For the avid DIY enthusiast, avoiding some of the more common home renovation mistakes can help to ensure your project remains profitable and stress free.
Once upon a time, home renovations were predominantly embraced by long term homeowners looking to give their abode’s quality a modern boost. These days, the process of undertaking a renovation can also be a very effective means to increase the value of their property, and to ultimately present the home in question in the best possible light to potential buyers.
In 2021 alone, one in three Australians undertook a home renovation, with an average spend of $26,000 per project. Given the state of Australia’s red hot property market, it’s no surprise that many of us opted to upgrade our existing properties instead of packing up and moving onto the next one. Even if you have no intention of selling your home anytime soon, undertaking a home renovation has the potential to add real value to your abode – providing that you are aware of the common reno mistakes to watch out for.
What Not To Do When Starting A Home Renovation
As a general rule, public enemy number one for any renovator is overcapitalisation, or spending more on a home renovation than you could ever hope to make back on the profits of a sale. Experts advise that renovators should allow 10% of your property value for your renovation budgets – so if your home is valued at $700,000, your renovation budget should be $70,000.
It’s important to remember that by definition, to renovate is to refresh, reinvigorate or restore. While the spectrum for doing so is huge when applied to the world of property, technically speaking a home renovation can include anything and everything from a fresh coat of paint, to a brand new kitchen. Regardless of whether you’re a first time renovator or a seasoned professional, the world of home renovation has a few golden rules when it comes to understanding what not to do.
Too Much DIY – While there are many aspects of a home renovation that a relatively handy homeowner can tackle themselves such as installing a floating floor or a new coat of paint, other aspects require a specialised tradesperson. However, one of the most common mistakes with these projects is blurring those lines, so be realistic about what you can and can’t do yourself.
Not Enough Research – Additions like walk-in wardrobes, wine cellars, natural stone and even swimming pools have a reputation for being renovation flops. In contrast, kitchens and bathrooms are always big hits in terms of determining what and where you choose to invest in when looking to potentially renovate for a profit in the future.
Unrealistic Timing – In the world of home renos, not all of your supplies or tradespeople will be able to arrive on your doorstep at the snap of your fingers. Don’t shop as you renovate, and instead aim to have any building materials ordered six to eight weeks in advance to accommodate for any potential – and often likely – delays, particularly for custom orders.
Not Getting Permission – Depending on the nature of your reno, you may be required to get a planning permit from your local council, followed by a building permit. Failure to do so can result in hefty fines and can even result in all of your hard work getting demolished, so be sure to do your homework first. If you’re unsure, this handy guide can be used as a quick reference.
Self Made Stress – Forget about undertaking a home renovation if you’re in the process of changing jobs, getting married, or are having a baby in the not so distant future. While the reno process can be extremely rewarding, let’s face it – it’s stressful. If you have a major life event coming up, aim not to have these big occasions overlap to avoid a nervous breakdown.
Budget Blowouts – Like it or not, the average renovation budget blows out by 80%, and the average slippage on timeline is a whopping twenty months. To minimise your exposure to these unexpected surprises, make an in depth budget from day one and track it as you go. If that means making a project management spreadsheet for your reno as well, then hop to it.
One of the primary appeals linked to undertaking a home renovation is the boost you’re able to give to your property’s overall value. Whether or not you intend on selling in the near or distant future isn’t really relevant, as a home renovation ultimately means more money in your back pocket when the day does eventually arrive.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
