Three Things to Think About Prior to Renovating
A fantastic renovation can add a significant amount to the value of your property, and funding one has never been cheaper with our existing record-low interest rates.
To have a lucrative renovation in the long term isn’t always dependable on having the most expensive tranche of works done to your property.
Remember the more you spend on a renovation the less profit margin you could have when it comes time to sell. So, investigate the local market and understand the profile of your potential buyer to make sure you’re spending your money wisely.
Perhaps invite your favourite real estate agent in for advice on areas to renovate for maximum return on your investment.
Workspaces are critical
COVID-19 has changed many of our home preferences. As we’ve now become so lifestyle-focused, we need homes that have been revamped to utilise all the available space, also often want it to have a resort-like feel, with outdoor entertaining areas and pools.
In any case, working remotely has become the norm for lots of people and is likely to stay for many after the pandemic. So, no doubt the working-from-home environment should be front and centre when renovating. Home offices or studies are a crucial addition in any renovation, and they should be comfortable yet private spaces.
There have never been so many affordable options for paying for renovations, either.
Many people who’ve worked through COVID currently have reserve funds from not spending on abroad travel, eating out, and entertainment. Others maybe considering redrawing their additional home equity following recent house value rises and either expanding their home loan or refinancing it to incorporate the additional work.
Cheap money
The best method of financing can be a matter of personal circumstance, and it’s recommended you get advice from your home loan provider and/or accountant or financial adviser.
Money is so cheap now; it’s a good idea to lock in a fixed interest rate, with some still on a variable rate so you can pay off more. Then you can draw equity on your mortgage or you might have money in the offset account, which is the same as savings.
However, assuming you are thinking about a loan for renovations, it’s smarter to have that attached to the home loan, as that will be a lot less expensive than a personal loan.
Renovations reap rewards
Homes that are professionally renovated today are commanding much higher prices than those that aren’t.
A great deal of home buyers would rather adhere to the white-collar work they’re good at than any tradie work. In addition, they either don’t have the time or inclination to do a reno or oversee one. Also, there’s a bit of a trade deficiency now, and work and material can be quite exorbitant.
So, they’re checking out homes that have been renovated to include some kind of office space regardless of whether it’s made from a space under the flight of stairs, in a large bedroom where the Zoom camera isn’t pointed at the bed, or in an area in the living space.
They’d likewise like a smart bathroom and kitchen, and open plan is always a crowd-pleaser. Indeed, even inexpensive items like fresh paint, new carpet or good flooring goes a long way.
Opteon research study has actually discovered the number of people renovating is still increasing, with their home improvement projects also expanding in scope, with many undertaking work well over $150,000.
But you’re borrowing money at low interest rates, and property is predicted to go up in price even more next year. So there ought to be always be a good return on money spent on renovations when selling.
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