In her article this month BERNADETTE JANSON, Director of The School of Renovating continues to share her expertise on what to consider and the returns possible if looking to renovate a property before selling.
For most people, the family home represents the bulk of their wealth. Renovating before you sell is an opportunity to make a serious windfall.
The kicker is that for most people, it’s tax free. In this outline of the three possible levels of renovation you could consider, keep in mind that it assumes that you complete a cost-effective, for-profit renovation.
Level 1: Cheap and Cheerful
The home is dated but is in good condition and has a floor plan that flows.
- Budget: 2 – 4% property value
- Anticipated return on investment: Sale Price increase of up to 15%
Scope of work
General: Declutter, patch and paint throughout, replace floor coverings and possibly window dressings.
Kitchen: Replace tapware and handles if necessary
Bathroom: Replace tapware, mirror and accessories. Resurface tiles if necessary.
External: Power wash paths and driveway. Tidy garden beds with mulch and planting. Weed and feed the lawn. Paint where necessary including garage door.
Level 2: Cosmetic Renovation
The home is dated, kitchen & bathroom need upgrading but it has a floor plan that flows.
- Budget: 4 – 8% property value
- Anticipated return on investment: Sale Price increase of up to 25%
Scope of work
Kitchen: Install new cabinetry, benchtops, appliances and tapware.
Bathroom: Remove and replace tiling and waterproof membrane. Replace tapware, sanitary ware, cabinetry and accessories.
General: Declutter, patch and paint throughout, replace floor coverings, window dressings and lighting where necessary.
External: Power wash paths and driveway. Tidy garden beds with mulch and planting. Weed and feed the lawn. Render the facade if appropriate. Paint where necessary including garage door.
Level 3: Cosmetic Plus Renovation
The home is in need upgrade including the floor plan.
- Budget: Up to 10% property value
- Anticipated return on investment: Sale Price increase of up to 35%
Scope of work
A full cosmetic renovation plus a rework of the floor plan to improve flow and livability could include:
- Removing a wall between the kitchen and living rooms to make a more open plan. Creating an indoor/outdoor flow of the kitchen/living with multi-fold or stacker doors.
- Building a deck and outdoor kitchen.
- Reworking a large laundry to create an additional bathroom.
- Repurposing an obsolete dining room into an additional bedroom, bathroom or study.
- Creating an extra bedroom with in the existing building footprint.
- Installing air conditioning.
- Adding off street parking.
Whichever level of renovation you choose, managing the budget is critical. To help I have created a guide of tips and tricks to producing a champagne renovation on a beer budget.
You can download your copy here
Safe to say she lives and breathes renovating! She successfully harnessed her passion for creating beautiful homes to replace her nursing income. It has enabled her stay at home to raise her children, fund family holidays and weddings, give her young adult children a start in their property journey and fund her retirement.
Bernadette helps passionate renovators and property lovers to profit from their passion and replace their income either now or on retirement.