Add luxury and value to your home without overcapitalizing on renovations
The right renovations can transform an ordinary home into a cash-flow positive property, but be cautious of spending too much on refurbishments that won’t add value in the long run. If the work ends up costing more than the anticipated increase in the value of your property, you have overcapitalized on your renovations.
- Have your property valued by a professional. Knowing how much a property is worth is critical when considering how much to spend on renovations. Also bear in mind how many years you intend to live at the property before selling. If you are looking at a sale in a few years’ time, it may be worthwhile to spend a bit more now.
- Speak to your agent about recent sales in the area. It may not be prudent to spend a fortune on renovations when the market is unable to match your home’s new price. Visit a few open houses in your area to compare the fixtures and fittings of similarly priced homes and chat to your agent about what features buyers and renters are looking for. We are seeing a growing number of buyers looking for flats or cottages on a property to accommodate extended family, as an example of possible renovations to consider. Security and low maintenance gardens are among some of the features topping buyers’ wish lists.
- Make sure you have a clear budget before starting any renovations, even if you intend to do the work yourself. Even a fresh coat of paint or other small changes could add value to your home.
- Know which rooms will add value to your home if renovated. Contemporary kitchens and bathrooms are always selling points.
Consider going green if you’re investing in improving your property
- Given the country’s current water scarcity, any energy-saving upgrades will add value to your home and make it more compelling to a wider range of buyers. Perhaps replace some of the lawn in your garden with paving and opt for water-wise plants where possible. Indigenous ornamental grasses and ground covers are a beautiful, water-wise alternative to more traditional and exotic lawns and they require less mowing. Opt for solar lights that will lessen your carbon footprint and add an ambience to your garden at night.
- Avoid renovations that are too personal. You may enjoy a bright red accent wall, for example, but it may not be to every buyer’s taste. Rather spend your money on other aspects, such as fold-back patio doors for open-plan living or quality kitchen counter tops that will give your home broad appeal.