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How to avoid over capitalizing your home

When the time comes to improve your house, the first thought that comes to mind is ‘what’s the value of my property’? This is when you need a property appraisal.

There are a number of factors that affect the value of your property, many of which are fluid and change over time.

Many homeowners try to increase the value of their investment over time with various improvements. However, there is a distinction between changes that improve your home’s value and those that are mere whims. Closing in the back verandah, for example, might create a warm sunny space during winter but if it’s done without council permission, it could decrease your home’s value – either by impacting on its structural integrity or as a result of the risk that the council could issue a demolition order to you or any future owner.

There are many improvements large and small that can be made, but the best approach is to do your research, stick to basics and make sure you do things thoroughly and professionally. Here are a few things you can do that will improve value as well as livability:

• Landscaping – Create a low maintenance and stylish garden.
• Painting – A fresh paint job can make the world of difference to the outside appearance of your property. However, try not to stray too far from the existing colour scheme.
• Internal spaces - Removing a non-load bearing kitchen wall can open up a living space and add considerable value. The change in your property listing from ‘separate kitchen‘ to ‘open plan living space’ can make a huge difference to buyer enquiry.
• External spaces – Creating new spaces to sit and relax in your garden opens the opportunity for a wider range of buyers.

There are dozens more possibilities but starting with the basics keeps things achievable and affordable.

Make sure you talk to your real estate agent during your property appraisal about the improvements you’ve made. They will often have tips about what buyers are currently looking for, giving you food for thought for future improvements you can make.

Our advice is free and we’re always willing to spend time with you to assure you don’t over-capitalise.
 

by Celine Battendier

How to avoid over capitalizing your home
palmbeachfn.com.au July 2019
First National Palm Beach
Cnr of 6th Ave & Cypress Terrace, Palm Beach, QLD 4221
Ph: 07 5559 9600