When renovating, it’s common to create a budget and it’s important to stick to this budget to prevent over spending and possibly over-capitalising your home in Sydney. If you have to unexpectedly sell your home, an over-capitalised renovation could see you losing money. But there is more to consider than simply fixing up a few rooms.
Many home owners in Sydney think only in terms of the features they can afford within a certain budget. They want ‘x’ amount of extra space for ‘y’ dollars, but most don’t consider the overall impact on the property of simply ‘adding on’.
Harmony is a Priority
The question that needs to be asked to maximise value for money is “Will the house look harmonious?” Many people renovate the worst thing in the house (e.g the kitchen) only to find that the rest of the house looks much dingier now the kitchen is fixed. The kitchen may now be worth more, but possibly the rest of the house appears to be worth less as the contrast between old and new may make buyers notice how much work is still to be done.
Seen as harmonious whole, a house where all rooms are of a similar standard and style seems in better condition than if one area is renovated, creating an island of contrast that shows up in the rest of the property.
Kitchen & Bath Renovations
Kitchens and bathrooms add value to a home, but they may add less than you expect if the rest of the house now looks shabby. Better to leave it for the next person, particularly as you will be trying to recoup the cost and the higher price tag restricts you to buyers in a higher price range, narrowing the pool of buyer possibilities.
Many people who don’t have money now but expect to have it in a few years buy un-renovated houses in Sydney and simply put up with them the way they are until they can afford to fix them.
Conversely, if the rest of the house is renovated, it would be unwise to stop short at the kitchen and bathroom even if you have to borrow money to do it. If the house presents as a seamless harmonious whole, the wow factor is reflected in sales dollars.
Furthermore, the concept of scale needs to be considered. If you have a house with small rooms and you add on a very large one, the rooms you started with will look smaller by comparison.
It also goes without saying that when choosing colours and features, it is important to take the advice of experts and choose neutral colours that appeal to a wider market. If you make idiosyncratic changes that narrow down the buyer market to a niche group of buyers (e.g unusual colours or height changes to allow for tall or short people etc) these are unlikely to result in the wished-for capital appreciation.