What improvement/renovation adds the most value to a house?

[Property Dude]

What renovations have you found to add the most value to a residential home relative to the cost of the renovation?

I guess it will vary depending on whether the house is timber or brick. I'm sure there are other variables such as location etc.

So let others know what has worked for you.

I just had my timber home painted, spent around $15K and I am sure I have added at least 25K-30K onto the value of the property.

Please share your renovation success stories! :)

[kincella]

Couple of years ago I bought this dear little Victorian Cottage...it had been unloved for years...probably rented out...hint = there was no garden...
I painted the exterior, put up a picket fence ( in line with that era ) established a Vic garden...white roses and hedges, added a paved path, fixed the roof then painted it.....the colour scheme of the exterior was soft cream with grey and soft purple highlights....
I pulled up the carpet and polished the beautiful murray pine floors underneath, added airconditioning....
I had no intention of doing a full renovation...ie upgrade kitchen and bathroom etc....
I did not intend to hold the property for too long,, it had a huge backyard...it was in a terrific location....I thought by giving it street appeal....it would also allow the new owners to extend and renovate to their choosing....
I spent less than 20,000 but the agents who knew the property said it added at least 50,000
When I eventually put it on the market....(agents had been harrassing me to sell for months...in the boom time of 2004) there was an offer the first day, and yes this couple had been looking for this type of property, they intended to do the big extension etc...

Generally I buy period houses, usually require an update for the kitchen and bathroom, all have required air conditioning, and a new roof...and I do a garden makeover....as a rule I just add the cost of the makeover....
I keep everything that is important to the period style, door handles, door styles, trims etc...except the kitchen and bath are very modern...
I do not spend more than is necessary...ie do not go over the top with the cost...eg gold plated bathroom fittings etc....
most of the houses have been modest...middle income styles...so you retain the style with the cost associated with it...
I have one old house, and built a new replica of it , with its own street frontage, in the back yard...it was on a corner block...the only difference between the two, is the old house has one extra bedroom .....
recent valuations have only 20,000 difference between the two....
but the new house has a stunning big kitchen . dining, open living area...and a garage...versus the old a carport only.....
I would have thought, since the new one has a more appealing interior design, together with the garage..the difference in price should be more like 50,000
Am about to put a new roof on the old house, and would expect the costs to just add value...but not add a profit...
There may be an agent who can explain the difference..??
cheers

[Wildkactus]

The upgrades that are giving me the best returns at the moment are the street appeal upgrades. This has been due to the drive by revalues the banks have been doing for loan revalues.

All we have been doing is making sure that the house stands out in the street.
adding full gardens and little things like glass hand rails, and front proches.
Have been spending 5-10K to get 30-50K increase in value.

The front gardens are been maintained by a contract gardener, this helps to keep the street appeal, also my tenents like the less work.

in the past I have found that a kitchern / bathroom upgrade or adding a new bedroom have been good as well.

[Property Dude]

I got the exterior of my house painted recently and it looks great. I had to dip into the line of credit to get it done but it was definitely worthwhile as it has dramatically improved the street appeal. It has also improved my quality of life in the sense that I now enjoy being at home a lot more and find myself doing other little improvements to the house both inside and out.

Things to watch for when getting the exterior of your house painted:


Ensure to the best of your ability that the painter is well qualified for the job. Be sure to check out other residential properties he has painted.
Get it done right! It cost me about $13,000 to get it done and it took about a month for it to be completed but it's a great job and looks fantastic. Insist on an oil based undercoat and then two coats on top of that.

[kincella]

..all the above are the best ideas.....
now I am looking at taking up some incentives on offer...and the tenants should love the savings they will receive in running costs
am now looking at putting in solar panels and solar HWS on all the houses....and 2000lt water tanks for the gardens...
I am guessing it will cost around 11,000 plus per house...
7000 for 6 solar panels, 2200 water, and 1600 for hws...less any state rebates...
Origin electricity sent me a brochure...you pay half now and the rest interest free over 2 years....sounds like a good deal and one can save 50-80% of the costs of electricity pa....
depends which area...Brissy and Qld probably 80% as more sun, Syd 65%, Melb 50%
and the govt has a 10,000 interest free Green loan...
anybody here done any of the above ???
ps Origin deal is for 100klm radious Melb metro only...but am sure competitors will match or better it.
my tenants shoud love the deal


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The owner of McDonalds once asked Harvard students if anyone knew how he made his money.
They answered easy, making hamburgers.
No he replied. I own the best real estate in every capital city in the world>***
__________________
Property Investor in Commercial and Residential. I hold for 10 years or the mv reaches my sell figure.

[kincella]

the rebates available are.... solar electricity about 7000-8000 depending on what is installed....so net cost to you about 3000, rebate of 1600 on the solar HWS....and rebate of 500 on the water tanks....total rebates about 10,000....net cost after offsetting the rebates..or refunds is about $3500 per property:biglaugh:
if you are a handyman you can save stacks by buying and fitting the solar panels...then just pay for the installation by accredited installer.....see the link below....
and there is an interest free Green Loan...to pay for all the above....
http://www.environment.gov.au/greenloans/households/eligibility.html
http://www.solaronline.com.au/solar-panels

[R&P]

Some Tips for Reno Improvements that ADD THE MOST VALUE...

1. Firstly- CHANGING THE PROFILE of the place... is a great way to add value, So one way you can do this is by adding an extra bedroom for example. If you want to see how this has been done there was a great article on this in The Australian Property INvestor Magazine Feb 2009, Ana spoke about this favoured technique.

2. First Impressions- so updating through cosmetic improvements such as a paint job, carpets etc has been show to be a quick & easy way to add value (good investment tip when renovating to sell for a profit)

3. Also for some real life case studies on this very topic, check out the website and you can see what others have done. And get some valuable ideas to make your renos a success story!!

Hope this helps! All the Best

[MelbKate]

What renovations have you found to add the most value to a residential home relative to the cost of the renovation?

PD, definitely floors and kitchen renovations. Replacing carpet or polishing up floorboards and upgrading kitchen bench tops and appliances make significant differences when it comes to the rent you can charge, the amount you can depreciate and the overall capital growth of an IP.

After doing any renovations, I'd recommend getting a QS report to maximise the depreciables (the report is tax deductible too!).



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