Best Improvements & Renovations to Increase Home Value (That Give ROI)

Dec 16, 2022

Renovations that increase home value, Advice that improves your property's value.

Objective: Spend $1 – Get $3 Back – Home Renovation & Remodelling Advice

The top two reasons people renovate are to make the home more comfortable and functional and to increase its value.

If you choose the right renovations to increase liveability and comfort, you may, by default, also be improving the value of your home. Just about all improvements will increase the home’s value; however, not all will give you as much return. For example, if you are renovating purely to increase the value of your sale price, you will want to ensure that for every dollar you put in, you get $3 back.

Two Reasons Why Australians Renovate and Remodel

1. Home Improvements for Liveability and Comfort

To increase liveability and comfort is to increase health, efficiency, and happiness. After all, aside from work, the home is where we spend much of our time. Whether we are entertaining, working from home, studying, relaxing, or enjoying our free time, home is where the heart is.

Common home improvements for liveability and comfort include:

• Room additions and house expansions.
• Kitchen updates.
• Bathroom remodels.
• Exterior facades.
• Decks.
• Skylights.
• New paint, carpets, and coverings.

2. Renovations That Increase the Home’s Value

When renovating a home we don’t intend to sell for some time, we are more willing to put money into features that we like or want without worrying about their return on investment.

Renovating to increase the home’s value requires a slightly different approach.
To improve the home’s value, making changes that appeal to the market is essential. Structural changes such as removing walls to create open-plan living areas are often the top choices(*1,2).

Are You Ready to Start Renovating?

Australia’s Renovation Boom Continues

Renovations that increase home value, best Advice that improves your property's value.

Australians have never been shy about picking up a paintbrush or calling in builders for their dream renovation. So, to be in a renovation boom certainly says there has been a huge increase in home improvements across the country(*3,4).

• The recent boom in new home construction and house alterations has not been seen since 1999(*3).
• Australians collectively spent just over $2.7 billion on home renovations between January and the end of June in 2022(*4).

Not sure what to tackle first to get the most return from your efforts?

Read on for our top tips, or contact us for personalised advice from our financial advisors and in-house specialist building team.

What to Renovate for the Best Return (in Comfort and Value)

Knowing what to put your money and time into can be daunting. However, if you are renovating to increase the value of your home, there are things you can get started on straight away.

Renovations that increase home value, Advice that improves your property's value. House Renovation and Remodelling Advice that give ROI

Room to Move

In decades past, Australians seemed to love having lots of small rooms and little nooks(*1). These days, open spaces with room to move are top of the renovation list. Whether this is because we all enjoy the breathing space of open areas or if, simply, our likes have evolved, open-plan living is highly sought after.

Flow

The flow throughout a house, from the front door to the kitchen, bedrooms and back garden, can improve not only the value of a home but the home’s level of comfort(*2).
In addition to structural flow, colour schemes and styles that roll seamlessly into each other also help to create flow and a sense of calm.

Colour

Keeping colour schemes clean and simple is often the best choice if you intend to sell. This allows potential buyers to better visualise what they will do with the space to make it their own and will ensure the home doesn’t date. According to Taubmans, current colour trends that are set to continue are natural hues. Look to the backyard, garden, beach, and sky for inspiration(*6).

For every dollar, you put in, ensure you are tripling your investment. Talk to the professionals at Mentor1 Property before you start renovating.
Call: 1300 765 811.  Email: info@mentor1property.com.au

References

*1. Mentor1 Property. Home Renovation Advisor - 1 Minute Mentoring Series. Sydney, NSW. YouTube video. 2022. • Waste management rubbish.com.au
*2. Architectural Digest. This Newly Designed Addition Brings Flow and Calm to a Minneapolis Home. 2022. • Real Estate Signage absolutecolour.com.au
*3. ABS. New house and renovation approvals continue to rise in November. 2020.
*4. ABS. Building Activity, Australia. 2020.
*5. Domain. 181 Long Street. 2022.
*6. Taubmans. Colour Trends 2022. 2022.