Do you think your property could benefit from a freshen up before going to market? Well thought-out renovations can add buyer appeal and boost your sale price. But first, it’s important to plan ahead, to make sure the project you have in mind fits your needs and budget.
Here are some tips to get you started.
What would you like to achieve?
A good starting point is to understand what your renovation goals are, and what steps you can afford to take to unlock your property’s potential.
Identify your priorities. Writing down a list of ‘essentials’ (e.g. a new roof) and ‘nice-to-haves’ can be a great way to get organised. While doing this, don’t lose sight of your target market and what their needs might be: first-home buyers and empty-nesters, for example, usually have different requirements when it comes to housing.
Of course, the main purpose of all good renovation projects is to maximise your investment and turn up a profit. Talking to a property valuer and renovation specialists can help you run the numbers and identify the most cost-effective renovation jobs based on your budget.
How much do renovation jobs actually cost?
Costs vary significantly depending on the project, but here are some rough cost estimates from New Zealand builders:
Kitchen: $20,000 - $100,000+
Bathroom: $20,000 - $50,000+
Bedroom/s: $2,000 - $80,000+
Walk-in-wardrobe: $10,000 - $20,000+
Ground floor extension: $60,000 - $200,000+
Loft conversion/second storey addition: $200,000 - $450,000+
Re-cladding: $40,000 - $400,000+
Re-roofing: $8,000 - $30,000+
How much can you comfortably afford to spend?
No renovation project is the same, so working out an exact amount can be challenging. It doesn’t just depend on your financial situation, but also on the actual condition of the house, what you paid for it in the first place, and the potential resale value in your area.
Overshooting the budget is also quite easy, so make sure you are realistic when planning a budget and factor in a buffer, to help you deal with unexpected surprises along the way. Once you have worked out all of your costs, it’s time to consider how to fund them.
How will you fund your renovation?
Finding a balance between a high-quality renovation and making it work within your budget is all that matters. Depending on your situation, you may be able to fund simple cosmetic changes from your savings. But this often isn’t an option with more structured renovations.
Our Front Door Finance tool can help fund your renovation needs, and for 90 days you won’t have to pay any of the principal. Simply let us know what you’d like to fix around your property, and we’ll work with you to make it happen. Meanwhile, the three-month deferred payment period will also give you extra breathing space to spruce up the property and put it on the market.
Click here to learn more and call us on 0800 100 265 to get your renovations underway.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.