ROOMS TO RENOVATE FOR MAXIMISING RENTAL RETURNS
Renovating a kitchen is a sure-fire way of adding value to your home, but it can be very costly. Recent research by Improvement found the average cost of a kitchen makeover is $22,000.
If you stick to the principle that you shouldn’t spend more than five per cent of your property’s value on a renovation, a kitchen update could be worthwhile.
The amount you spend will depend on the finishes and what parts you choose to update. But the essential thing is to make sure the final look fits in with the era of the property so it’s cohesive.
Adding appliances such as a dishwasher and creating a place for people to gather with a breakfast bar deep enough to add some stools will help to ensure maximum rental returns.
A bathroom update can cost as much as that for a kitchen. For example, you could spend over $10,000 on a full renovation. But it could be less than $5000 for a smaller job.
Bathroom updates can be fiddly, so factoring in a 30 per cent allowance in your budget will ensure you have the money if something doesn’t go as planned.
Top quality updates that will help you attract good tenants and great rental returns include a modern vanity and basin, slimline shower screens and a deep, luxurious bath.
An extra bedroom
Converting an extra living space into a bedroom can be done for around $10,000, providing there isn’t a lot of structural work needed. And as well as being an attraction to prospective tenants, an extra bedroom can mean significant capital gains and thus a higher price if you decide to sell down the track.
* This article does not constitute financial or legal advice. Please consult a professional financial and legal adviser before making a decision.