Thinking about putting your home up for sale in the near future? Perhaps your growing family needs a bigger house or you are relocating. Selling your home is a big decision. You might want to improve certain parts of the property, hence investing time and money on it, so that when the time comes for you to sell it, it will be worth more than when you bought it.
But not all upgrades and improvements will make your home more sellable.
For example, whilst a very elegant landscape or an infinity pool looks appealing, buyers who don’t like extra maintenance costs could see this as an inconvenience rather than a value-adding feature.
But before we get into it, it would be a great idea to first know how to determine the current value of your property.
Seeking help from a real estate agent or a professional appraiser is a good practice. But you can also do this yourself. The key is to use your good judgement: simply compare your property with other similar properties that just sold in the last six months in your local area.
You can visit CoreLogic to get an idea of properties sold in your suburb. Or you can also approach Shore Financial as we can help you find the value of your properties; we can order a free bank valuation or RP Data property report for you.
Now that that’s out of the way, here are the six ways to increase the value of your home for a good return on investment.
First impressions matter. Take a look at your property from the outside — does it look welcoming and structurally sound at first glance?
Whilst property experts would advise against extensive landscaping (think: garden waterfalls, Koi ponds, and gazebos), most homebuyers would want to see a property that looks beautiful and inviting on the outside than one that looks dull and unkempt.
A well-managed curb or a manicured garden can add up to around 7% to the overall value of your home. Here are some simple ideas to get started:
The kitchen is one of the high-use, high-traffic rooms in the house. This is why homebuyers rank the kitchen as one of the most important spaces in the house. They also consider kitchen upgrades as impactful on a home’s resale value. Improving your kitchen yields an average return of 66%.
Here are some inspirations for starters:
Turning your old and dingy basement into a studio that can host a visitor, serve as a home office, or accommodate carers can definitely add value to your home.
A granny flat’s rent, according to Domain, ranges from $200–$600 a week, which makes it a great idea for expanding one’s income stream. Agents found that properties with granny flats can sell for a significant premium.
To make your property more profitable, consider subdividing it into multiple residential units. But before you do so, you first have to do your due diligence. The first question to ask is, “Is your property eligible?”
You will also need to speak with the planning department in your area, get planning permission, and ask for policies and requirements involved in dividing a property to multiple units.
If you don’t have a car, it makes sense to transform your garage into another room. Depending on your needs and, of course, the garage space, you can convert it to a study, an entertainment room, or a bedroom.
The first step to changing this area into a liveable space is to apply and seek approval from your local council. You will also need to look into the following factors to see if they meet the Building Code of Australia’s requirements:
To most homebuyers, the bathroom is the dealbreaker. With a good bathroom remodel, you can recoup 50% of the cost you’ve put into the renovation project.
It’s also important that you consider your potential homebuyer. Some buyers might be okay with a bath, but there are some who like a spacious shower. So when it comes to renovating your bathroom, don’t put in a lot of investment.
Here are some high-value, cost-efficient upgrading ideas to start:
Whether you plan on selling your home or you simply want to improve its overall look, increasing your home’s value is always beneficial. It can give you a sense of satisfaction and enhance your way of living.
But it’s no secret — you will be shelling out funds to make this happen. The key is to know your home’s market value and ensure you don’t spend 10% of its market value so you can get maximum returns.
If you want to explore this opportunity this year, get in touch with a financial adviser at Shore Financial, who can help you build your wealth through property.