Don't Overcapitalise

Don't Overcapitalise

By Dominic Hefferan on Mar 26 2018

Renovation shows are all the rage these days, and it's true that a good renovation can drastically improve the value of your home at a sale. But it's also possible to go too far and spend more on renovations than you can hope to make back, which is why today we're looking at how to get your restyle just right.

Make a Plan
First things first: why are you renovating? Are you looking to sell in the next year, or is this something for you? If it's because you want to sell, focus on popular areas, like the kitchen or the living room, as these will be what future buyers look at first. If this is more for you, you can be a bit more relaxed, but you should still keep an eye out for what potential buyers might want.

Make a Budget
A good rule of thumb is to set aside about 10% of what you paid for the property. For example, if you bought a house for $600,000 you should expect to pay about $60,000 for a proper renovation.

Though it can be tempting to try to save a bit of money and DIY, this will almost definitely cost more in the long run, so it's better to let the professionals handle the work.

Keep It Simple
The biggest problem with people who overcapitalise is that they try to do too much for their property, and end up putting potential buyers off. If you have a three-bed lowset, you probably don't need a massive bathroom with a two-person luxury bath. Instead, take a good look at what's out of date in your home, or what minor annoyances you deal with day-to-day, then fix them.

Of course, you can always get inspiration from properties around you. We've got a wide selection of homes of all shapes and sizes, so feel free to come to an open inspection or arrange a private tour to see what could work for you.