Categories: FREE GUIDES

Katrina Wright

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People renovate for lifestyle reasons or to try and make profit. If you intend to stay in your property for a long time and wish to adjust your home for your needs then that is money well spent.

However, if you are considering renovating for profit – tread carefully.

  • In the current market, buyers tend to prefer renovated properties as they can move straight in and not worry about the availability of trades and the rising cost of materials.
  • Some suburbs have a ceiling price. Potential buyers, no matter how attractive the property, may not go over that ceiling price. In these areas, if you spend a certain amount renovating, it won’t necessarily increase the value of the property by the same amount.
  • You don’t want to spend money renovating the property and then find that you’ve lost money.
  • Of course, there are exceptions to the rule. When you can add unique and desirable features to your property, in the right area, you can profit from renovation. For example, if you have a two-bedroom one-bathroom unit in a suburb where there are many other similar properties, and you reconfigure the unit to fit a second bathroom – you change the property and give it a point of difference.
  • The point is that your money is precious and sometimes you don’t need to spend a lot on your property to get the best price. You have to know the market and know what potential buyers are prepared to pay for.
  • If you are considering selling your property, talk to a market expert and work out what the achievable end price is for your home in your area.
  • You don’t want to overcapitalise by spending money you won’t make back.