REINZ Real Estate Magazine - Autumn 2021

Page 59

INTEREST

Value-adding renovation ideas for $5k, $10k, $20k or $50k Planned properly, home renovations can help maximise a property’s value ahead of a sale. But when it comes to knowing where to allocate the renovation budget, getting the balance right is a fine art. According to the experts and depending on your vendors’ budget, here are some projects that are likely to deliver good return-on-investment.

Karen Jackson, Managing Director, Lifestyle Finance

Approx. $5,000

Approx. $50,000

According to a 2016 survey from Finder.com.au, an untidy garden can put off 32% of buyers, with some dropping their offers as much as 25% if the property has poor street appeal.

If your vendors have approximately $50,000 to spend, they should be able to tackle bigger jobs or even a full interior renovation (provided they are conservative with their spending).

If your vendors are looking to improve curb appeal on a budget, cosmetic changes like a fresh coat of paint, basic landscaping and a new front door or garage door can go a long way in creating a great first impression.

Combining cosmetic changes and basic room upgrades, a $50,000 budget may cover a new flooring, painting and a refreshed kitchen. Other areas to consider could be double-glazed windows, insulation and a new ventilation system.

Approx. $10,000

In case of big renovation jobs, due diligence is key. Your vendors need to ensure that any changes and improvements are councilapproved where required, and completed by professionals. This is likely to have an impact on costs, planned and unexpected, so having a buffer in the budget is always a good idea.

With an investment of around $10,000, your vendors may be able to get new flooring installed to improve liveability and buyer appeal. Another option for this price point is to undertake a basic kitchen facelift. There’s plenty that can be done to bring new life to a tired-looking space, like repainting, replacing the kitchen benchtop, or installing new door panels and handles.

Approx. $20,000 While a new kitchen or bathroom are good earners, a full high-end bathroom or kitchen renovation is an expensive exercise, and the risk of overcapitalising can be quite high. Having said that, in many cases a budget of $20,000 can be enough to cover the cost of a mid-level kitchen renovation, or the transformation of a small-to-medium-size bathroom with a new shower unit or stylish new cabinets. When choosing fixtures and designs, it’s always important to keep the target market in mind; a kitchen design that works well for one buyer may not appeal to another.

Vendors looking at renovating their property? Get in touch

When it comes to giving properties a spruce-up, finding a balance between a high-quality renovation and staying within budget is all that matters. Our ‘Renovate Now, Pay Later’ finance tool is designed to help Kiwi vendors fund their renovation needs and maximise the sale price of their property. Head to www.lifestylefinance.co.nz/ renovation-finance, or give the Lifestyle Finance team a call on 0800 100 265 to get the conversation started.

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.

AUTUMN 2021

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59


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Articles inside

Looking ahead in 2021

3min
pages 16-17

Potential changes to the Unit Titles Act may be on the way…

5min
pages 64-66

AML: Expired passports guidance

3min
pages 62-63

Supporting buyers and sellers to navigate a hot market – meeting your obligations under the Code of Conduct

3min
pages 60-61

Value-adding renovation ideas for $5k, $10k, $20k or $50k

2min
page 59

5 life-changing tips for real estate sales people

5min
pages 56-57

Invest in personal branding and social selling

5min
pages 54-55

Tax doesn’t mean taxing your brain

5min
pages 52-53

Building a smart city – from the ground up

4min
pages 50-51

5 reasons real estate agents should use video

2min
page 46

New technologically advanced automated valuation model from REINZ

2min
page 45

New Plymouth riding regional New Zealand’s success

3min
pages 38-39

Methamphetamine - more clarity required for landlords and property managers

3min
page 35

Tax consideration for residential property investors and property managers

4min
pages 32-33

RTA Amendment Act 2020

3min
pages 30-31

Rural momentum set to continue into 2021 as demand exceeds supply

4min
pages 26-27

Virtual innovation during COVID-19

5min
pages 24-25

House prices in Wairoa grew at fastest rate in NZ during 2020

2min
pages 14-15

Financialisation of New Zealand housing market is driving house price increases

3min
pages 22-23

Apartment living has never had more appeal

4min
pages 20-21

Fuelling up for the future

3min
pages 36-37

Climate risks could impact loans

4min
pages 28-29

Number of million dollar plus properties sold in 2020 reaches new record levels

4min
pages 18-19
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