Renovators Delight might be industry speak for “might do better to knock it down and start again” – but that’s not where we’re going. With the current market price trends (still upward), it can be discouraging when looking at purchasing property. However, renovators delight! 

Whether you are a property owner thinking about an upgrade, or looking to purchase for the first time, now might be the time to consider renovating as the next step.

By dictionary definition, to renovate means “to restore to a good state of repair” but the more appropriate and accepted use would be to “change, refresh or reinvigorate”. 

Purchasing and renovating

The old adage “worst house in the best street” might never have been more relevant than now. While you wouldn’t want to purchase a house in disrepair, selecting a house that is outdated and in need of a lift could be worth considering.

Of course, your renovation doesn’t have to take place straight away – but may form a strategic part of your plan.

Renovating existing property

Renovation can take place in a variety of shapes and sizes: landscaping; additions; moving walls; replacing bathrooms; touch-ups; painting; and minor repairs. When assessing your existing property and whether renovation is a good next step, the first question to ask yourself could be, “What is the outcome I want to achieve?”  Closely followed by, “How much should I spend?” And, “Is my outcome achievable with this property, within this budget?” If the ultimate answer to the final question is yes, it’s worth doing some homework.

Things to consider

Regardless of where you’re at, there are a number of considerations as well as fairly standard pros and cons.

Potential benefits:

  • Improves asset appeal, liveability and value
  • Increases equity
  • Provides an opportunity to get creative
  • Results in a sense of achievement

Of course, there are some things to be cautious about. 

Renovating requires a degree of flexibility in the budget as unexpected costs can arise, potentially blowing the budget, or worse, leaving you with incomplete works.

It pays to be thoughtful about what changes are worth making, what you can safely DIY, and when to call in the experts. A DIY that should have been completed by someone more experienced may negate some of the possible benefits.

Then there is that big word, ‘overcapitalising’. This happens when your debt outweighs the value of your asset. When considering your decision to renovate it’s important to take into account:

  • Current property value and equity you have in the property
  • How your property compares with others in the area 
  • The costs of your proposed renovation
  • How you will finance your renovation

That’s where we can help. Not only do we have the knowledge and experience to help you capitalise on your financial situation to your advantage, some of us have even done it ourselves and can share our stories! We’d love to help you discover what you can do with your property – call us on (03) 8657 8664 today (or contact us here).

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. © 2021