Holiday instead: $50k spend that’s wasted
If you’re thinking of blowing $50,000 on this, think again and maybe take a holiday instead.
When it comes to renovating, there are certain things worth forking out for. But sometimes even the big ticket items can be a waste of money.
Ray White Annandale real estate agent and licensee in charge Tina O’Connor recalls a client who had a kitchen that was both functional and modern. Against her advice, the client spent $30,000 on a complete kitchen renovation in an attempt to add value before selling – but it proved a fruitless exercise.
“It looked the same as the one they replaced,” O’Connor says.
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Given a mid-range kitchen reno can cost around $50,000 these days, you need to stop and think and do your sums before you commit.
On the other end of the renovation spectrum are those homeowners who attempt to save money by either doing work themselves or hiring sub-par tradies – a choice which inevitably cuts value from their selling price, she says.
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Poorly executed DIY work – particularly in the case of tiling, painting and installing fixtures – has the power to completely change the buyer’s interaction with the home.
“Sloppy finishes and mismatched designs often result in costing sellers more, as buyers notice these flaws and may factor in the expense of repairs or replacements,” she says.
RENOS TO SAVE ON
Fortunately, not all value-adding renovations cost an arm and a leg. O’Connor says there are certain budget friendly jobs homeowners can afford to save a bit of money on without it impacting the value of their property.
These include small cosmetic updates such as changing the light fixtures, revamping cabinetry and improving the landscaping.
“Opting for budget-friendly yet quality materials and keeping projects simple and timeless can maximise results without hefty costs,” she says. “Also, a deep clean of the property always makes a huge difference and can be done yourself.”
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She recommends paying close attention to light fittings, windows, the tops of skirting boards, bathroom grout and shower screens.
Founder of Vault Interiors Property Styling Justine Wilson says focusing on “high-impact projects” that improve the way the property looks is a budget-friendly way to create buyer appeal.
“Rather than replacing kitchen cabinets, consider repainting or adding new handles to give them a modern touch,” Wilson suggests.
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RENOS TO SPLURGE ON
As for which renos to splurge on, founder and principal of Horwood Nolan, Concord & Drummoyne Ben Horwood says homeowners should focus their spending on maintaining the structural integrity of the building as well as keeping essentials like roofing, plumbing, and electrical systems in good condition.
“If these basics aren’t in good shape, potential buyers may discount the property’s value or expect concessions,” he says.
Wilson says if the bathrooms and kitchen are outdated and you have judged it a worthy investment to get them renovated, it’s worth paying for good quality.
“These are the spaces buyers focus on most and expect quality finishes,” Wilson says
O’Connor says it’s also worth investing in professional painting “to ensure a polished result.”
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RENOVATE VS SELLING A ‘BLANK CANVAS’
Sometimes it’s not worth spending money renovating a home that could sell better as a “blank canvas” property. Tina O’Connor from Ray White Annandale says when deciding whether to renovate or sell a property as it is, homeowners may like to assess the following areas.
* Structural integrity – If the foundation, roof, plumbing and electrical systems are in poor condition and require a huge investment, it may be more practical to sell without renovating
* Bathrooms and kitchens – These are important areas for the buyer and are costly to update so should be weighed up carefully
* Exterior – If this is dilapidated and requires a lot of work, and the structure plus the kitchen and bathroom need extensive work, the overall cost of renovation could outweigh the potential return
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Originally published as Holiday instead: $50k spend that’s wasted