Introduction
Home renovations make your property more appealing, functional, and liveable. They can also boost your home’s market value if you’re planning to sell. At the same time, you need to consider costs and returns. Deciding on smarter renovations is important because you wouldn’t want to overspend on renovations that don’t generate a decent return when it comes time to sell. Here are the eight best renovation ideas for increasing the value of your property and some useful pointers on how to avoid spending too much.
Smart renovation ideas that increase the value of your home
So what are the smartest renovation projects you should consider? From kitchens to flooring, these ideas give you the best chance of increasing the value of your home.
1. Kitchen renovation
The kitchen is one of the most used areas of the home, so it’s no wonder kitchen updates can have such a profound effect on resale value. Removing walls to create open-plan kitchens, adding islands, and increasing storage are all ways to make your kitchen more modern and functional. Also think about updating cabinetry, sinks, appliances, benchtops, or splashbacks. With a kitchen makeover, you could recover as much as 52% of your investment when you sell.
2. Bathroom renovation
Updated bathrooms are a perennial favourite of buyers. Cost-effective upgrades include plumbing fixtures, new surfaces, and double vanities. New baths and showers and refreshed flooring can also be high-impact updates. Add more storage and new lighting and or even luxurious yet affordable features like heated towel bars and radiant heat flooring.
3. Curb appeal
Make a great first impression by improving your home’s curb appeal. Add lighting, clean up your garden, and maintain your lawn. Update fencing or repaint it, and clear your pathways. Having your roof and exterior walls professionally cleaned could also give you a good return on investment.
4. Open up the indoors to the outdoors
Adding more natural light and outdoor views could have a huge impact on the appeal of your property. Adding a sunroom, for example, lets you enjoy fresh air, plenty of sunshine, and a dose of the outdoors without complete exposure to the elements. However, you can also bring more natural light into your existing spaces with simple additions like retractable fly screens. These are discrete and inconspicuous, and they can be installed on doors and windows to keep out the insects and allow in natural light and enjoyment of outdoor views.
5. Paint job
Painting your house’s exterior and interiors is another option that’s likely to give you an excellent return on a relatively small investment. For a sum in the lower thousands to hire a professional painter, you’re likely to significantly increase both the curb appeal and refresh the look of your interiors.
6. Upgrade your floors
Switching old carpeting for hardwood, tiles, or laminate flooring is a proven way to boost your property’s resale value. Buyers prefer these options over carpeting. Hardwood can also offer an excellent bang for your buck in terms of resale returns, but that’s usually only if your property is at the most expensive end of the market. For the average property, laminate flooring offers good returns as a durable, economical, and low-maintenance choice.
7. Upgrade your lighting fixtures
Updating your lighting fixtures to create ambiance and well-lit spaces is another cost-effective way to make your property more inviting and functional. Choose appropriate designs, such as statement chandeliers for dining spaces or subtle recessed ceiling lights for corridors and living areas.
8. Replace your windows and doors
Inexpensive renovations like replacing your windows and doors can make your home look and feel refreshed. You can change the design of your doors and windows for a new look. Updates like double-glazed glass windows can be a selling point by providing better insulation and hence enhancing temperature control throughout the seasons. In addition to energy savings, they could improve noise insulation.
Home renovation tip: avoid overcapitalising
According to the latest ABS figures, Australians spent $930.5 million on alterations and additions to residential building during March 2022. During the COVID-19 pandemic, Australia increased renovation spending by 10%. 2021 spending was up by 22% from 2020. Some of this came from money saved on tourism, eating out, and other retail spending during lockdowns, and the government’s Federal HomeBuilder scheme might have also had an effect. Over the long term, renovators have been increasing their spending, with 2020 double what it was in 2010. Aussies are eager to invest in renovations, but this needs to be balanced against overcapitalisation considerations.
Overcapitalisation on property renovation means renovations that cost far more than the value they add to your property, especially when it comes to reselling. In other words, if you’re renovating with achieving a better sale price in mind, you’ll want to invest in renovations that see you recoup a good percentage when you sell. For example, you might have spent $150K on renovations and then decided to sell, only to find these renovations added only around $75K to your resale value.
How much should you spend on renovation to avoid overcapitalising?
So how much should you be spending on renovations to avoid overcapitalising? Before jumping into a major renovation project such as a kitchen or bathroom revamp, do the maths. Your home’s current market value is a key reference point for working out what’s a sensible amount to spend.
- Structural changes – A complete structural renovation might reasonably cost you up to 40% of the current value of your home. This means if your house is worth $1 million, you might be spending up to 400K for things like updating the roof and floor plan, knocking down and building new walls, or adding new doors and windows.
- Cosmetic changes – Cosmetic renovations should cost far less than structural ones. You might be spending anywhere from 1% to 5% of the current value of your property, for things like repainting, changing fixtures and fittings, and adding new cabinetry.
Conclusion
Kitchen, bathroom, flooring, lighting, and curb-appeal updates are some of the smartest renovations you can undertake to boost your resale value. Other upgrades like repainting, opening up to the outdoors, and updating windows and doors are also high-impact improvements that give you good returns. Renovations can boost your home’s liveability and resale value, but you need to be smart about how you’re spending your money so you can avoid overcapitalisation. It’s a good idea to get a professional valuation, consider what buyers will pay more for, and work out a clear budget if you’re planning to undertake major renovations, especially structural ones.
Artilux has been a leading provider of high-quality retractable fly screens for over 30 years. If you’re looking for the best screens for your home renovation project, don’t hesitate to contact us for a free on-site consultation or with any questions you have about our products.
