Add the right value with a home renovation.
You love your Perth neighbourhood. It holds a lot of sentimental value for you. Maybe your kids grew up cycling along its familiar streets. Maybe your best mates also happen to live next door? Whatever the reasons, there are usually plenty of good ones to stay in the area you know and love. But your living areas are no longer up to scratch. You know the space could be used better and become a place that you love to share with your family and friends. The solution? Renovate!
Now we all know that renovating area can unlock a lot of value in your Perth home; however, overcapitalising or having the best home in the worst street can be a poor move financially.
A little mathematics
So how much should you spend? First investigate what the homes in your area are selling for. Look at the median and peak values to get a good idea of what people are prepared to pay. This information is easy to find just by visiting REIWA. With a little knowledge on how much your home is currently worth and a bit of math, you will arrive at a ballpark figure on how much you should be spending on a renovation. As a for instance, say you live in Mosman Park, Perth. A quick look at REIWA shows that the median cost of homes is around $1.4 million with an upper range of $2.2 million. Now if your place is at the median level, you can comfortably invest several hundred thousand in your home and still be well within the band of pricing that people are prepared in pay in that suburb. However, before committing to anything you should seek professional financial advice and even have a chat with your local real estate agent.
How much value can you unlock?
We’ve all seen enough renovation shows to know that when done correctly, a home renovation will add more value to a home than the cost of doing it. To give an example, a single storey, three-bedroom home in Floreat, Perth that hasn’t been renovated can go for between $900,000 and $1.1 million. A renovated home in the same area with two storeys and four bedrooms can sell for between $1.5 million and $2 million. Even just doing up your outdoor area can potentially add tens of thousands of dollars to your home’s value. If you get it right, it could add even more.
No such thing as too much?
Home values aside, the main motivation people have for renovating their outdoor area is so they can spend more time with friends and family. All the calculations in the world will never be able to give you a value on these moments.
Getting more out of the place that you’ve owned and loved for years can be very rewarding. But like any type of renovation, do your homework and ask as many questions as you can think of.
If you are thinking about undertaking a home renovation or home extension get in touch with the Design Renovate team today and lets get started.