A few things to consider before you renovate your home!
Firstly, think about what it is you want from your renovation. Are you trying to add space? Are you trying to avoid moving costs? Do you want to maximise the value of your property, or are you trying to add value to your investment property so you can potentially obtain more rent?
Whatever the reason, there are things you need to consider, and hopefully the information we provide will help.
At Lime Mortgage Brokers, we understand that renovating your home can be a major financial decision. Whether you are renovating to improve your lifestyle, add space or potentially increase the value of your property, having a clear plan and understanding your finances can help you approach your renovation with greater confidence.
Sit down and take some time to think about what you want from the renovations and make sure the end result will meet your goals.
Table of Contents
What Do You Want From Your Renovation?
Before you start, think carefully about why you are renovating.
If you are trying to avoid the costs of moving and you love where you live, make sure your renovations will provide lasting benefits that suit your lifestyle and your family’s needs. Otherwise, you may still have to consider moving later on down the track.
Think about how your family uses the home now and how your needs may change in the future. Adding extra space or improving the layout can make your existing property better suited to your lifestyle.
Renovating to Sell Your Property
If you are thinking about selling your property immediately after you renovate, make sure you consider current trends and design the renovations to have broad market appeal.
You don’t necessarily want to design everything around your own personal tastes if the goal is to attract potential buyers.
If you want to increase your property’s value and get it ready to go to market, consider using neutral colors and designs that appeal to a broader range of buyers.
Why not take a look at display homes for inspiration? This can help you understand current design trends and see how different spaces and finishes work together.
Renovating an Investment Property
If you are thinking about getting a return on your investment and increasing your rental price, make sure you consider what is most likely to appeal to your tenants.
The goal is to improve the property without overspending on features that may not provide a worthwhile return.
Otherwise, you can run into the trap of spending too much without achieving the financial goals you had in mind.
It can be useful to speak with a local real estate agent to get an idea of what tenants are looking for in your area and whether the renovations you have planned could potentially improve the property’s appeal.
Will Your Renovation Add Value?
Why not have a chat with your local real estate agent to make sure the renovations you have planned could increase your property’s value or at least provide benefits that justify the cost?
This is particularly important if you are planning to live in your property for the next few years.
Not every renovation will add as much value as it costs to complete. It is therefore important to consider the potential return before committing to major work.
If you are unsure of your property’s current value, you could also consider getting a property appraisal before starting your renovation.
Assess Your Renovation Budget
Now it’s time to assess your budget and identify all the costs involved.
Taking all the costs into account at an early stage can help you avoid unnecessary financial pressure. The last thing you want to do is throw your budget into chaos and end up searching for extra money halfway through the renovation.
Consider the cost of materials, labour, permits, professional services, waste removal and any other expenses that may be involved.
It can also be worthwhile allowing some room in your budget for unexpected costs. Renovation projects do not always go exactly according to plan.
How Can a Mortgage Broker Help With Renovation Finance?
To help set yourself up financially and determine how much you can spend without putting unnecessary pressure on your finances, consider consulting a mortgage broker.
Depending on your circumstances, refinancing your home loan or accessing available equity may be options worth considering when funding renovations.
Mortgage brokers work with a variety of lenders and can help you understand the finance options that may be available based on your circumstances.
At Lime Mortgage Brokers, we can discuss your plans and help you understand your potential borrowing options before you start your renovation.
Should You DIY Your Renovation?
Taking the DIY approach can save on some costs, but it can also have some downsides.
We all love tackling things ourselves around the home, but DIY can be difficult, and you really need to know your limits.
Make sure you recognise your abilities and only take part in projects that you know you can complete around your home to a good standard.
Things that may seem simple can actually be much more complex than you think. You may also need to purchase expensive tools and equipment to complete the job.
Calling in a professional to fix failed DIY attempts can sometimes be more expensive than having the right person complete the work in the first place.
Time also needs to be a factor. Doing it yourself can take considerably longer than having an experienced professional do it.
You should also remember that if a job is not completed correctly, it could have a negative effect on the value of your property.
Before you take the plunge, make sure you weigh up all the pros and cons.
What Should You Renovate First?
Before you start, think about what changes could provide the greatest benefit to your property.
Will it be the kitchen, bathroom, or outdoor area?
These are generally important factors people consider when looking at a new home. Improving these spaces can potentially make your property more appealing, whether you are renovating for yourself or preparing to sell.
If you are not sure what changes could add value, talk to a local real estate agent and consider getting an appraisal on your property.
Get Inspired Before You Start
And then for the fun part, you can start creating a mood board, collecting samples and drawing up designs for your new home.
Scour magazines and books for inspiration. You can also look for ideas on Pinterest and search for the latest trends.
Another option is to visit home opens and display homes to see different layouts, finishes and design ideas in person.
Pick one or two items that are really important to you and mould your design around these. Having a clear starting point can help keep your renovation focused and prevent you from making too many changes along the way.
How Can Lime Mortgage Brokers Help?
Renovating your home can be exciting, but understanding how you will pay for the project is just as important as deciding what you want to renovate.
At Lime Mortgage Brokers, we want to provide you with valuable information to guide you through the loan process and beyond.
Depending on your circumstances, refinancing or accessing available equity may be options to consider when funding your renovation.
You can also meet the Lime Mortgage Brokers team to learn more about our team and mortgage broking services.
Contact Lime Mortgage Brokers Today
If you are planning a renovation and want to understand your finance options, it can be helpful to speak with a mortgage broker before you begin.
The team at Lime Mortgage Brokers can discuss your circumstances and help you understand the lending options available to you.
Contact Lime Mortgage Brokers today to discuss your renovation plans and home loan options.
Frequently Asked Questions
What should I consider before renovating my home?
Start by deciding what you want to achieve from the renovation. Consider your lifestyle, budget, property value, future plans and whether the renovation is intended for your own use or to prepare the property for sale.
Can renovating increase the value of my home?
Renovations can increase a property’s value, but there is no guarantee the increase will equal or exceed the renovation cost. It is important to consider the local property market and the type of improvements buyers are looking for.
Should I renovate before selling my home?
It depends on the property and your local market. Some renovations may improve the property’s appeal, but it is important to consider whether the potential increase in sale price justifies the renovation costs.
Is DIY renovation cheaper?
DIY renovations can reduce some labour costs, but you need to consider your skills, available time, equipment and the complexity of the work. Mistakes can sometimes result in additional costs if professional repairs are required.
Can I use my home loan to pay for renovations?
Depending on your circumstances, you may be able to access available equity or refinance your existing home loan to help fund renovations. Your borrowing capacity and lender requirements will need to be considered.
Which renovations can add the most value?
Kitchens, bathrooms and outdoor living areas can be important features for many buyers, but the potential value of a renovation depends on the property, suburb and local market.
Should I speak to a mortgage broker before renovating?
Speaking with a mortgage broker before starting a major renovation can help you understand your potential finance options and determine how the project may fit within your overall financial position.
Conclusion
Renovating your home can be a great way to improve your lifestyle, create additional space, or potentially increase your property’s value. However, it is important to have a clear goal and understand the costs before you begin.
Consider what you want from the renovation, whether the improvements are likely to add value, how much you can realistically afford, and whether you should complete the work yourself or use a professional.
If you are considering financing your renovation, speaking with a mortgage broker early can also help you understand your options before you commit to the project.
Here at Lime Mortgage Brokers, we want to help you make informed decisions and provide valuable information to guide you through the loan process and beyond.
“Our knowledge and experience is yours.”
Shawn Swart
t. 0415 761 799
e. shawn@limemortgagebrokers.com.au
w. www.limemortgagebrokers.com.au
Disclaimer
The information contained on the Lime Mortgage Brokers website and in its posts is for general information purposes only. Lime Mortgage Brokers assumes no responsibility for errors or omissions in the contents of this publication. The information we provide may not be relevant for all individual circumstances. You should always seek professional advice before taking action in relation to any of the matters discussed in this publication.