Does your home need an make over?
Renovating a property is a significant decision that will add a touch of your personality to the home or add value to your property if you are looking to sell. Renovations can be expensive so it is important to have the finance sorted as soon as possible.
Why not refinance to renovate?
Refinancing isn’t as straightforward as you might expect but it may improve your standard of living or add substantial value to your property. The type of renovation proposed goes a long way to dictating the loan required. If the wrong loan is chosen, you could be left with a pile of unexpected debt. By working with a mortgage broker you will be able to find solutions that will benefit your long-term goals, rather than hindering future plans.
If after the assessment and investigation you decide to renovate, there are three types of loans to consider to help refinance and renovate your house: a line of credit loan, a construction loan or increasing your existing home loan.
Speak to one of our home loan specialist today to help you find the best solution for a great outcome.
Get bang for your buck
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. These are average renovation prices, however prices will fluctuate based on the city and suburb.
If you are a fan of the show The Block, you will know kitchens sell houses. According to realestate.com.au, the average renovation cost you should be spending on a kitchen is between $12,000 and $16,000.
The average bathroom space in Australia is six square metres. Look to spend around $9,000 – $12,000 as the bathroom is a highly trafficked space and needs to appeal to a wide variety of investors.
An extra bedroom or a deck outside both add appeal and improve the standard of living for the homeowners.
- Know your budget. Before considering refinancing, you need to have a clear idea of your budget.
- Depending on the extent of the work, renovations are likely to take over your living quarters and you may need to also consider the additional cost of accommodation for the renovation period.
- After speaking to a broker and finalising the renovation, make sure you account for an extra 10 per cent in your funds, to cover any unexpected costs.
- You should aim to spend no more than five per cent of your property’s value on renovation.
Learn some other tips and common renovating mistakes in the article below.