FinancialPlus

A smart renovation can add thousands to your property if you set a solid plan from the outset.

Renovating is a national pastime – just one look at a TV guide and the plethora of shows dedicated to renovating will instantly highlight this. The process of turning an old house into a new one is engrained in the Australian culture. But while renovating a property can add significant value, there are numerous issues that need to be considered before you start knocking down walls or ripping up carpet.

As well as making your home more liveable, the number one driver for renovating a property should be to add value. Here are a number of key points to keep in mind to get the biggest bang for your renovation dollar.

Be smart

Often the things that add the most value to a property can be done on a shoestring budget. By simply applying a coat of paint, replacing the carpet, undertaking a bit of landscaping or adding new light fittings; an old property can have both life and interest breathed into it.

Set realistic budgets

It is crucial that you set yourself a budget before you begin renovating. It is not a matter of simply estimating the overall costs; you have to sit down and plan it out based on research, strong costs analysis, and most importantly, appreciation of what types of renovations add the most value.

When you are accounting for your renovation costs, build a buffer of at least 10 to 20 per cent into your budget as very rarely do renovations go off without a hitch. Even professional renovators underestimate costs, so be conservative with your forecasts.

Know your target area

Before you start your renovations, get to know the style and structure of other properties in your area. By understanding the type of people that are likely to buy in your area can you style the property to suit the majority.

While you might be renovating with view to live long-term in your property, keep any changes modern and contemporary – don’t be too outrageous with your design. What you might find appealing and attractive others might think otherwise. This may therefore impact the price you receive should you sell the property or decide to let it out.