Government stimulus gets renovators excited
A $25,000 grant is available to owner-occupiers renovating or building a new home courtesy of the Federal Government’s HomeBuilder stimulus package that was announced on 4 June.
The means-tested HomeBuilder grant targets middle income earners and applies to new homes and major renovations valued between $150,000 to $750,000.
The pre-renovation value of the house must not exceed $1.5 million and excludes sheds, pools, granny flats and any other structures not attached to the property. The temporary scheme lasts until the end of 2020.
If you are thinking about a major renovation with a view to selling the property, put some effort into researching what property features are popular in the same marketplace. Tap into the experience of local real estate experts and find out the renovation projects that are likely to yield best resale value.
In 2020, doing a kitchen remodel remains at the top of the list of the most desirable updates. Other lucrative remodels to consider are building a home addition, roof replacement, siding updates, and new windows. While the bathroom reno is almost as popular as the kitchen overhaul, do not discount the value of adding a new bathroom.
Last year, renovation costs per square metre averaged between $2000-$4000. Your post code can determine just how cheap or expensive your renovation will be. One of the biggest costs is labour and hourly wages, which vary from state to state.
An ‘average’ kitchen renovation might cost you around $20,000 but you can easily double that and more depending on what you choose in cabinetry, benchtops, tiles, appliances, etc. A tap might cost you $70 or $300+. Budget more if you want to install an undermount sink, and expensive plumbing may be required.
A bathroom renovation might range from $10,000-$35,000 and can easily go higher if you lean towards luxury. Your new roof might cost $10,000 or $20,000.
These days the outdoor area is an extra room, an all-weather extension of the house, and money spent on a well-designed all-weather area is generally worth it when it comes to sale time. Garden and deck renovations can greatly enhance your outdoor space, and research suggests that good landscaping might add 11 per cent to a property’s perceived value.
Let’s say you are building a home addition of roughly 75 square metre, typically a including a kitchen, an office, or bedroom and a bathroom. You might expect the total cost to be $150,000-300,000.
It has been estimated that a major renovation might add up to 10 per cent of the value of your home, particularly if you hold on to the property for at least five years.
Good advice BEFORE you begin:
- Analyse your property: location, buyer demographic, market value, size and style.
- Ask the experts: Is there a market for the fully renovated?
- Compare like for like: What are home similar to your post -renovation selling for?
SOURCE: RE/MAX Australia
