This article is brought to you by ME.
Australians spend around $33 billion1 each year on home improvements, and while reality shows like The Block provide plenty of inspiration, a good renovation should add to your home’s value as well as your lifestyle. We explain how to get maximum value from your home improvements.
Renovating can be a lot more affordable than selling up and moving.
The median home price Australia-wide is currently $655,400, meaning a home upgrade can come with a substantial stamp duty bill. In Sydney and Melbourne, where the median values are around $876,000 and $720,000 respectively2, moving to a new place can set you back anywhere from $35,000 to $38,000 in stamp duty alone. That’s cash going straight to government coffers rather than being spent on your home, and it makes renovating a very compelling option.
But with tens of thousands of dollars being spent annually on home renovations, it’s important for any improvements to increase your property’s value. Following a few rules of thumb can make it happen.
Focus on the glamour rooms – the kitchen and bathroom
The kitchen and bathroom are usually the most expensive rooms to renovate, though they can also have the biggest ‘wow’ factor. The key is to think about how you will spend your money to add the most value. There’s not much point investing in Smeg appliances, for example, if you’re going to buy low-cost cabinetry from the local hardware store. Be mindful of layout too. A kitchen is a working space, and your design should be functional, allowing for good traffic flow.
Make it visual improvements
Home buyers connect first and foremost with what they see. Adding a bespoke bath or gorgeous tiles to the bathroom can add more value than something like under-floor heating.
Natural materials add character
Building advisory service Archicentre recommends giving your home an authentic touch through the use of natural materials like stone, timber and face brick rather than using texture coated Blueboard, fake slack stone or stick-on classical features.
Make it sustainable
Following the latest trends can quickly date your home. However, one design feature that will only increase in importance is sustainability.
Including sustainable features like solar panels, energy efficient appliances and water tanks in your renovations can provide savings on power and water bills, and that’s something that will definitely appeal to future buyers if you decide to sell up later on.
Paying for home renovations
Working out the best way to pay for your renovations is a critical part of the home improvement process. The different options include a renovation loan, or using home equity to top up your current home loan.
Renovating can be a cue to give your home loan an overhaul too. Refinancing with a different loan or lender may mean securing a lower rate or better features, and any savings on your loan adds up to more money for your home improvements.
This article is brought to you by ME. For more information, please visit www.mebank.com.au. Members Equity Bank Limited ABN 56 070 887 679.
2Source: CoreLogic as at 28 April 2018
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* This information has been issued by Members Equity Bank (ME Bank). This information does not take into account your situation and you should consider if these products are appropriate for you.