When renovating our properties there is always the risk of going overboard and investing more than we should.
Deciding to build new rooms or kitchens is a big decision, and just because we have enough funds to upgrade our homes, doesn’t mean that we necessarily should.
Here is a great quote from loansense.com.au that sums up nicely what I’m trying to say,
“According to, Archicentre, the Royal Australian Institute of Home Advisory Service, many homeowners are paying thousands of dollars only to devalue their homes. One of the ways they do this is by overcapitalizing which means to improve a property beyond its resale value. Unfortunately, there are many other factors involved which impact the value of your home in addition to your home itself. The neighbour’s houses and the general streetscape have considerable influence on the value of homes in the area. Before renovating it is important to consider the housing styles, demographics of your neighbourhood, and sale prices of other homes in the area that have recently sold. “
But while we know we don’t want to overcapitalise, how do we know which renovations we should go for?
Ask yourself questions like, what is the overall street appeal? What is the average price for your suburb or what have other similar homes sold for in the area? Also read a previous blog of mine about common renovating mistakes.
If you’re unsure about which renovations you should choose, I am more than happy to help, so if you own real estate in Bacchus Marsh leave me a comment or get in touch with me at Professionals Arbee Real Estate.