Maximising profit from your renovation
‘Don’t over capitalise’ should be every renovators mantra.
The important thing is to make the combined effect look more expensive than it actually is – not only impressing your visitors now but future purchasers as well.
Overspending on slightly better fixtures or materials makes a marginal difference but eats into your potential profit, so think long and hard before committing to your dream renovation, you may be throwing money away. Now, we do not advocate cheap materials and budget builders, just avoid getting carried away with incremental improvements or before you know it you will be installing $300 toilet roll holders because of their marine grade stainless steel construction or superior chrome plating. This type of overkill is fine if you intend to stay put for many years but with nearly 43% of Australian families with children moving at least once every 5 years, most people simply don’t own a house long enough to appreciate the subtle improvements.
It’s terribly obvious but much of a buyer’s judgement of a house is based on their first impression and this means the exterior of the property. Creating an element of love at first sight is a great strategic move. Most prospective buyers will then overlook many more potential problems in a house’s layout or interior.
A personal connection with the property can also result in buyers bidding or offering irrational amounts beyond their planned budget maximum. Tidying paths, replanting grass, renewing rusting guttering and repainting facia boards and are all cheap and easy ways to create a positive first impression.
Kitchen and bathroom
Generally bathroom and kitchen makeovers offer good return on your investment but if you are thinking of selling in the near future you may wish to do a simple makeover instead. Most new homeowners want to put their own stamp on their new home and will typically target the kitchen and bathroom first.