Renovation expenses vs Value Increase on first home

[kerry0117]

Hi,

We have recently brought a 3 Bedroom home on 701sqm in Papakura. It only requres cosmetic improvements, ie, bathroom, kitchen, repaint, garden tidy, it is a solid 1960s home and holds potential with wooden floors etc. We purchased the property for 272000

We are very mindful of not over spending as it is south Auckland but at the same time want a reasonable finish that will in the end pay off in the increase in value.

we are considering spending around the 15-20k mark to get the home upto scratch, is this too much?

We are looking at holding onto the place for a minimum of 3 years, so its not just a short term venture, and bearing in mind we are living in the property.

Just would value some advice before we go overboard

Is there a basic formula one could apply when doing this type of renovation, cost vs increased value?

[LondonKiwi]

We are looking at holding onto the place for a minimum of 3 years, so its not just a short term venture, and bearing in mind we are living in the property.

3 years is short term in my book!!. Don't think you can go too far wrong however by adding value, if you do it right your 20k could add 30-40k to the sale price before captial gains.

LK

[leh10]

Hi,

We have recently brought a 3 Bedroom home on 701sqm in Papakura. It only requres cosmetic improvements, ie, bathroom, kitchen, repaint, garden tidy, it is a solid 1960s home and holds potential with wooden floors etc. We purchased the property for 272000

We are very mindful of not over spending as it is south Auckland but at the same time want a reasonable finish that will in the end pay off in the increase in value.

we are considering spending around the 15-20k mark to get the home upto scratch, is this too much?

We are looking at holding onto the place for a minimum of 3 years, so its not just a short term venture, and bearing in mind we are living in the property.

Just would value some advice before we go overboard

Is there a basic formula one could apply when doing this type of renovation, cost vs increased value?

i think Remodeling certain areas of a single-family house is an excellent way for homeowners to add increased functionality and beauty to a property at someone else's expense. By choosing the right project to enhance your living space, a significant portion of the expense can be passed on to future owners in the form of increased property values.