According to the latest REIV quarterly report, Melbourne house prices are up by 4.5%, while the prices of metropolitan units has grown by 3.9%. This is the highest quarterly result since March 2017.
These encouraging figures may be helping you make the decision to put your home on the market.
If you have a budget for renovations, it may be confusing to decide where best to direct your money to maximise your return on investment.
While it’s true that a brand new or well-renovated kitchen can potentially increase the sellability of your home, kitchen renovations can be expensive and eat up a renovation budget. It’s important not to over-capitalise.
As a general guide, aim to spend between five and ten percent of the value of your house on renovations.
A budget kitchen renovation will attract a higher seller price, but an expensive renovation may not, if it’s not in line with the rest of your home. Your home’s value should dictate how much you spend.
DIY or Hire A Professional?
If you’re a confident DIYer, consider a flatpack kitchen. They are relatively easy to put together with common tools and there is a wide range of choices in colour and design.
Keep in mind that a new benchtop should still be professionally installed and the right professionals are also required to install plumbing, power points, lighting and appliances.
If you have a bigger budget, you may decide to replace your whole kitchen. How do you find a good kitchen builder?
Any building works or renovations that cost over $10,000 will require a Registered Building Practitioner to oversee or carry out the work.
You can check your kitchen builder’s qualifications on the VBA’s Practitioner List.
You may need any or all of the following tradespeople to install a new kitchen:
- a licensed kitchen cabinetmaker to build your kitchen
- licensed or registered workers to install your kitchen cabinets
- a licensed plumber to install your sink and dishwasher
- a licensed electrician for your lighting and appliances
- a licensed gas fitter to install your gas appliances
Depending on the scale of the renovation, you may also need a tiler and/or flooring specialist.
When choosing a company who can build your kitchen, look for one who:
- can offer a 10 year plus warranty on their kitchen cabinets
- has their own designers who will work with you -and within your budget – to deliver the kitchen you want
- gives realistic timeframes for the delivery and installation
- doesn’t pressure you into a decision
- can show you examples of previous work and testimonials from happy customers
A company who manufactures locally will have more control over quality and lead times. You have the added bonus of investing in local industry and creating local jobs.
DIY On A Budget
There are many ways to improve your kitchen without overspending. Minor repairs and renovations can refresh the look and feel without blowing your budget. Consider any or all of the following to keep costs under control:
- painting doors, drawer fronts and panels rather than replacing them
- laying new tiles or lino on the floor
replacing sagging, chipped or sticking floors
- replacing worn benchtops
- painting the whole kitchen
- replacing light fittings, curtains and one major appliance such as a new oven to lift the overall look
Kitchen Colour Schemes
Choosing a colour scheme for your kitchen, whether new or refreshed, is an important decision. While personal taste is important, if you are renovating your kitchen in order to sell your home, it is better to choose neutral colours in order to appeal to the widest range of potential buyers. You can add accents of colour with appliances, plants and accessories to bring your kitchen to life.
Ready to Sell?
Have you completed renovations of any kind to your home within the last 6.5 years?
If so, you will need to provide an Owner Builder Defects Report (also known as a 137b Report or Building Defects Report). This report forms part of your section 32 documents. The purpose of the report is to protect both the purchaser and the owner so that they know the condition of the renovated property before a transaction takes place.
At the Home Inspection Hub, our qualified inspectors will inspect your renovation and prepare the 137B report which can be sent straight to your conveyancer or solicitor. The report highlights any faults or defects in the building work, any incomplete work and will identify if any second-hand materials have been used. We can check decks, carports, extensions, kitchen renovations, full house renovations, bathroom renovations, driveways, tiling, fences, garages and sheds, retaining walls and other small situations.