How to get the most out of your renovations

Australians love to renovate, tearing out and updating everything – including the kitchen sink. If you know what you’re doing the right additions and modifications can make your home a more comfortable place to live, or even increase it’s resale value.

Before you rush in with the jackhammer first and rip out everything, it’s important to consider the logistics of renovating. First of all you must know where, what and how to renovate, to ensure your home benefits from your additions. Secondly, as smart renovations will most likely increase your equity – this may just be the ideal time to enlist the help of a mortgage broker. With the assistance of a professional, refinancing your home loan and affording your renos will be a walk in the park.

Are we spending to much?

Whether we’re renovating the right way is up for discussion, however it’s a certainty that Australians are renovating their homes en-masse. In fact during the 3 months to March 2016, Australians spent a whopping $1.94 billion dollars on alterations and additions to their homes according to the Australian Bureau of Statistics. That’s an average of over $200 per household!

Obviously every household in the country didn’t renovate during this period, so the real value is much higher. We know Aussies are spending a lot on renovations, but are they renovating efficiently and cost effectively?

What do Australians want in a home

It may be tempting to update your entire home, from doorknobs to oven hobs, but this will undoubtedly push your finances to the limits. Instead, it’s better to focus on certain areas of your property that you, or a potential buyer, will reap the most benefit from.

A Buyer’s Agents Association report has shed some light on what these might be, with a survey that discovered what Aussie buyers want in a home. First on the list was an open plan living room, second was a butler’s pantry and third was good natural light in a home. Focusing on renovating your home to fit these criteria could be a cost-efficient and effective way to increase its resale value.

According to CoreLogic RP Data, 92 per cent of Australians who sold in the first quarter of 2016 made a profit. Refinancing your home loan and undertaking smart renovations could be the key to ensuring that you’re among them this quarter!