With lower interest rates currently at play, some homebuyers may take the opportunity to renovate a home. This decision may come because of extra savings each month, more equity in their bond, or to capitalise on growing buyer demand when it comes time to sell.
Either way, renovations shouldn’t be done on a whim. They should be carefully thought out to ensure that every rand spent adds value.
Here’s a quick guide on what renovations will – and won’t – up your return on investment:
- Kitchen upgrades
As the saying goes, the kitchen is the ‘heart of the home’, and in recent years, it’s become a key focal point. Whether it’s modern appliances, new cabinetry, new fittings or a striking island bench, the kitchen should (budget permitting) be made for entertaining guests, hosting family and should be an area where you – and any prospective homebuyers – want to spend time.
- A bathroom redo
Bathrooms tend to date quickly in older homes, so it’s strongly advised that you relook this by making small or big updates- that can add to your bottom line. Whether it’s new vanities and tops, an updated splashback, new tiles or new fittings, a bathroom update is a good way to spend your money.
If you’re looking to splash out, frameless showers look great too, but it’s important to keep an eye on your budget to avoid overcapitalising.
- Outdoor entertaining
While an outdoor entertainment area is every homeowner’s dream, it’s strongly advised that you do not overcapitalise. Adding a built-in braai and an undercover area can help add value to the home. It’s advised that you steer clear of installing a pool, jacuzzi or decking that may be expensive for the next owner to maintain.
- Granny flat
Space and layout permitting, adding more ‘property’ to your home is probably one of the best ways to up your selling price when the time comes.
A granny flat can yield rental income – a big win for a potential homeowner- or could be used for multi-generational living.
- Open-plan conversions
Open-plan conversions help make homes feel more modern, larger and can quite literally help to transform a space.
While these types of renovations can be costly, they will go a long way in enticing buyers when it comes time to sell. Important to note is that you should work alongside a trusted renovator, as any structural changes to a home will require sign-offs by professionals such as structural engineers.
- Energy-efficient upgrades
While energy-efficient upgrades have almost come to be expected, it still provides an enhanced level of functionality to the home and will help to generate returns such as reduced electricity and water bills.
Things That Won’t Add Value to Your Home
A jacuzzi, a pool, a tennis court or an extensively landscaped garden are generally hard and expensive to maintain and may in fact deter homebuyers. It’s also advised to steer clear of conversions where usable rooms have been converted into custom gyms, cinemas, wine cellars or walk-in wardrobes.
Renovating your home can be a smart way to build equity – if done with intention and market awareness. Before starting, do your research, consult professionals and make sure every rand is spent in a way that supports both your lifestyle and your long-term property goals.
If resale is your ultimate aim, think like a buyer. Prioritise comfort, functionality and broad appeal over niche luxuries.
