$20,000 may not be enough for an extension, but you can get a lot of value from refinancing and making a smaller investment in your home.
For most of us, our home is the biggest investment we’ll ever make. Outside of school or the workplace, it’s also the space where we spend most of our waking hours. Refinancing your home and extending your mortgage by just $20,000 can give you a chance to make your home much more comfortable for your family and guests. And you can also make it a project that may add value if you decide to sell in years to come.
If boosting resale value is your main goal, upgrading your kitchen is definitely money well spent. Choosing from the growing number of affordable flat-pack options is a great way to make your budget stretch to new appliances, tiles, and maybe even flooring, as well as cabinets.
If you have dollars to spare from the kitchen, your bathroom could be next on your list for an overhaul. With $5,000 carefully spent on tiles, tapware, accessories and new paint you can make quite an impact on the look and feel of your bathroom. Dedicate the entire $20,000 to this room and you’ll get the complete spa experience with new windows, vanity and a freestanding tub.
3. Outdoor Space
Adding style and comfort to outdoor areas is definitely a good way to make a first impression on potential buyers. And it can increase your useable space if you transform your deck or courtyard as an outdoor room. Fire pits, new planting, lighting and furniture can all go towards creating a backyard sanctuary for relaxing or entertaining.
4. Roof space conversion
If you have an existing loft or roof space, converting it into a usable room is a win for future resale value and making space for work or play. Speak to an architect or draftsperson to start planning for your extra bedroom, a playroom for keeping toy clutter hidden, a home office or even a parent’s retreat.
5. Solar panels
If your roof is suitable, installing solar panels is a great investment. Not only will you be saving on power bills for years to come, you’re also creating a property that’s in demand with tenants and buyers. The Clean Energy Council offers up-to-date listings for approved solar panel products and accredited installers.
For any investment you’re planning, it’s important to make sure you don’t overcapitalise. With a new kitchen for example, it’s recommended you stick to a budget of 2% of the total value of your home. Always look carefully at the figures and seek professional advice from a real estate agent or specialist valuation service.
It’s also essential to protect your investment by having warranties for any trades and goods used for a new feature or upgrade. You want to be enjoying the benefits of your renovation project in the future and reap the financial rewards when it’s time to sell up and move on.
Refinancing can be an easy, low-cost way to access the equity in your home, giving you the funds you need for all sorts of renovation projects, large and small. Find out more about refinancing with Aussie.
What kind of renovation projects have you done at home? Tell us about your experiences in the comments below.