How much do hidden improvements such as rewiring, double glazing, heat pumps add to the value and profit?
It depends on a couple of things – are you selling? If so, then you will need to select a real estate agent who is aware of what these things are, how they affect the running cost of the house, (the income generated by feed-in tarriffs etc) and the REA points them out in the sales process ie do you have a green rating for the house (NABERS etc).?
Have you claimed all of your credits for the installation?
Is the house located in an area where people are aware of the value of these installations?
Does your target market value these items? (eg are you in an alpine area where it can clearly be demonstrated of the savings in running costs/heat loss)There is no house apparent at present, I am just wondering for future investment.
In the UK (where I am at present) similar options are necessary and do add value, or atleast do not allow the property to be down valued on survey.
I get the idea that rewires, insulation, heating etc. isn't taken as seriously in NZ and many investors look for visible improvements primarily.
People tend to buy emotionally. If it looks pretty they'll buy it.
That being said if it looks pretty but the building report comes back with defects negotiations will ensue.
Can't comment on double glazing, heat pump value as I'm in Sydney. It doesn't get that cold (except for THIS winter). LOL
The biggest add value will come from changes that purchasers can emotionally connect to. Generally speaking those types of changes, that they can't see, they won't connect to as much emotionally as a kitchen, bathroom, floor covering, first impression, outdoor living, etc.
If you are looking at renovating to resell repeatedly, my advice is to keep it simple, get to know the target maret of who you will be selling to and target your renovations towards meeting their needs and then throw in a couple of wow factors (that won't cost you much, but will leave a lasting impression with them).
All the best with the renos!
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