Renovating to Sell
Thinking a renovation might give your property the edge in today’s buyer’s market? Renovating is a great way of adding value to your home. But like most creative projects renovating can be frustrating and stressful – that’s where a Loan Market mortgage broker can help.
Depending on the size of your renovation project, you could need anything from a few thousand to hundreds of thousands of dollars. If you already have an existing home loan then a Loan Market Mortgage broker will help you explore a number of competitive refinance options.
Redraw Facility – For smaller projects such as a new bathroom or sun deck
Loan top ups – For small to medium sized renovations
Home Equity loans – For medium sized projects such as a kitchen or pool
Before starting your renovation project, there are some matters to consider:
- Research your local market: how have sales of renovated properties compared with sales of original-condition properties? If poorly, you will need to exercise a great deal of caution when deciding whether and how to renovate.
- Be wary of over-capitalising a property located in a mortgage fringe area, as the amount spent on renovations may not translate to real market value.
- Who are the potential buyers of the property? Renovate to your target market.
- Is your block big enough to extend the dwelling? How much land are you willing to ‘give up’?
- Your location is an important factor to consider: a good location adds value e.g. next to transport and shops.
Here are some examples of types of renovations that may increase the value of property:
- Bigger, updated kitchens – a large walk-in pantry
- Large bathrooms – minimum of two including ensuite – with separate bath and shower
- Restoration of a home’s period features
- Modernising updates to a non-period or limited appeal home
- Outdoor entertainment areas, including outdoor ‘rooms’
- Additional living spaces, e.g. rumpus room, home theatre room
- Car space – especially in inner-city areas. Basement car spaces attract a premium
The general rule is don’t overcapitalise, and don’t spend more than 40% of your home value on renovations. For more information on your home renovation loan options, book your free home loan assessment today.
Loan Market & WBP Property GroupTags: home equity loans, Loan Market, loan top ups, redraw facility, Renovating, renovation loans, WBP Property Group