How To Improve The Value Of Your Home - Expert Reveals Top 4 Renovation Project Ideas
The below article is an extract from Issue 4 of the Renovation Report. You can download the full report for free here.
Australia is experiencing a property boom with record prices being achieved at sale in key markets. As the value of homes are increasing, the opportunity to access equity in the family home as well as record low interest rates are underpinning a surge in renovation activity with the HIA announcing, " 2021 is the year of the renovation".
Research from the Australian Bureau of Statistics revealed growth across all Australian capital cities in the quarter ending December 2020. In fact, during
this period, residential property prices rose 3.6% which is the first time that all capital cities experienced an increase since 2014.
Planning Advice For Home Improvement Renovations
Selecting a project for your home renovation project should take a number of factors into consideration and before you commit to a DIY or home improvement
project, you should assess your personal situation against these key renovation project planning things to consider;
- Are you renovating to sell your property or to stay in an improved home?
- If you are renovating to make money on selling your house, what renovation projects will add the most value? this question of 'will a home renovation project add value to my home?' must be answered.
- What is important to prospective buyers in your area? Tip: Local real estate agents can provide advice on this question - you should look to match an improvement project idea with criteria that is important to buyers in your market (ie, an outdoor alfresco area).
- Can you commit to a renovation now? What impact will it have on your living arrangements? Renovations, especially those without a plan and budget can be stressful, ask yourself, is now a good time to renovate?
- What is your budget? Also ask yourself, can I afford to renovate? Be sure to research how much do home renovations cost in your area and also ask; how will I pay for the renovation?
How To Finance A Home Renovation Project - Options You Must Consider
There are a number of ways that you can pay for your a renovation to your home.
- Use money you have saved - put your savings to work in a home improvement project
- Talk to your lender about a loan to renovate - interest rates are currently low making this an attractive option to some homeowners
- Use equity you may have stored in your home - the property market boom is driving prices up which also increases the value of homes in these areas (and equity if it is available)
- DIY projects - always remember trades are critical for many jobs, ie, licensed electricians, plumbers etc
While borrowing costs are already low, many homeowners now enjoy the luxury of being able to tap into their home’s equity given the property value increases experienced across many key real estate markets. Subject to your personal circumstances, the value of you home and amount owing, it may be possible to leverage the wealth created in your existing property to fund a renovation.
Most Popular Home Renovation Ideas - Aussie's Top Projects Exposed
Choosing where to start your home renovation project can be one of the hardest questions, particularly if you own an older home that could benefit from a number of projects. For many, it is useful to have renovation ideas and examples of home improvement projects that add value that you can refer to. This can help ensure you stay on track with the designs and styles you liked once the project gets underway,
Research by Houzz Australia indicates three top projects are renovations to the Outdoor area (30% of respondents), the Kitchen (26%) and the Bathroom (24%). While inside projects like kitchens, bathrooms, living areas and media rooms will always be popular due to the fact they are high use and therefore, can be high value to your lifestyle, investing in the outdoors is a popular option for first time renovators as well as more experienced renovators who have already ticked off other projects.
"Outdoor projects like entertaining areas, patios, alfresco dining, outdoor kitchens and sprucing the front yard are great DIY project ideas that can help improve your home" says landscaping expert and award winning landscape designer Jason Hodges.
Here, Jason Hodges Shares 5 Reasons Why Outdoor Renovation Projects Are Great For Home Improvement:
- Unlike kitchens and bathrooms, many outdoor renovations can be done DIY, saving you money on labour
- Outdoor projects and gardens can look better in time, as the plants grow out. A kitchen or bathroom never again looks as good as the day it's finished.
- Australians love entertaining outside. Alfresco dining areas, fire pits and even full outdoor kitchens will enhance your lifestyle and when done right, these will be appealing to potential buyers
- Front gardens, driveways and paths are like billboards for your home. People (potential buyers) will make value judgements on your home based on the street appeal - remember, first impressions count!
- You can practice with outdoor projects. Take on a small, somewhat hidden side step stone paver path before taking on the high visibility entertaining area.
Award Winning Landscape Designer Reveals 4 DIY Project Ideas
According to Jason Hodges, there are four key DIY projects that can; add value to your home, significantly improve your lifestyle, and can transform your
wasted spaces into money makers. Options for homeowners with growing equity who may be considering a renovation as well as the top four projects are
covered in detail in issue 4 of the Renovation Report.
The full report contains detailed information and all sources which have been referenced in this extract. References and links to articles cited in this
report can be found on the last page of the report.