Any type of renovation can be risky, especially if it hasn’t been thought through well. Many people assume that property renovations will increase their house value, but this isn’t always true.
Upgrading your kitchen or adding an additional bathroom are obvious winners when it comes to value adding, but we have compiled a list of renovations that “may not add value”.
The percentage of Australian’s looking for a home with a pool when they buy is only 11.3% because while people like the idea of a pool, they are not keen to put the effort into maintaining or cleaning it. This is a small percentage of buyers or renters you would be appealing to.
When you install a pool there are a lot of extra costs that add up, including fencing, pool cover, cleaner, lighting, heating and maintenance. On average a pool will cost $30,000 or more to install. Additionally, you will need to decking around the pool which will also require set up costs and ongoing maintenance, unless you choose an easy-to-maintain composite decking.
When selling, finding the right buyer to pay what you spent on the pool won’t be easy and are likely to reduce the costs in a bid to sell the home.
Landlords may steer away from swimming pools because of safety concerns and relying on tenants to keep it clean and well maintained.
While it is well known that the right landscaping provides street appeal to the potential buyer, a complicated or ‘over the top’ design may deter them.
12.7% of added value to the home can be achieved with the right landscaping. Leaving room for trees and shrubs to grow so the garden doesn’t look overcrowded will be noticed by potential buyers, especially if they enjoy gardening. Planting a garden to suit your climate is important so any research that can be done before landscaping is your best choice.
A deck or patio such as composite decking has the potential to increase property value because it provides an outdoor living space for the whole year.
Simply, not everyone likes to garden. So, having an easy to maintain and neat garden will be more appealing to buyers overall meaning they don’t fear being in the garden weeding every weekend.
It isn’t recommended spending over 5% of the purchase price of your home on renovations, otherwise you are likely to over capitalise. Realestate.com.au advise that a well planned out upgrade can add value of up to 10% of you home.
It is simply about choosing the right areas to renovate. For example, upgrading amenities such as air-conditioning or plumbing while might be needed, potential buyers don’t want to pay extra for it.
In older houses choosing the right room is essential, especially if you only plan to renovate one or two areas. The remainder of the house may look drab after two rooms are renovated so making the right choice is essential. The most popular choices generally are kitchen and bathroom because buyers are often motivated by how they look. However, be mindful not to spend a lot because you want to make a return on the renovations.
To keep the changes to your home cohesive it is beneficial to have a certain buyer in mind. The way to give yourself the best chance of selling your home is to keep changes neutral as it will appeal to a wider market.