Page 2 - Welcome Home Magazine October 2021

HOW TO GET VALUE FOR

MONEY WHEN Renovating

If you’re renovating before you sell, return on investment is likely to be top of mind. Where can you get
the most bang for your buck?

While it’s impossible to quantify exactly how much a renovation adds to your sale, plenty of anecdotal
evidence suggests it does make a difference.

The REA Property Seeker Survey (December 2020) found 84% of sellers undertook some kind of renovation
before they sold. On top of that, 2/3 felt that the sales price increased, even after taking out the cost of the
renovation. “Even smaller renovations, such as updating flooring, paint or light fittings, makes a difference,”
REA economic analyst Paul Ryan explains.

“They make the house look well-maintained and can also present a blank slate for new buyers who can
better-picture themselves living in the house. If you move up the scale of renovations, anything that adds
functionality will have an impact on price. That could be adding a bedroom or adding more natural light
through windows.”

The trick for maximising your return comes from knowing where to spend and where to save. We spoke to
experts in the field of building and renovating to gauge where your money is best spent. Here’s what they
had to say....

Kitchen

The kitchen and bathroom are two of the highest impact areas. They’re also the most expensive to renovate.

Experienced builder and Director of construction and renovation company Supa Group, Matt Howard, says
understanding the local market can help determine the return on investment on your kitchen reno. “It’s
about understanding what your local market is, what the expectation is and then working out what will give
you bang for your buck from there,” he shares. “For instance, if you’re in a [less expensive] market, you’re not
going to sink $40k into a kitchen when local homeowners aren’t going to see the value in it. Whereas if you’re
in a more premium market, you’re not going to go for a cheap finish.”

While your kitchen may need an entire overhaul, you could also do aesthetic changes such as cabinet doors,
handles or benchtops. “If you’re going to do a kitchen renovation, the starting point would be benchtops,”
Matt explains. “If you’ve got old, laminate benchtops, changing them to reconstituted stone isn’t that expen-
sive any more.” However, consider if you’re going to disturb any tiles in this process, whether that be on your
floor or walls. If removing a bench top will cut into your splash back, Matt suggests upgrading to a simple
glass variety for ease and to add a modern touch.