Recent figures from the Bureau of Statistics show renovation loans have hit a 7-year high in trend terms.
With house prices on the rise, homeowners may feel it will be cheaper to add extra rooms rather than move to a bigger house, or perhaps they want to take advantage of this and add value to the property by revamping the kitchen.
The TV makeover shows make it look so easy – in just one hour’s viewing time the property is transformed. However, anyone who’s done any kind of renovations knows this isn’t the reality.
Here are three mistakes to avoid when it comes to renovations:
There is an unwritten rule for purchasers of property; buy the worst home in a great street/area, do it up, and then sell it as the best home in the street.
However, you must make sure the cost of the renovations don’t cost more than what the property will be worth when they are finished – ie you need to at least recoup this money when you come to sell the property.
If you’re planning on living in a property for the next 20 years, the chances are, the expensive make-over will be worth it. If you’re planning on selling in the near future, it might be wise to look at other ways in which you can upgrade your house. For instance, if the bathroom tiles are in good condition, it might be cheaper to have them painted, or you could look other ways to add value such as increasing the property’s energy efficiency rating by adding down lights.
We have yet to meet a homeowner who has had a renovation that stayed on budget. Hitting rock, discovering you’ve got asbestos and even getting the measurements wrong will add to your budget. In some cases, renovations have blown out 2 or 3 times the original cost.
Be realistic with your budgeting. There is a saying ‘a poor man pays twice’; using a cheaper material or not paying for the work to be done properly may be more expensive in the long-run.
It’s not just money homeowners run out of; you’d be surprised at the amount of properties we see where homeowners have run out of time and motivation, and they’re now living in a half renovated house they’re trying to sell.
Plan your renovation properly, not just in terms of cost, but in terms of how you’ll be living and the time you’ll need to do it. You do need to be mentally prepared when you’re making big changes as you will be living in chaos.
If you’re thinking of selling your property, or even just want an appraisal, come and talk to us. We can highlight areas where work can be done quickly and easily to help you get a better price.
As one of Newcastle’s longest established real estate offices, our innovative team is constantly achieving great results for our clients.
Drop into the Cardiff office or give us a call on 02 4954 8833. Or send us an email to: email@example.com – we’d love to hear from you.
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