The volatility of the last few years has taught us that there may never be ‘a right time’ to do anything. Whether it’s a once in a lifetime pandemic, rising interest rates, or the desire to catch a train in Sydney, something’s always bound to come up and thwart your plans.
With inflation at a record high, interest rates tipped to climb to 2.60% by year’s end and a cooling real estate market, now mightn’t sound like the best time to put money into a house. But while surely the universe has nothing else up its sleeve, who knows what’s next?
Many buyers still priced out by the pandemic boom and homeowners who took too long to sell before property prices began declining at the fastest rate in 40 years (-2.2% in July alone) are opting to stay put until things change. In the meantime, why not add value through renovating?
The fear of a still burdened supply chain, increased building costs, and an unstable construction sector, perhaps. Fair call. But you don’t have to do a Block-worthy reno to see a big pay-off when you’re finally in the position to sell.
While kitchens and bathrooms are forever considered the fundamentals, smaller updates can also have a big appeal, like removing carpeting and refinishing floors. Research suggests that the installing hardwood flooring has a return on investment of over 85%. In the kitchen, replacing cabinet hardware, installing a kitchen island, or adding a new backsplash can instantly add value and make your kitchen feel new. Changing out a countertop to something classic and timeless, like marble, also ensures that your renovation won’t date too soon.
Simply updating doorknobs and bathroom fixtures can make all the difference, while removing outdated window treatments and lighting can also have a big impact. If the home was built in a certain era, embrace and respect its original design when renovating. Everything from lighting to doors and handles, flooring to furnishings and tiles to tap-ware that highlights the building’s era can set it apart from more run-of-the-mill properties.
If the end game is to sell when the time is right, it’s important to recognise that the “I don’t have to live in it” renovation mentality is problematic. If you wouldn’t live in it, why would somebody else? Or, as we’ve already mentioned, who knows what’s next? Your investment may turn into an owner/occupier situation, and then who’s going to have to live in a cheaply finished home with a yellow paint job because Dulux Pale Daffodil was on sale at Bunnings?
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Anyway, your biggest hurdle mightn’t be what colour to paint your walls (spoiler: the answer is always white), but finding a builder with availability. The construction sector is expected to continue to support economic growth in NSW through next year as stronger-than-expected new dwelling approvals from Homebuilder grant purchases make their way through the pipeline. AKA: huge backlog, good luck.
