Thinking of Renovating? A step by step guide to remove some uncertainty.
Tips on Renovating your Home.
The decision to renovate can be a big one for homeowners, who can spend months weighing up the benefits and costs.
Whether your motivation is to add value to your property or to add space to accommodate a growing family renovations can be expensive and stressful.
By working with a skilled broker you will be able to find solutions that benefit your long-term goals, rather than hindering future plans.
A recent survey found only 27 per cent of homeowners think refinancing their home loan to renovate is a feasible option to raise funds for the next big step.
In this survey, 93 per cent of homeowners who refinanced to renovate, said they had concerns over whether they would be able to afford the repayments, and whether the proposed renovation would add value to the property.
While your broker can’t assist you with forecasts on future property values, we can help you reassess your current financial position, run through your plans and future payments, and decide if you can afford to take on more commitments.
Laying the foundations
With us in your corner, the next step is to investigate how much you need to borrow. Work out the specifics of your renovation, what the average cost to renovate is in your area and how much you are eligible to borrow.
If renovations are likely to take over your living quarters you may need to also consider the additional cost of accommodation for the renovation period.
Builders and Architects
Depending on the size of your renovation, it’s often well worthwhile gaining the expert opinions and assistance of a reputable Architect and Builder to pilot you through the journey.
If they have worked together before, that’s even better.
Ask for a portfolio of work, check out reviews and ask for recommendations.
The main thing to remember is you don’t know what you don’t know and being halfway through a build with an untrustworthy contractor can mean costs and timelines blow out and stress levels follow suit.
Best Value Strategy
Once you decide to renovate, if you are trying to add value to a house to resell, it is important to look at the rooms and areas that will add the most value. Below are average renovation prices, however prices will fluctuate based on the city and suburb.
- Kitchen: If you are a fan of the show The Block, you will know kitchens sell houses. It’s wise to budget accordingly.
- Bathroom: The average bathroom space in Australia is six square metres. Look to spend around $9,000 – $25,000 as the bathroom is a highly trafficked space and needs to appeal to a wide variety of investors.
- Other areas: An extra bedroom or a deck outside both add appeal and improve the standard of living for the homeowners.
- Space and Light are key to the ambiance and the emotional reaction of those inhabiting it. Make the most of it.
The final hurdle to look at is the council fees. They can be steep so it’s worthwhile knowing these ahead of time. After speaking to us and finalising the renovation budget, make sure that you account for an extra 15 per cent in your budget, to cover any unexpected costs.
Deciding on the type of loan
If after the assessment and investigation you decide to renovate, there are various types of loans to consider to help refinance and renovate your house:
- Total Re-finance make-over
- A line of credit loan,
- A construction loan or
- Increasing your existing home loan.
It’s our role to present the options to you.
Many times the a new loan re-structure that better suits existing circumstances can be tailored so that the re-payments are the same or similar to existing ones.
However, every household and property is different, as are the funds needed to achieve a renovation.
Let us help illuminate your path to your Dream Home. Make contact today.
Steve Daley CEO