Renovating Your Home: Always Plan Ahead

Posted 9 months ago by Admin

As we move into December, it is officially the Summer season, and, if you haven’t already, a good time to begin some of those renovations you have been thinking about.

Considering areas outside of Wellington, such as Porirua and the Kapiti Coast, are becoming more and more appealing to investors and out of town buyers, now could be a good time to consider sprucing up your house to sell.

QV homevalue General Manager, David Nagel recently said, “values in areas further out from the city centre are now seeing strong value growth in areas such as Upper Hutt and the Kapiti Coast as buyers need to look further out to find affordable homes or investment properties.”

Whether you are looking to spruce up your house to fit your family and lifestyle needs, or, to increase your house value and then sell, it is important to consider all of your options and put a plan in place.

How much finance do you have to put into your renovations? If you need to get a loan, have you discussed this with a mortgage adviser? Will you live in the house during the renovation?

Below are some important points to consider if you are seriously thinking of renovating:

Money money:

  • It can cost a bit of money to check the feasibility of your project. For example, architect and valuer costs, but, these are well worth it.

  • Make sure you have your finance sorted and understand how the process works from a financing perspective. It’s not as simple as the banks giving you access to all the funds needed for the project, they will want to see: plans, valuations, and builders fixed price contracts covering all the work. Funds may get progressively advanced.

  • If it’s a smaller job, within the existing 80% loan-to-value ratio (LVR), then a top up may be allowed without too much hassle.

  • Speak to a mortgage adviser who will help you consider all your financial options.

Renovate to live in, or, sell for profit?

This all depends on what outcome you are hoping to achieve from renovating. Everyone’s situation is different. Whatever you are wanting to achieve, make sure you explore all options. What is the cost of trading up in the same area, compared with the cost of renovating and extending what you have?


Top areas to renovate that will add value:

Kitchen, bathrooms and think of your street appeal - what is your garden looking like? You could also consider adding another room.

So, if you are considering a big, or small renovation, discuss your finance with a mortgage adviser who will help you consider all your options. Discuss the building plans with an architect or builder, to get rough idea of the cost to do the work proposed. And lastly, talk to a valuer to get an idea of what value your proposed renovation will add. Happy renovating!

 

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