Adding Value To Property With Smart Renovations

Updated September 2020. 5 Minute Read. 

Our buyer’s agents give you the hot tips on buying property that you can add value to, it’s easier than you would expect.

Adding value to a property through improvement or building is a great way increase your capital growth, achieve higher rental yields and shorten time on market when leasing or selling.

Some improvements require a lot of skill, time and money, while others can be completed by property owners that love to give things ago.

Listen to our podcast on value added renovations. 

One of the most important factors with any renovation is profit. This is determined by adding more value to your property then your spending.

A perfect example:

A property owner can DIY there landscaping for a few thousand dollars over a few weekends. This would be a basic garden, though this process the yard has been decluttered and given a fresh new look improving any visitors first impression of your home.

Or you can get a landscaper to do the same work for you, they would add a little more bling because they are professionals. The total cost for the same work could be ten thousand dollars.

In this example, light landscaping in this suburb only really adds $5000 of value to the home, so it’s clear as to which of the two projects is a winner.

How do your work out how much value you are adding? 

Conducting a cost analysis: the best way to work this out is to compare sales of properties in the area which have had similar works completed, with properties without the renovation. Just make sure you are comparing apples with apples: land size, property size and age of home.

A great tool every real estate agent uses is RP Data, for a small fee you can find suburb reports with years with of comparable sales. 

Or you can speak to a local buyer’s agent who is a professional property buyer. They can give you an idea of what value renovation can add to a property.

Buying property that you can add value to.

  1. Granny flat or Adding a Unit.

If you have the space in your back yard with side access to the street, adding a granny flat or a new unit can add hundreds of thousands of dollars of equity to your property.

 

Many investors use this strategy to positively gear investments by doubling rental yields or reducing the debt when selling one of the properties.

This type of project can take a few years to complete and can cost up to a couple hundred thousand dollars. The profit can be far greater than the money spent so it wise to do the right cost analysis before attempting this kind of project.

 

Cost blow out warning: involving the local council, multiple trades and a drafts person is a complex project which could take more time and cost more than expected.

 


  1. Extend a garage or carport to make it a double or triple car space.

Many properties have the ability to extend the width of a car space to cater for an extra car park. Especially if you have the land available and you have a car port rather than a garage.

 

Usually, this type of renovation is cost effective, setting you back about $5000 to $8000 with great ability to add more value than the cost of implementation.

 

If you have an enclosed garage it could be a little more complex and costly as it would require plans and planning permits. This build is also more complex requiring more trades people. 

Cost blow out warning: involving the local council, multiple trades and a drafts person is a complex project which could take more time and cost more than expected.

 

Trades involved: Carport: Carpenter & Concreter. A brick garage adds a drafts person, brick layer and electrician. 

 


  1. Paint everything, interior and exterior.

Out of all possible renovations, painting gives you the best bang for your buck. It makes your house smell fresh and feel new, it covers up any movement cracks and potential years of neglect.

 

Did you know most of your exterior can be painted transforming the whole look of your home? Your roof, gutters, eves, window frames, doors and even your garage door can scrub

up like new with a good paint job.

 

Trades involved: DIY is recommended.

 


  1. Basic landscaping.

First impression matter when it comes to property. When you’re selling or leasing, property buyers and tenants only spend approximately 10 – 15 minutes in your home before making a purchasing decision. A good garden with plenty of green can really make visitors feel comfortable immediately, giving them a good impression.

 

The great part of landscaping is that it can be quite cost effective if you’re wise about what works needs to be done. You can get a great result for less than $1000.

 

  • Focus on cutting back anything that looks messy,
  • Mulch looks and smells great and is restively inexpensive.
  • Make things stand out with rocks and timber borders.
  • New trees are usually the most expensive part of landscaping, try save money on smaller trees or make a central feature out of a larger tree.

Trades involved: DIY is recommended.

  


  1. Neutral styling.Our Top 10 Tips On Adding Value To Property

If you are selling your home or leasing it, buyers and tenants alike want to picture their furniture in your home. This is an advanced stage of making a purchasing decision.

So make sure you don’t have anything too loud in your property’s styling to distract them. For instance: ultra-bright walls or room colour, big bold furniture, personal photos or bulky items like sporting memorabilia.

 

Neutral styling will make sure your property appeals to the masses ­– the secret key to any good leasing or selling campaign.

Trades involved: DIY.

 


  1. Open up the floor plan.

Homes built pre-nineteen nineties usually don’t have open plan areas. Open plan is the elimination of barriers such as walls and doors that traditionally separated distinct functional areas. You can usually combine the kitchen, living room, and dining room into a single great room quite easily.

It’s wise to consult a building inspector before you knock down any walls. They can tell you which walls are load bearing, pointing out which ones can come out and which ones need to stay.

 

Load bearing walls support your roof trusses, and removing them will compromise the engineered structure of your roof and could cause serious problems.

 

Usually, this type of project is cost effective and has great results.

 

Trades involved: plasterer, DIY painting, floor installer.

 

 


  1. De-clutter.

This one can sneak up on you when you have lived in a property for a number of years.

 

So, how do you effectively declutter? Reference for-sale properties in your area, see what their online pictures look like, what the property sellers have on their bench spaces and in the corners of the home. This will give you a few ideas on how to make your property presentable.

 

De-cluttering is the removal of any unnecessary items so that the property doesn’t look over crowded. 

De-cluttering is the first step in adding value to your home, if tenants and property buyers cannot see what your house looks like, it will increase the time it spendss on the market.

 

Trades involved: DIY.

 

 


  1. Improve Lighting.

Architects are taught to design properties with sunlight in mind. Natural light is linked to a person’s mood and the energy a property gives off, so it’s important to maximise this benefit.

 

Getting more light in could be as simple as minimising window coverings, adding a few sky lights or using reflective surfaces like mirrors.

 


  1. New floor coverings.

Some older homes have timber floors running through the property that are hidden by carpet. By removing the old floor coverings, you can achieve that new floor look with a simple sand and gloss for as little as $1000 for a small home.

 

Changing carpets can be a cost-effective way to really give your home that sharp look. Depending on how long you want to keep the house for will determine the cost and the quality of the carpet you go for.

 

 


  1. New window coverings.

A simple upgrade of window coverings can help you tick a few renovation boxes like letting more light in, partially decluttering and natural styling. Basic window covering can be relatively inexpensive and really change the look and feel of your home’s interior and exterior.

Conclusion.

A tasteful renovation can transform your property, increase your bottom line and give you a great story to tell. Many experienced renovators say it’s wise to keep things simple, plan, ask questions, and have some spare money to fix things if things get out of hand.

If you have any questions about renovating a property to maximise a sale price, speak to one of our experts.

You can book a complimentary, no-obligation strategy session to discuss your situation by filling in our appointment form.

Your Name *
Your Email *
Phone Number
Your Message

Google Rating
4.9