When renovating your home there will be a return on every dollar you spend, but the return differs depending on what you are doing.
Some renovations have a high return, like adding another room to your home or expanding and altering a living area. When you turn a three-bedroom home into a four bedroom home, you are likely to vastly increase the value of your home.
A premium kitchen or bathroom renovation, or an alteration that gives better indoor/outdoor flow will add considerable value to your home, but they have a higher cost as well. This is where you must consider what you plan to do, its cost and what it might add to the value of your home.
Particular renovations or alterations can have a negative impact on the value of your home. This depends on the amount you plan to spend and the property values of the area you live in. One example is a swimming pool – they are expensive, they require constant maintenance and have a danger factor for any home where young children are present.
What a lot of homeowners don’t realise is that you can also overcapitalise on any renovation or alteration project. It may be worth talking through your plans with a registered valuer to ensure that you are investing in the right areas.