sell it.
There are several ways that you can do this. Buying for less than the current market value helps, as does buying in an area that’s primed for growth.
However, there are other things you can do to improve home value that are completely in your control.
We’re talking about upgrades. To increase home value quickly, you should consider renovating.
There are any number of improvements that you can make to increase value. The key is that the cost of the work cannot exceed the returns you expect to make up for it.
Let’s look at how to add value to your home with some simple renovations.
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Renovation #1 – Create More Light and Space
Imagine that you’re going to view a property. You step inside and head to the living room, only to be greeted by a dark space with no room to move around.
That first impression will colour the rest of the viewing and you’re unlikely to buy at the end of it.
Potential buyers love to see light and space in a property. Your goal is to create more open spaces that allow natural light from outside to wash over them.
For example, you may have two small sitting rooms that are connected to each other. Knocking down the wall between them creates a larger space.
Many also choose to use an open plan design to create more space in the home.
When it comes to adding light, you could consider building skylights in the ceiling. Of course, this only works if there’s nothing above the ceiling that would block light from getting through.
The key is that you make the property feel spacious and inviting the moment somebody steps inside. This creates a great first impression that can lead to a potential buyer making a higher offer.
Renovation #2 – Update the Bathroom
Does adding a new bathroom increase home value?
Of course it does. However, it’s also a costly endeavour that requires remodelling of the property and the installation of new plumbing.
If you don’t have the budget for that, updating the existing bathroom may be your next best bet.
The bathroom is a key selling point when it comes to a property, so any signs of dirt or grime will put people off. Outdated sinks and shower units put a damper on things, as do grimy or faded tiles.
Consider painting the walls a neutral shade and try to add light wherever you can. Examine the flooring and tiles for signs of grime and consider replacing them if you can’t clean them.
Finally, take a closer look at your bathroom units. Chips and cracks in these units are unhygienic and may put somebody off from making an offer.
Renovation #3 – Update the Kitchen
Much like with the bathroom, you have a choice between renovating and remodelling your kitchen. And generally speaking, it’s a full renovation that’s best for adding value to your house.
That’s according to homelight.com, which stated:
“Remodelers project that a kitchen upgrade will cost an average of $35,000, while only adding an average value increase of $20,000 to your home. That puts the ROI for the project at just 57%.”
“Complete kitchen renovations fare better, but only just with an ROI of 62%. The national average for a full kitchen renovation comes in at $65,000 with an estimated $40,000 recovered.”
Again, if you don’t have the money to afford either of these options, you will need to focus on small cosmetic renovations.
Replacing worn work surfaces and giving the kitchen a fresh coat of paint can help. So too can installing new taps and giving the entire space a deep clean.
The key here is that you create a clean and welcoming environment. Alongside the bathroom, the kitchen is one of your home’s biggest selling points. When figuring out how to raise the value of your home, it’s one of the key areas you should focus on.
Renovation #4 – Replace the Windows
There are all sorts of ways that the property’s windows could put somebody off from buying.
Obvious signs of wear and tear, such as chipped paint on the sills, are an issue. If the windows have broken seals or aren’t in keeping with the design of the house, that could also cause problems.
Replacing the windows with new ones will improve your home and add value. They improve the property’s curb appeal as well as ensure that the owners won’t have to deal with issues related to damp.
Renovation #5 – Fixing the Decorating Defects
A competent DIYer can make several little house improvements to increase value. Conduct a full sweep of the house and look for every small defect or annoyance that a potential buyer would notice. These may include the following:
- Faded or peeling paint
- Broken or sticky door latches
- Dripping taps that likely need new seals
- Signs of mould
- Cracks in your plasterwork
These types of issues are fairly common in older properties and they can make the house seem dated. Spending a few days fixing them up brings a fresher feel to the home that adds to its value.
Renovation #6 – Create a Home Office Space
According to an article in The Sydney Morning Herald, we’re seeing a rise in the number of people working from home:
“An analysis of Australian Bureau of Statistics data reveals the number of employed people who work from home has dramatically risen from 20 per cent of the entire labour force to 30 per cent in 15 years.”
This is a trend that’s likely to continue, especially as emerging technologies make remote working even easier.
That’s something that you could account for when looking into how to add value to your home. Having a home office space will appeal to any buyers who wish to work from home.
Plus, it’s something that you may be able to claim tax deductions on. As the ATO explained:
“If you’re an employee who regularly works from home, you may be able to claim a deduction for expenses relating to that work. These are generally home office running expenses, and phone and internet expenses.”
You may be able to use the potential for deductions as a way to improve the property’s value. But beyond that, simply having an office space will appeal to the 3.5 million Australians who work from home.
Home Improvements on a Budget
We’ve offered some ideas for how to add value to your home in this article. Each will help you to improve value without breaking the bank in the process. As importantly, these improvements are things that potential buyers look for.
Now, you need to examine your property to see what improvements you could make. In many cases, something as simple as a new coat of paint can breathe life into a property.
Lawyer, Asset Protection Specialist and Property Educator
Dominique Grubisa is a practising legal practitioner with over 22 years of legal and commercial experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author. You may contact Dominique at firstname.lastname@example.org
This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.