Renovations can add to your property’s value. Here’s how to get the best returns on your renovations.
Why you should renovate your property
Are you up for a new patio, a renovated kitchen, and a fresh look in the lounge? Renovating your home is not only a decorative task. Instead, renovating your home can:
- Extend the available living space: By renovating your home, you could open up smaller rooms to create larger living spaces.
- Improve the appearance: Renovating your home gives your rooms and living spaces a fresh new look. Enhancing the appearance of your property improves its value and potential selling price.
- Flip your home towards being more eco-friendly: The demand for eco-friendly living spaces continues to grow. Renovating your home to include eco-friendly systems and fittings makes it more attractive to the environmentally conscientious buyer.
- Enhance your property’s security: Improving your property’s security measures helps your family stay safe, while increasing your property value.
- Save you money: Rather than selling your home and spending oodles of money moving house, you could save money in the long run by renovating your property.
- Increase your property value: Consider property renovations an essential, when you’re looking to sell your home.
Improving your property value
You consider your home a place of rest. It’s where you’ve put down roots, settled in, and enjoy your family’s lifestyle. Taking a long-term view on your property, however, pays off. Don’t just think of your home as a place to rest and live; think of your home as a financial investment. By continuing to focus on your home as a financial investment, you’ll lean towards improving your property value. You’ll also always be one step ahead of the property market too. By angling your approach to your property as a financial investment, you’ll remain open to the idea of enhancing your home and improving your property value.
Best returns on renovation
When your property is listed for sale, recent renovations can help to set it apart in the property listings. Ensuring your renovated home attracts the highest possible market interest is important. Bear this big tip in mind: interested buyers are most likely to buy from interested homeowners. Get the best returns on your renovations by approaching your home as a financial investment.
Leave it to the professionals
To get the best returns on your renovations is, most often, don’t make them a DIY job. Hiring the right, qualified professionals to undertake renovations in your home is vital. Attempting to undertake renovations in a DIY fashion could cost you more in the long run, and ruin some of your home’s features and fittings. This could have a devastating effect on your property value. Simply put: don’t DIY your renovations.
Do your research
Ensure you get the best returns on your renovations by doing your research. Take some time to consider what kind of renovations would add true value to your home. For example, you may think that adding jacuzzi to your home will improve its value. That addition, however, may not attract as much interest from a buyer. Instead, a recently renovated kitchen with eco-friendly fittings may pique their interest more.
Secure your selling price
Renovating your home simply for the sake of improving your lifestyle may not pay off when you choose to sell your home. Before starting to renovate your home, assess the average selling price of a home in your neighbourhood. Thereafter, take into account your home’s current value. If the cost of your renovations and your home’s current value exceeds the average selling price of a home in your neighbourhood, your renovations might not improve your home’s comparative value. Make sure your selected renovations will improve your property’s selling price.
Set your budget
To ensure you get the best returns on your renovations, don’t overspend. It might seem difficult to set your budget and stick to it, especially when you become inspired by renovation opportunities. From a financial perspective, however, overshooting your renovation budget will mean you don’t get the best returns on your renovations. Set aside a specific budget that you’re willing to spend on your renovations, and stick to it. Don’t, however, assume that you don’t need an emergency buffer on your renovation budget. Make sure you set aside an extra 10 to 20 percent of your budget, in case of renovation emergencies.
Choose your renovations
It’s easy to get carried away with big ideas for your renovations, but a limited budget means you’ll need to choose carefully. Consider your options when renovating, to ensure you get the best returns on your renovations. If you need to choose between remodelling your bathroom or extending your outdoor entertainment area, consider what a potential buyer for your home would prefer. Book a consultation with a trusted property professional, to get an understanding of what property buyers in your suburb are looking for.
Which renovation is right?
Once you know which type of renovation is right for your property, you can consider your options. We recommend the following options for a typical suburban home in South Africa:
- Security measures: It’s always important to ensure your home is protected and your family stays safe. In South Africa’s suburbs, enhanced security measures are a must, and offer your property a distinct advantage on the property market.
- Automation of your fittings: If you’re still rolling up your garage door, or manually opening your driveway gates, prioritise these fittings on your renovation list. Automated fittings go a long way in securing your home and ensuring a higher selling price for your property.
- Kitchen renovation: South Africans are a social sort, and we spend a lot of time in our kitchens. A comfortable, contemporary, and well-fitted kitchen is particularly interesting to potential buyers, especially if they’re looking for a new family home.
- Living space renovation: Renovating your living room, enhancing your bedrooms, or expanding your property to include income generating opportunities could pay off when you consider selling your property. For example, renovating your home’s storage space and turning it into a modern, stand-alone apartment will increase your property’s value.