Why Should You Renovate Your Home?

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Home is where the heart is, and you want a home that is yours in every way. Whether you have lived in your home for several years or just moved in, your living space should reflect your family’s interests and needs. With a home renovation, you can take your house and turn it into the home you’ve always dreamed of.

Your home is much more than just a house. It is one of your most significant investments and should be a comfortable place where you enjoy returning. If your home is not giving you the satisfaction that it once was, it might be time for some home renovations. Having the opportunity to improve, redesign, and redecorate a home can change your mood about it very quickly. 

If you’ve been toying with the idea of renovating your kitchen or bathroom, but you keep making excuses as to why you don’t want to go forward with the project, then keep reading this list. Here are reasons why you should ditch the excuses and finally renovate your home.

Why Renovate? 

Firstly, you can add thousands of dollars of value to your home with carefully considered renovation. Many thousands, in the right circumstances. You can even handle it yourself if you’re genuinely intent on cutting costs and devoted to being especially cautious (as we’ll cover, renovation can be a dangerous pursuit for the DIY set).

Secondly, there are more than a few financial options available to you when you’re looking to renovate your home or investment property (renovation can help speed up the process of recouping a property investment if done correctly). If you’ve managed to afford a house and a home loan, you can afford to renovate a house.

In the end, you’ll hopefully see that there’s no reason you can’t reap the rewards of renovation with your own home. At MJS Construction Group, we have the best dual occupancy selection to make your house a dream come true.

There are many reasons to renovate your home – not least to make it a quieter and more comfortable place for you and your family to spend time together. A haven to kick back and relax after a long day. A hub to gather with friends and relatives to celebrate good times. But updating your home has many more benefits beyond customising the interior décor to your tastes:  

Increase Property Value

Increase Property Value_DibicoRaising your property value is the most significant benefit of renovating your home. A newer, more efficient, and prettier home will quickly attract more prospective homeowners and higher offers than an outdated home. From a buyer’s perspective, the more recent upgrades you give your home, the less work is required for a new homeowner. By remodelling your home to make it bigger, increase functionality, or improve the aesthetics, you can ensure improved curb appeal and a greater return on investment.

Customise Your Home

Every family has its own needs, which change as your family grows and ages. With a home renovation, you can facilitate your lifestyle with a living space that meets your requirements. Add additional space to accommodate your growing family. Indulge in family fun with a pool, home theatre, or private ice rink. Upgrade your kitchen, bathroom, or laundry room to improve your way of life. You have already invested in your home, so why not customise your space to fit your needs and desires?

Save on Maintenance and Utility Costs

Save on Maintenance and Utility Costs_DibicoYour home is made of individual parts that deteriorate with time and use. As your house ages, the cost of living increases. Your home’s energy consumption increases as your appliances age and loses efficiency. Minor problems require money and attention to fix, a price that increases the longer they are left untended. Renovations can resolve these issues before they grow, improve your home’s functions, and decrease the amount spent on maintenance and utilities.

Increase Comfort

For you and your family, a home is a safe place. You spend a majority of your time there, and your walls have witnessed most of life’s significant milestones. When you walk into your home, you want it to be a space that reduces stress and improves your mental and emotional well-being. By renovating your home, you can design a living area that offers the utmost comfort and safety. Your remodel can also improve your home’s functionality, making home life more convenient and giving you more time to focus on the things that matter.

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What Should You Renovate?

As we’ve said probably too many times already in this article, renovations can add a great deal of value to your home. But, we should be clear. They need to be the right renovations. Otherwise, they could easily make your home less valuable.

(You get no points for aspirational renovations. That verandah you never felt like finishing. For example? Not as valuable as you might hope.)

That said, you might want to renovate without any intention of ever selling. You may want extra space or a more excellent area. But, if you are thinking about renovation (particularly if you’re thinking about taking out a renovation loan), it doesn’t mean you can’t be clever about your renovation. Why not ensure that the extra space you want is as valuable to you monetarily as it is to your comfort and lifestyle needs?

So, with that in mind, what renovations should you make? Well, as a suggestion, you could try:

Tidy Up The Front – a lot of renovations are more about perceived value than the actual value. This is a classic example of that phenomenon. Suppose you’re willing to put some serious effort into cleaning up your garden, washing and repainting your house’s exterior, fence and letterbox, giving your roof and gutters a bit of a clean and just generally adding a bit of TLC to your property. In that case, you can potentially add more than $40,000 to your home’s value.

Add An Outdoor Area – whether it’s a deck, verandah, patio or terrace, an outdoor area is a guaranteed way to add value to your property. The cost can vary (particularly if you’re construction-savvy enough to do a decent job on your own), but you will almost always see a significant return on your investment. Some experts estimate it adds up to $10,000 to a home – others go so far as to say $100,000. Just remember – to be of most excellent use and value, your outdoor area should be a natural outgrowth of your existing home or property. It should be a similar style and extend from a communal area, not a bedroom or private area.

Improve Your Kitchen & Bathroom – universally considered focal points of interest for prospective buyers and tenants, revamped kitchen and bathroom areas can make a subtle but crucial impact in adding value to your property. You can update these areas in a range of ways – from simply adding a splashback tile arrangement to your kitchen to completely refurbishing your bathroom to throwing a coat of paint on both. Just be careful not to over-invest. Like your outdoor area, your kitchen and bathroom renovations should be a natural part of your house. You shouldn’t have a kitchen that’s worth more than the rest of the house, in other words.

Add An Extension – an extension is probably one of the most significant ways to add value to your home. If you add a second storey, a new bedroom, a new bathroom or a new garage (or some combination of the above), you not only can add value to your home – you can completely change the overall pricing bracket agents, and buyers view in your home. In this regard, you do need to be careful not to over-invest. If every home in your street is 2-3 bedrooms, for example, most buyers looking in that area will be in the market for that size home. But, while being aware of those concerns, you can still add significant value to your home with a new bathroom or a new garage. A 2012 survey of Australian estate agents found that a second bathroom is one of the top prerequisites for homebuyers in Australia.

These are just some options, of course. You can also consider hiring a landscaper or concrete rendering over your house’s old brick stylings to modernise it. Whatever you do – make sure you’re aware of how much it’ll cost and how much it’ll add to the value of your home. If in doubt, speak to a real estate agent about it. Looking for dual occupancy? Look no further! MJS Construction Group has you covered. 

Should You Renovate Your Home Or Move?

There are various pros and cons for both, and the correct answer for you will depend on why you need to make a change and what you want to get out of your property. If you’re looking to renovate, make sure you’ve thought through all the impacts it may have on your life and finances, especially when compared with moving.

Benefits of Renovating

  • If you’re happy with where you live, renovating means you’ll stay in the exact location. You can, of course, try to buy another property close by. This may limit your options – and cost quite a bit more.
  • You avoid the costs that come with buying a home, such as a stamp duty and legal, registration and real estate agent fees.
  • You may increase your property’s value with the renovations. And you don’t necessarily need to renovate on a big scale – even small changes can make a big difference.
  • Avoid the stress and hassle of moving.

Things To Consider Before Renovating

  • If you’re not completely happy with where you live, no amount of renovations is going to change this
  • It can be easy to underestimate the cost and time involved in renovating. Make sure you’re across all the necessary details and have both a financial and time buffer in case things don’t go to plan
  • You may not be able to carry out all the changes you want to make to your property due to its current condition. A building and pest inspection can help you make sure you won’t be stopped by things like dry rot and white ants
  • You may have to live in another property while the renovations take place

How Do I Afford It?

Of course – none of that matters if you can’t afford to pursue your dream renovation project, which brings us back to what we were wrestling with at the start. Is renovation too much of a luxury? Could you ever afford it? And, again, we’re going to emphasise. There are several different ways that you can fund your renovation.

For example:

Refinance Your Existing Home Loan – if you’re currently successfully paying off your home loan (and especially if you’ve been doing so for a couple of years), you may want to look at simply re-working your existing loan arrangement. There are a handful of ways to do this, depending upon your circumstances.

Firstly, you can apply for an increased loan amount. This will be placed on your existing loan rather than existing as a whole new loan. Different lenders will refer to this using additional terms. Some will call it a renovation loan. Others will describe it as a top-up. Ultimately, it amounts to the same thing. Your loan increases, and you use the additional funds to renovate your home.

Secondly, you might be in a position to take advantage of some existing features of your home loan. Specifically, cashback/redraw. If your home loan supports cashback/redraw and you’ve been making additional repayments to your loan, you might be able to withdraw that extra money and use it to fund your renovation project.

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Finally, you may want to speak to your lender about refinancing and changing your home loan’s nature. For example, a credit loan line allows you to use your home loan like a credit card account. If you refinance and change your loan to a line of credit loan, you can easily use it to pay for your renovation.

Your ability to pursue most of these options will, however, depend on your current equity with your property. If you’ve paid off a substantial amount of your loan, you’ll be in a better position to make changes to that loan for renovation purposes. If not, you may need to consider other alternatives.

Construction Loan – a construction loan would be an example of another alternative. A construction loan is typically used to fund a whole new house, but it can also be used to renovate an existing property. A construction loan is based on the final value of your post-renovation home. (So, in this instance, you’ll have to be sure your renovations are adding value to your property.) You’ll draw on the funds with a construction loan as you need them to pay for respective materials and services (rather than receiving them as a lump sum).

Personal loan – many lenders offer both secured and unsecured personal loans for limited amounts of money. If you’re DIYing and only need a small amount of money for materials, you may want to consider a personal loan. However, even if it’s only a tiny amount, you’ll probably still want to secure it against property, assets or term deposits. Otherwise, you’ll almost certainly be expected to pay a higher interest rate.

Credit Card – it’s entirely possible to fund your renovation via credit card. However, it’s not especially advisable. If you aren’t in constant control of your repayments, you could quickly end up spiralling deeper into debt and paying significantly more for your renovation than it is worth. If you intend to use a credit card, be strategic about it – plan your repayments in detail and take advantage of interest-free periods.  Finding the right Melbourne home builders  is an important decision. Check out our range of the best home design constructions at MJS Construction Group.

Overdraft – an overdraft is a feature of some savings accounts wherein, when your balance hits zero, you can continue withdrawing money up to a specific limit (which you then repay with interest as you would any other loan). The advantages of an overdraft are that it can be (relatively quickly) be added to your existing transaction account, and you will only ever pay interest on the specific amount of money you’ve spent on your renovation. The disadvantage is that, like credit cards, you can end up spiralling into deeper debt if you don’t manage your funds with care.

If you’ve been thinking about renovating your home for what feels like forever, then it’s time to stop wishing and to start doing. There’s never going to be a time when your schedule and finances are “perfect” for a home renovation project. But the longer you put it off, the less time you get to enjoy in your beautiful, newly renovated home.

Hopefully, these reasons will convince you once and for all to stop talking and start turning your renovation dreams into reality. A home renovation project will completely change how you feel about coming home for the better.

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