and Add Value
Renovating your home can be a cost-effective
alternative to selling your home and buying a new one. Money
saved on property stamp duty and conveyancing for a new home
can be used towards renovations and save you the trouble and
expense of moving. It can be a rewarding experience, adding
comfort and value to your home.
Spending money on wise-renovating is another
way of building equity in your property.
However, before starting, questions you should
ask are – will you be adding value or will you be over-capitalising?
Will you be better off selling?
So that there are no nasty surprises, it
is best to get firm quotes from tradespeople or builders.
Depending on the size of the renovation, builders will usually
add a margin for contingency, which is an allowance for a
variation from the price quoted.
If you are undertaking any structural work,
you will need plans and council approval.
Home-owners are often faced with cost blow-outs which is why
most lenders insist on fixed price contracts to ensure that
when you embark on your project, it is completed within budget.
It is also wise to budget for the unforeseen.
Problems such as old and potentially dangerous wiring, rusty
plumbing and other defects cannot be detected until your tradesperson
or builder starts on the project exposing these problems.
If you have not undertaken a renovation before, make sure
you do as much research as possible. You may want to use the
advice of an architect, interior decorator and visit your
local building centre. Advice from your local council can
be very valuable even if you don’t need a building permit.
Tip: When selecting a builder,
ask for references and if possible, inspect previous building
projects that your builder has completed. It’s also
important that they hold the required insurance and belong
to the relevant industry association. Contact your local building
association for information on registered and qualified builders/
tradespeople in your area.