By Donna Webeck
New Zealand is a nation of renovators. Whether you have just bought a home which requires some modernisation, or you are planning to sell and want to secure the best possible result, it’s important to keep in mind a few vital points when adding value to your property.
What is overcapitalisation?
Overcapitalising occurs when the cost of renovations outweighs how much value it will add to a property. It’s also a very easy mistake to make and the biggest risk renovators face when tackling a home makeover. This is why having a thorough plan and a strict budget in place before your renovations begin is critical.
You should also ask yourself whether you are renovating to live in the property or sell for a profit and consider what is happening in your local real estate market. Most importantly though, remember, any money you invest into your home has to work for you, not against you. So, as a good rule of thumb, keep the cost of your renovations to less than 10% of the value of your home.
How can I add value to my property without spending too much money?
It pays to be practical when considering what to invest your renovation budget into. A fresh coat of paint to the interiors and exteriors will give your home an instant facelift and ensure your curb appeal is on point. Clear the garden of weeds or overgrown shrubs and plants, to make sure you give off a great first impression.
There are also other simple ways to add value without breaking the bank. If you update your home’s light fittings, window coverings, tapware and ensure the carpet has a thorough clean, it can provide a maximum impact on a minimal budget.
“Living areas are easier to modernise and are cost-effective, particularly if you leave the walls where they are,” Refresh renovation specialist Rob McEwan suggests. “Adding a bedroom can get a better return on the investment as well, however, this will involve a full design and council consent process.”
Are kitchen and bathroom renovations the best place to invest in when you want to add value to your property?
If your renovation plans are geared towards selling, it’s big-ticket items – bathrooms and kitchens - which will add the most value to your property.
“Bathrooms and kitchens are the focal points for most buyers,” Rob confirms. “These tend to be the more expensive rooms to renovate however due to the plumbing and electrical work and fittings.”
If your renovation requirements are basic, it’s best to budget for under $20,000 for a new kitchen, however, if your finances can stretch to a mid-range kitchen, expect to pay $30,000 to $35,000. A basic bathroom renovation is likely to cost in the region of $15,000 - $20,000, while renovation in the mid-range budget will see you spending between $20,000 and $35,000. Why not head to our Projects Estimates page to find out more?
How important are the front and backyard when adding value?
It’s no secret first impressions count – and if you’re renovating to sell, then you need to ensure you are putting your best foot forward from the moment potential buyers arrive. Whether it’s a cute picket fence or you render of a tired brick home, this will help make your home memorable and valuable.
For more information on how you can add value to your property – either for profit or comfort – be sure to contact your local New Zealand Refresh Renovation expert today!
All Refresh Renovations franchises are independently owned and operated.