Getting value for money in a sluggish market

The property market has slowed considerably and homeowners are wondering whether the cost of their planned improvements will be recouped when they sell. The answer is: It depends on the improvements.

 Some work will return value almost instantly and actually assist the sale in a sluggish market; other projects will take years to recoup. The golden rule is to spend in proportion to the overall value of your home and those of surrounding properties. There is no point in investing $80,000 in a kitchen if homes in your area are selling for less than say $600,000.

 That does not mean you shouldn’t consider modernising the kitchen or bathroom – they are always good selling points – but do it within the price range expectations of where you live. If you are in doubt, a local real estate agent will probably be able to offer advice.

Expanding the size of your home is usually a good way of getting back what you have spent plus a little. A rumpus room at the back, or a parents retreat as an extra storey should easily cover your costs when you come to sell. However, always ensure that any ground extension leaves some of the garden intact, even if it’s only a courtyard. People do value being able to relax in the open air.

DIY is a tempting way of keeping costs down, but unless you have absolute confidence in your abilities it is best to leave the big jobs to an HIA member builder – poorly finished work can send prices tumbling. Also make sure that any improvements are in keeping with the age and style of the home. An extension should complement the existing property, not stand out like a sore thumb.

Bedroom conversions are a difficult subject. Traditional real estate agents will be aghast at the suggestion, stating plainly that the fewer the bedrooms the lower the price. Others prefer to market homes according to the total area in square metres. The fact is that families are getting smaller and dedicated studies and home entertainment centres are attractive, especially at the top end of the market. If the home has more than three bedrooms, a conversion may be a worthwhile project.

Finally look at what sustainable features can be incorporated in any extension or renovation. In past years agents have maintained these do not sell houses, but with the emphasis on climate change and greenhouse gas emissions growing more intense almost by the day, this is sure to change – and while you are waiting you will be saving money on power bills For further advice on this subject talk to an HIA GreenSmart certified builder or home designer.

Need a tradesperson? Find an HIA professional convenient to you at tradebuild.com.au