Renovating and the real costs
AT some point many homeowners decide to improve their property. This can be to enhance their lifestyle, improve the value of the property or just simply because their family has grown.
Here are some tips to get you started.If you improve your home at an amount much higher than the average property in your area there is a big chance it could become over captalised and harder to recoup your investment.
If you are working to a low budget consider re-painting or even landscaping. Replacing doors and windows are all highly visible renovations and when done add greatly to the value of the property.
If you are looking at renovating the wet areas in your home like the kitchen, bathroom or laundry you probably need to have a budget of around $20,000.
Prices of new kitchens and bathrooms start at around $10,000 and generally add about $15,000 to the resale of a home.
Renovations over $20,000 could include extensions, a refurbishment throughout, or even adding a granny flat.
Extensions can add up to 50 per cent to the value of a property because of the sense of space they create.
The bottom line is you should spend enough to get the house looking good, to make it work for you and your lifestyle, and to hopefully sell it one day at a profit.
The better you understand your motivations, the easier it is to work with a lender or mortgage broker to discuss your refinance options.