If you’re like most people who own properties—unless you’ve purchased a custom new build—you likely have a room, or two, in your home that you’d love to renovate.
Have you ever wondered what room would be the best to renovate from an investment perspective?
You may have a room that absolutely needs a facelift, but is it a room that will provide a high return on investment should you ever resale your property?
The Reno Chick, Cathy Morrissey, offers up her expertise, but her answer might surprise you. She’s managed seven renovations, each of which have returned a six-figure sum, and according to Morrissey, it’s actually the front yard: your outdoor room.
Morrissey states that if you can’t make a great impression with prospective buyers in the first 10 seconds, you won’t have a chance.
While the front yard can attract or deter home owners, investors aren’t as concerned, says Morrissey.
Investors already view a property from the mindset of what they can do to improve it for home owners, but owner occupants need to be wooed by curb appeal.
Morrissey suggests that even if you spend a little to touch up the front yard, it’ll bring the highest return on your expenditure.
If your renovation budget is $500 or less, Morrissey suggests the following:
- Mow the lawn and trim hedges and bushes
- Remove rubbish and existing dead plants
- Clean the concrete and pull weeds from any cracks
- Add fresh mulch and plant some new plants and flowers
- Paint the front fence or porch
If you own a smaller property, you can also liven up the space with an attractive vertical garden.
Morrissey says that she spent $6,000 to refresh the front of a property, and she made $105,000 in profit from the project.
High Returns from Kitchen Renovation
Tom Hall, a Melbourne renovator, suggests that renovating the kitchen in any home will provide the best return for your investment.
He notes that it’s probably one of the most expensive rooms to renovate, but, if you have the budget, it offers one of the highest returns. He further elaborates by saying when potential buyers see a new kitchen, they see a lot of work they don’t have to do, because it’s already been done for them.
Hall offers the following tips for saving money on a kitchen renovation:
- Do not over capitalise and stick to a realistic renovation budget
- Buy package appliances, such as: oven, cook-top, and range-hood
- Choose flat packed kitchens and do the installation yourself
- Select brands that match your target market
Hall advises that in the current Melbourne market, a seller can get up to five times the investment in a post-renovation valuation selling price from a kitchen renovation.
According to Cherie Barber from Renovating for Profit, the kitchen is also the most important room.
Another really important room, she suggests, is the bathroom.
Big Returns for Bathrooms
Justin Lilburne from JPP Buyers Advocates says updating the bathroom can provide a big return on investment as long as sellers leave the toilet, shower, and sink in the original location to minimize how involved the renovation is.
Lilburne suggests that a quick renovation with a budget of $5,000 to $10,000 could yield a return on investment of $30,000 to $40,000.
Due to the level of involvement and intricate electrical or plumbing work involved in kitchen or bathroom renovations, however, it’s often best to leave the larger projects to the experts rather than do it yourself, unless you’re the real savvy D.I.Y. type.
After reading this, which room would you renovate? Do you agree with the experts? Let us know in the comments.
If you have questions about how a renovation project might impact the resale value of your property, contact us to speak to a qualified real estate agent. We’d be happy to offer advice and provide a pre-renovation and post-renovation valuation.
You can also check out our blog for more helpful tips and information.