Renovating your home is a storied Australian tradition as old as the classic backyard barbeque – yet sometimes it doesn’t turn out quite as well as expected. Despite the potential pitfalls, many Australian’s still undertake such projects without considering the financial implications.
So, is installing that new kitchen or bathroom in your property a good idea before you sell? Here are a few handy tips to help you decide.
Why am I renovating?
This is the first question you should ask yourself before undertaking a renovation – if the answer is ‘I don’t know,’ then stop right there. Your renovations should always focus on improving your home’s resale value first and foremost, and may not be worth the cost if they don’t do so.
If your home’s not in need of modification or you’re unsure if it’s financially viable – staging may prove a more affordable method of increasing a properties resale value. All staging entails is hiring a professional, to dress your home up for sale making the property look as desirable as possible.
Which areas should I focus on?
Renovating your entire home might increase its value, but will it increase the amount of your mortgage repayments by more? Focusing on improving certain areas could net you a larger boost in sale price, while requiring a smaller investment. The top three things that people want in a home are open plan living areas, a butler’s pantry and natural light as found in a recent survey conducted by the Real Estate Buyers Agents Association of Australia. Instead of redoing your entire home consider focusing on improving these areas and you may see more return for less investment.
If you’re unsure of how to afford it – get in touch with our Fountain Finance team, as we have access to the right finance products, and have a wealth of experience helping borrowers just like you.