Which improvements increase home value?

The best way to improve your home’s value might differ from what works for your neighbor, but there are tried-and-true strategies that can make a significant impact. Whether you’re working with a tight budget or ready to splurge, these tips will help you get started.

What homes are best suited to value adds? 

Wondering whether renovations could add value to your home? Or perhaps you’re in the market for an undervalued future masterpiece? 

Homes with value added opportunities are typically those that are older with good structural integrity, but with outdated interiors and opportunities for floor plan adjustments, WHITEFOX co-founder and judge on The Block, Marty Fox, told Your Mortgage. 

^{Image: Marty Fox (provided)}

“Other things to look for are properties in desirable locations that may lack modern amenities or aesthetic appeal. 

"Think of them as the ‘ugly duckling’, just waiting for someone to turn them into a beautiful swan.”

3 top tips to increase your home’s value (no matter your budget)

Growing your home’s value ultimately increases your wealth. And, if you hold a mortgage, increasing your home’s value can be beneficial in many ways.

Of course, if you’re planning to sell your pad, updating it could see you fielding higher offers from buyers than you otherwise may receive. If you’re not planning to sell, revamping it can boost your enjoyment of your space and better align your home to your lifestyle. 

“You don’t necessarily need a large budget; smaller updates can be highly effective to increase value,” Mr Fox said.

“Simple enhancements like fresh paint, new fixtures, or landscaping can significantly improve a property's appeal without breaking the bank. 

“You want to entice potential buyers into falling in love with your property, so remember, it’s what they see first that can make the difference.”

Increasing your property’s value can also provide you with greater freedom in your home loan decisions. 

A higher home value can mean a lower loan-to-value ratio (LVR). Most lenders offer more competitive home loan options to borrowers with lower LVRs – meaning bolstering your home’s value could allow you to refinance to a home loan with smaller regular repayments.

You might also choose to refinance to access any newly-found home equity in cash, allowing you to use it to fund other purchases – perhaps an investment property or a fancy getaway. 

However, it’s important to be aware of the downsides of renovations before you get too far into the weeds.

“Many homeowners underestimate the time and costs involved in renovations, leading to budget blowouts and stress,” Mr Fox said.

“Additionally, some may over-capitalise on the renovation for the suburb they’re in, making it difficult to recoup their investment.

“Have a clear plan before you set out to do any updates and don’t overcommit to projects that are unachievable. It’s important to also do your sums before committing.”

So, with all those benefits (and some of the risks) spelled out, and plenty more available, here are some ways you might try to improve your home’s value. 

How to improve your house’s value for cheap 

^{Image by freepik}

You don’t need to break the bank to give your home a value boost. With some creativity, effort, and smart choices, you can make noticeable improvements without spending a fortune.

“Focus on cosmetic updates such as painting walls, updating hardware, or enhancing curb appeal with landscaping and gardening,” Mr Fox said.

“Consider doing the easier tasks yourself to save some costs.”

1. Painting 

It’s a cliché for a reason: fresh paint can transform a tired, dated home into something sleek and modern. However, not all paint jobs are created equal.

• Do it right
  Invest in quality paint and take the time to prep your surfaces properly. Neutral tones, like whites, greys, or soft beiges, are ideal for broad appeal while bold colours, when well considered, can add interest and attract attention.

• Avoid the pitfalls
  Skimping on materials or rushing the job can result in what’s known as a ‘landlord’s special’ – sloppy work that detracts from your home’s appearance.

2. Take to the curb 

First impressions matter, especially when selling your home or polishing it to be the home of your dreams. Enhancing your curb appeal doesn’t have to cost much but can make a huge difference.

• Mow the lawn, tidy up the garden, paint the front fence, and hose the driveway
  One day’s worth of work could add thousands to your property’s value

• Refresh your front door with a bold colour or new hardware

• Add outdoor lighting for a warm, inviting look at night

3. Mini makeovers 

Small upgrades can yield big results. Focus on quick fixes that elevate your home’s aesthetic and functionality:

• Replace outdated and broken cabinet handles or light fixtures

• Regrout tiles or recaulk around sinks and bathtubs

• Add affordable storage solutions like shelving or hooks

How to increase a property’s value with a moderate budget 

^{Image by benzoix on freepik}

If you have a bit more to spend, you can tackle larger projects that provide a higher return on investment.

“Consider kitchen or bathroom updates, such as replacing countertops or fixtures, and improving lighting,” Mr Fox said.

“These are the high-traffic areas that will provide the most impact to potential buyers [and] are often all you need to impact the value positively.”

1. Bathroom and kitchen touch-ups

Focus on making impactful changes to central areas like kitchens and bathrooms:

• Update countertops with affordable options like laminate or engineered stone

• Replace outdated faucets, sinks, or cabinet doors

• Update backslashes and tiling for a fresh, modern look

2. Flooring updates

Replace old carpets or dated linoleum with modern, durable options like hardwood, laminate, or vinyl planks. These upgrades are attractive to buyers and can instantly refresh your home.

3. Outdoor living spaces

Get stuck into your backyard or patio to create an inviting space that people want to spend time in:

• Add a deck, pergola, or outdoor seating area

• Install pavers or a fire pit for a cozy gathering spot

• Plant an inviting garden or add planters with flowers or herbs

How to increase your home’s value with a boujee budget 

^{Image by Lotus Design N Print on Unsplash}

If you’re ready to go all out, major renovations and luxury touches can take your home’s value to the next level.

“This is where you can look to engage an architect, who can significantly change the footprint of the home,” Mr Fox said.

“There are plenty of fantastic architects out there and not all of them charge exorbitant fees. 

“With a large budget, major renovations like adding an extension, remodelling kitchens and bathrooms, or enhancing outdoor spaces like adding a pool or alfresco can transform the home and maximise its value.”

1. Full-scale kitchen or bathroom renovations

Kitchens and bathrooms are often the most scrutinised, traversed, and trending areas in a home, making them prime candidates for full-blown makeovers.

• Choose materials wisely
  For instance, swapping out standard countertops for quartz, marble, or granite can add value, but it's important to be careful the upgrade doesn’t cost more than the value it adds. 

• Update appliances
  Equip your kitchen with modern, energy-efficient appliances.

• Renewed bathrooms
  Rainfall showerheads, freestanding bathtubs, and heated floors can make a bathroom feel like a luxury retreat – one that a buyer might pay extra for.

2. Luxury features

Finally, if you’re looking to go all out, luxury additions can transform your home into a showstopper, creating the ultimate lifestyle experience for you or future buyers.

But, before splurging on a pool or a spa-like bathroom, consider your local market. Luxury features in areas where buyers tend to demand them are more likely to add significant value than in markets with lower buyer expectations.

• Perfect outdoor areas
  Build a pool, hot tub, or outdoor kitchen to make your backyard a dream entertainment space. Add landscaping and outdoor lighting for a polished look.

• Home theatre
  Dedicate a space to a home theatre with surround sound, tiered seating, and a large-screen projector. 

• Spa-like bathroom
  Go beyond the basics by adding steam showers, towel warmers, and high-end fixtures for a hotel-like experience.

3. Renovations and extensions

If you're ready to make a significant investment, major renovations and structural changes can dramatically increase your home's value and transform it into your dream space.

• Open up the floor plan
  Removing non-structural walls or reconfiguring spaces can improve flow and appeal.

• Build an extension
  Adding more square footage, such as an extra bedroom, a home office, or a second living area, can increase livability and market value.

• Rethink your layout
  Consider rearranging the layout of kitchens, bathrooms, or living spaces to maximise functionality and space.

Considering extending or renovating? Compare top construction home loan rates

Looking to fund a major renovation or build your dream home? Construction home loans can help by covering the cost of building works and releasing funds in stages as you need them. Here are some of the most competitive options available now:

Important Information and Comparison Rate Warning

_{Image by freepik}