Renovation of a property is made with various points of view and with different expectations too. Some want to increase the value of the property, some want to extend the carpet area, some have desires to make it aesthetically appealing.
Your amount of money spends on renovation completely depends upon the reason for renovation. If you are doing for your own just to increase the look and feel of the property then it is completely fine but as a home flipper or an investor if you are renovating to increase the value of the property then you have to think about the budget first.
Know the property value first and then decide – Hire a property valuer for property valuation services and know the exact value of your property before the renovation. As property valuer suggests to spend the 6 to 9 percent of the property value on the renovation.
For example – If your house worth is $6,00,000 then you should spend 6 to 9 percent of it. That is $36,000 to $54,000.
House Valuation Brisbane suggests that – “If people are spending more than 9 percent on the renovation means they are over capitalizing the property.”
Moreover, the amount of money spent on the property renovation depends on locality and prospective buyer. If the home is in the nice or pouch area then definitely it demands some more money as buyers will look for high-quality things and brands in the home.
Ideally one should spend below 10 percent of the property in its renovation. Though people want to convert their home into their dream home so they can spend more on renovation.
Think about adding value to home through renovation – If you are a homeowner and doing renovation for your own house then you are a free bird, just check your finance and plan accordingly. But being a home flipper or investor you should think twice before bringing your renovation plan into execution. Because your purpose of renovation is to increase the value of the property. Think about your renovation plan is truly adding value to your investment property or not.
Some renovation changes like painting walls, changing floors, replacing old carpet with a new one don’t need much amount of money. But if you are planning to eliminate wall between the kitchen and living area then you need a big budget to do so. Though undoubtedly it increases the value of the property to a huge extent but makes sure you have sufficient finance to manage all this. For example – You may want to replace your kitchen’s top but it will cost you more, better you should look for the one which does the same job.
The property valuers suggest – “Choose the middle path between overcapitalisation and scrimping because this is an endless journey where expenses may touch the sky while renovating your home or property. So it is advisable to check out your renovation plan prior and make all the calculations then start renovating it.”
Contact us to hire a property valuer for the best property valuation services.