Renovating an entire house can be expensive. But the good news is, you don’t need to renovate every room to make a profit.
So if you want to create maximum profit with minimal funds, which area is the best to renovate?
First impression is everything
According to Cherie Barber, founder of Renovating for Profit, first impressions are crucial.
“If you’re selling and people aren’t drawn to the property from the front façade it might not entice them enough to actually go into the interior of the property,” says Barber.
“So street impression is really important.”
One of the great things about fixing up the front area is that it doesn’t have to cost a fortune. Depending on how much money you have to spare, you can give the area a mini makeover using a few thousand dollars or just a few hundred.
If you are on a tight budget, some improvements you can make include:
• Prune the gardens
• Add fresh mulch
• Mow the lawn and tidy the edges
• Pressure clean the driveway and walls
• Paint the fence or front door
If your budget is a little bigger, you could consider:
• Spray new colour on roof (average cost for a 3-4 bedroom home: $1,500-$4,500)
• Paint the front of the house
• Render the front walls (average $30m2 to $50m2 for a single storey home)
• Replace landscape with new flowers/trees
The kitchen is a close second
The kitchen is one of the best rooms to renovate and for good reason. This area is usually the centre of the home where everyone gathers and is a high traffic area.
Although it may cost more to renovate that the front yard, many renovators see a larger return of profit when they give the kitchen a makeover.
According to expert renovator Tom Hall, the kitchen is the way to go if you want to see a return.
“You will pay $15K-$20K for a top end kitchen, $10K-$15K for a very good kitchen but you could expect a return of three times minimum on that spend,” he said.
Some ideas to improve the kitchen area include:
• Create a well spread out, open plan design to help open up the rest of the house.
• Create lots of bench space. Think about what type of appliances will stay on the bench (e.g. toaster, kettle, coffee machine) and if there is enough room leftover for food preparation and serving.
• Put in an island to add more serving and preparation space.
• Replace or paint over cupboards. New or repainted cupboards can help freshen up the area. However, remember to try and keep colours as neutral as possible, this way you can appeal to a wide range of buyers.
If you are considering renovating, one option you may wish to consider is using your home loan to fund your renovation. Some renovators refinance their home loan to access more money to finance the renovation. If you are interested in using your home loan for your next renovation, you can speak with our team. They can chat to you about what your property is currently worth, what type of renovations you are looking to undertake and home loan options that may be suitable. Give our Lending Specialists a call on 13 72 62 for a chat about funding your renovations.