If you are considering a home renovation, make sure you do renovation research carefully to ensure you are making a wise financial decision and getting the biggest bang for the buck.
By: Phoenix Lee/
Not all home renovation is what they are cracked up to be. When deciding what type of renovation to undertake and how much to spend, do renovation research and consider the payback on your investment.
In general, renovations are unlikely to deliver a dollar-for-dollar return on investment, sorry but it’s the truth. That’s not to say that doing renovations is a waste of money, rather it is to say that you should balance your family’s enjoyment of the home with your desire to make a wise investment decision. For that renovation research is important.
When determining the scope of your renovations, “keep it simple stupid”. Forget about the luxuries and keep the renovations general and to projects that improve the homes appearance.
Renovation research will show you that the greatest return on investment is painting and decorating. Why? Because they play on people’s emotions and when you play with emotions, people tend to do things they wouldn’t always do. It’s amazing that if carefully throughout, a can of $30.00 paint can potentially bring back hundreds and sometimes thousands of dollars.
Here’s a good rule of thumb when it comes to home renovation – Don’t be the best on the block, you may be overpricing your home for the neighborhood. From an economic point of view, make your home no more than second best in the area.
Home Renovation Projects With Some Payback
Whether you’re planning to sell your home soon or to stay put for a while, you’d probably rather have any improvements you make to your house add as much value as possible. Here are some popular projects:
Interior Painting and Decorating. Sprucing up the walls and ceilings with a coat of fresh paint can be one of the best uses of your renovation dollars with an average potential payback of 73 per cent. A new paint job leaves a good overall impression. And it’s one of the easier do-it-yourself jobs that can save or eliminate labor costs. Experts advise selecting colors that are neutral or in keeping with today’s styles.
The Kitchen. Professional appraisers surveyed agree that remodeling the kitchen provides an average payback of 72 percent. What if you don’t want to spend tens of thousands of dollars to remodel? Try some lower-cost quick fixes such as updating the lighting, replacing the cabinet doorknobs, or installing new counter tops. The payback will be lower, of course, but it might just tide your kitchen over until you’re ready for a major overhaul.
Your kitchen is probably the most used room in your house. Poor layout, inadequate lighting, cramped spaces, outdated fixtures and old cabinetry are common complaints of homeowners. Before you decide to go ahead with a kitchen renovation, it is important to clearly identify the features you want in your new kitchen. Just as important is a thorough pre-renovation inspection to identify any existing problems.
The Bathroom. This is right up there in the value-for-money area with a payback of 68 percent for a full renovation. Experts suggest updating the look, but keeping the fixtures neutral. Quick fixes for a lower payback: install an updated mirror, medicine cabinet, or vanity. New lighting can also work wonders.
Flooring Upgrades. Attractive floors add value, with an average potential payback of 62 percent according to the survey of professional appraisers. But experts caution that this payback could be reduced if potential buyers prefer carpeting, rather than hardwood floors, for example. If you’ve got wood floors, refinishing them could bring new life.
Energy Efficient Upgrade – Mechanical Systems
One of the best ways to make your home more comfortable, healthier and less expensive to operate is to upgrade the cooling and ventilation systems. Energy-efficient equipment upgrades can be expensive, but can be offset by lower operating costs.
Before you decide to upgrade mechanical equipment, it’s also critical to understand how the overall performance of the house will be affected. Keep in mind that your lifestyle, the number of occupants and their age all have an impact on the performance of mechanical systems. This type of upgrade will require professionals to do it right and to avoid causing other problems in the house. It’s important to weigh the benefits against the costs.
When planning your home renovation, remember that the house is much more than just four walls and a roof – it’s an interactive system made up of many components including the basic structure, ventilating and air conditioning equipment, the external environment and the occupants. Each component influences the performance of the entire system. Renovation research provides an opportunity to improve how your house performs.
Do you know enough about how property valuation is done in Singapore?
Knowing how to calculate the property valuation is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.
Another smart way to avoid overspending on your property is to get the right loan. Getting the right loan can be a much simpler task, but only if you get the right person to it for you. Get in touch with iCompareLoan’s loan consultant to help you get the best loan deal at the right price.