At some point many homeowners decide to improve their property. Home renovations can enhance your lifestyle and improve the value of your property. Or maybe you need to renovate to make room for a new family member.
Low Cost Renovations:
- If you are working to a low budget consider re-painting or even landscapingReplacing doors and windows are all highly visible renovations and when done add greatly to the value of the property
Medium Cost Renovations:
- If you are looking at renovating the wet areas in your home like the kitchen, bathroom or laundry you probably need to have a budget of around $20,000.
- Prices of new kitchens and bathrooms start at around $10,000 and generally add about $15,000 to the resale of a home.
High Cost Renovations:
- Renovations over $20,000 could include
- Room extensions
- a complete refurbishment
- adding a granny flat or room
The bottom line is you should spend enough to get the house looking good, to make it work for you and your lifestyle, and to hopefully sell it one day at a profit.
If the improvements you make push the home beyond its resale value you are in danger of overcapitalizing your property.
Before you start any type of home renovation, take time to carefully arrange your finance, warns Gill McLean, General Manager of moneyQuest Australia.
“Consider refinancing your home loan to pay for the renovations. It’s never been a better time to refinance your home loan now that penalty fees have been abolished,” McLean added.
If you are about to renovate your house then it pays to research all the types of home loans available and then discuss your options with a mortgage professional.
For more home loan and mortgage information please visit the ratesonline.com.au web site. Here you can compare home loans, make an appointment with a mortgage broker and use a free home loan calculator to access your potential borrowing power.
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