Home Renovation Mistakes That You Should Avoid | With so many HDB flats or BTO flats available for sale such as HDB in Woodlands, it is no wonder that the property investment market has been hot. More people are jumping into the property investment bandwagon. However, buying a resale HDB flat or a BTO flat can be unaffordable to certain people, especially young working adults who have just started working. Fret not, you can always choose to renovate your current house to beautify it and sell it later. But before you start renovating your house, there are some home renovation mistakes that you should avoid if you plan to resell your property.
1. Trying too hard to make the property looks like how it should Many homeowners renovate their homes to how they desire it to be, or how they want the house to look like. They follow the trendy home design that they love blindly to create a space that they love. As a result, they forget about renovating the house to look more appealing to potential buyers or potential tenants. Do bear in mind that you are renovating your house to possibly increase the property value for reselling purpose and not for you own stay.
In addition, you should not invest a property in an estate where you prefer to live. Invest in an estate where profits and numbers make sense to invest in.
2. Focusing on kitchen and bathroom only Most homeowners focus on renovating the kitchen and bathroom only, forgetting that there are many other things that need renovation as well. For example:
a. You will gain approximately 108% to 116% on your return of investment if you go for attic insulation
b. You will gain approximately 92% on your return of investment if you go for a new garage door
c. You will gain approximately 91% on your return of investment if you go for a steel entry door
That being said, do not focus renovation on only the kitchen and the bathroom. It is equally important to renovate every aspect of the house, especially at places that need renovation the most.
3. Renovation that leads to overpriced property Homeowners should consult with real estate agent to make sure their renovation plans will not price it out from the neighborhood. That being said, having a granite for counter surface will not give you higher price of return on investment if everyone in the neighborhood is upgraded to laminate only. Do your research in advance to know the average value of the properties in your neighborhood. If most properties in your neighborhood have a market value of $100,000, spending additional $100,000 on renovation will then make your property $200,000. This will then make it difficult to sell your property as your property has a higher market value. Therefore, it is advised to do your homework beforehand.
4. Not choosing a universal appreciated investment Property buyers tend to think that all investments equal to the equivalent amount of increased value. However, that is not the case. For instance, an additional of a swimming pool will add little to no value the the resale value of your home. Instead, property buyer should focus on universal appreciated things such as an updated kitchen, bathrooms, and master bedroom. This will be the best way to get beautiful return for your home investment.
5. Not knowing the time to stop Most homeowners upgrade everything at home thinking that they should to increase the house value. However, this is not true. The key is to do 20% upgrade that will further add the remaining 80% of the value. The remaining 80% will be mainly cosmetic and definitely cheaper than what is expected.
6. Not hiring professional One of the biggest mistakes that home owner commits is that the owner skimps on the money that should be spent for hiring a professional, such as interior designer. The cost to hire a professional might be expensive but it is definitely worth it. The interior designer will be the one to handle everything about your home renovation from designing your house to buying the necessary items. This will then save you a lot of your time and effort. In addition, hiring a reputable professional will avoid you from spending money unnecessarily on things that do not increase your property value or things that seem distasteful to potential buyers.
Many homeowners invest in costly renovations thinking that it would increase the value of their property investment. However, some investment may backfire and bring negative effect instead. For example, a swimming pool or water feature might also be a bad idea as not every owner wants a pool or water feature in their house due to high maintenance cost. It is definitely not an intelligent investment. Therefore, do your research ahead on what is needed and prioritized in the property market before you do any renovations to your house.