The Australian real estate market consistently experiences ups and downs when it comes to market price. When the market is down, many homeowners decide to forego buying a new home and renovate their existing home instead. The price is often cheaper than buying a new home and it increases the future selling price of the home. There are numerous benefits to renovating a small or outdated home, but there are pitfalls that homeowners can fall into when renovating. The main pitfall, and the one that can affect the future sale of your home, is spending too much on a renovation.
When to Budget a Renovation
If you’re holding off on buying a new home due to high Australian real estate prices, you will still want to budget your renovation if you plan on selling in the future. The only reason you should spend a large amount on a home renovation is if you’re looking to keep the house in the family and will pass it on to your children or grandchildren. In a situation where you will eventually sell, you want to be able to get your money back in the asking price.
An Australia real estate agent can meet with you and let you know what renovations would benefit you in the long run, while keeping in mind that you don’t want to spend more than necessary. Remodeling a kitchen is usually profitable because so many homebuyers consider the kitchen as one of the most important rooms they look at when purchasing a home. You can install new cabinets, replace countertops, and knock down a wall to make the kitchen bigger. Anything you do in your kitchen will most likely give you a profit when you sell.
Renovations to Avoid
Living and dining room renovations aren’t as profitable as kitchen and bathroom, unless of course either of these rooms is extremely small. If you’re only going to be in the house for another three to five years, focus on renovating areas that are outdated. You should avoid renovating garage or storage areas, as those renovations won’t net you much in resale value. You can spruce them up and make them look nicer, but there’s no need to add square footage to a garage or shed in the hopes that you can increase your asking price. Before starting any renovations, you should speak with an Australian real estate agent and discuss the housing prices in Australia to help you decide exactly what to renovate.