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Will My Renovations Add Value To My Home?

A question that I am often asked is “Should I renovate and how much value will it add to my property?”.

With any home improvement undertaking, it is super important to pinpoint those renovations that will maximize your return on investment.

The biggest priority is to avoid over capitalisation i.e. if the cost of buying and renovating your home is more than what you could potentially sell it for. I think the best place to begin is to understand the average selling price in your area. Ask your real estate agent for a Comparative Market Analysis on your home to see what you would achieve in the current market.

7 Improvements that increase your home value

  • Updated Kitchen – One of the most salient aspects of a home but can be costly. Make sure the renovation cost aligns with the home’s value
  • More Bathrooms – A key focus area that will be a valuable enhancement
  • Outdoor Entertainment – Extending your living space will enhance your home’s appeal
  • Security – This is a must for most home buyers so investing in a decent security system will certainly add value
  • Off-grid technology – Solar panels, inverters, heat pumps, and water tanks that are plumbed in is an on-trend enhancement for eco-conscious buyers
  • Increasing square meters – Adding bedrooms, bigger living areas and open-plan designs can substantially increase your home’s value
  • Adding accommodation – Building a cottage for an extended family can lead to income generation opportunities.

5 Improvements that are “nice to have” but do not necessarily increase your home value

  • Landscaped Garden
  • Swimming Pool
  • Borehole
  • Air Conditioning
  • Replacing Windows and Doors

Once you’ve made the decision to undertake your renovation project, it is vitally important to select reputable contractors who can provide references for their work. You will want to create a detailed plan of what you want with their associated costs.

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