4 ways to add value to your home
There are a number of ways to add value to your home – and with the current property market, the simple premise of owning real estate in certain areas will make you money.
For example, the Australian Bureau of Statistics found that the price index for the average residential property in Sydney rose 13.1 per cent over the year to March 2015. This is a substantial increase, especially given that a normal deposit for a home loan is around 20 per cent of the home’s value.
Regardless of whether you’re in the market for a first home buyer loan or are looking to make an investment, here are a few ways to help add value to your home.
The location
We alluded to it earlier, but it is certainly worth another mention. Before you speak with mortgage brokers about a home loan, decide on the area you want to invest in. According to the Real Estate Institute of Australia, you should be looking for areas that are relatively cheap (in terms of surrounding suburbs), but have certain growth scheduled on the horizon.
This could be like future plans such as a new school, supermarket or improved infrastructure.
The parking
It is amazing the value a small, plain and unfurnished area can add to a home. The Real Estate Institute of Victoria found that there is a price difference of over $100,000 between Melbourne apartments with a car park and those without. Thus, it would make sense to use your home loanto either invest in a property with ample parking, or arrange some!
The front
The front of your home is what real estate agents, prospective buyers and valuers see first. Unfortunately, with first impressions you don’t get a second chance. Therefore, it’s a good idea to throw a bit of time, effort and money this way. Tidy up the front garden, make sure the roof is clean and perhaps give the outside a lick of paint.
The back
We Aussies do love a good deck, and this is reflected in the amount of value a good outdoor entertaining area can add to your home. An article from Domain, June 20 2010, asserts that a deck will probably cost you anywhere between $10,000 and $25,000 – but will add up to $100,000 to your home’s price tag. Now that’s an effective investment!