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.

Approx. $5,000

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 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.

Approx. $10,000

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.

Approx. $50,000

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). 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.

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.

Karen Jackson, Managing Director, Lifestyle Finance

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.