How to add value to your home by renovating
You spent a lot of time saving to buy a home, and once you finally manage to swing that huge expense, the last thing you want to do is dip into the savings and spend even more. But have you considered the possibility of adding more value to your home through renovation?
What if you could make your house $20,000 more valuable, but you only had to spend $10,000 to do it? This is a great way to invest in your future, and it’s a very real possibility. If your home has the potential for major value-adding renovations, why not go for it?
Doing more with the space you’ve got
After years of obsessing over deposits and loan interest rates, do you really want to keep spending on real estate? You may want to strongly consider it if you can make a $2 return on every $1 you invest in renovating, according to Domain.com.au. The best way to do this, says buyers’ agent Patrick Bright, is to redefine large outdoor spaces and incorporate them into the structure of your house.
“If you have one big paved or grass area, break it up and put a pergola over one part of it so that it is a defined entertaining area,” Bright recommended. “And if you’ve got room to do it, whack in a built-in barbecue, so that the space becomes a ‘barbecue entertainment area.'”
The indoor part of your house is already fairly well defined, but outdoor amenities can add value where there previously was none. Your front and backyard areas can be turned into small pools, carports, garage spaces, outdoor kitchen and dining areas and more. All of these can be worth real money.
Investing in high-quality renovations
You might think the best way to earn a solid return on your investment is to get materials as cheaply as possible and minimise overhead, but that’s often not the case. It’s almost always better to avoid cheap materials – defects in your renovations such as chipping paint and rotting wood will detract value in the long run, not add it. Even if you need to find a mortgage broker to help you finance a more high-quality renovation, that’s usually worth it.
Contact the team at Premium Portfolio Finance and we’ll help you evaluate your options and choose a financial option right for you.
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