renovate

came across this on a fact sheet and thought i’d post it…very $erious dollars being spent according to this in Sydney and Melbourne renovations ( Hot Property factsheet)

What adds investment value

Renovations that add capital value usually include extra rooms that can be used either as a bedroom or study, and outdoor areas such as decks, and carports.
Extensions and granny flats can add up to 50 per cent to the value of a property because of the sense of space they create.
Swimming pools cost a lot to maintain but can add value if you are buying a long way from the coast and in a family-friendly environment.
The average spend for renovations is between $100,000-$150,000 although slightly higher in Sydney and Melbourne.
However, if your budget is no more than $5,000, you could consider replacing windows and doors, painting or landscaping – all of these are highly visible renovations and when done well can greatly add to the value of a property.
Prices of new kitchens and bathrooms start at around $10,000 and generally add about $15,000 to the resale value of your home.
If you are willing to spend up to $20,000, you could add a patio or refurbish the kitchen, bathroom or laundry.
Renovations over $20,000 could include extensions, a refurbishment throughout, or a granny flat.

Renovation strategies

By purchasing a property and renovating before you move in, you can find yourself sitting on an immediate capital gain. Not only that, the improvements you make will greatly enhance your lifestyle while you are living there.
If you renovate before you move in, allow for the cost of renovations when you plan your property finance package. By opting for a slightly larger mortgage, that is, one that is more than you need to borrow to buy the property, you will have the financial freedom to make upgrades and renovations.
When renovating, you should not only understand your own lifestyle, but also be sensitive to the types of housing in the area. If you renovate in a particular style that is not in keeping with the other houses in your area, you may find your property difficult to sell.
To avoid stress, it is advisable to engage an architect to renovate your house. Architects can manage the entire process. The Royal Australian Institute of Architects or the local council can provide you with a list of names.
Establish your budget and make sure you dont over-capitalise especially if you are looking to sell your property in the near future.
Most increase in investment value comes from using space. If your property is open to a view or back garden, which is light, airy and gives the feeling of substantial space, this will be the lasting impression.

If you have to borrow money to finance renovations, the cost of these funds will affect the profitability of the project. There are a variety of options for funding renovations and these include:
a second mortgage;
a home equity loan;
topping up your existing loan;
credit card.

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