Renovators warned costs may exceed value added
2nd October 2008
Renovators warned costs may exceed value added
By Terry Ryder
Suncorp has cautioned consumers to carefully consider whether a renovation project will add to the value of their home.
This follows research that shows the cost of renovations has risen over 6% in less than 12 months, yet the property market is cooling.
In the last 15 years, spending on home renovations has tripled, with the value of house alterations and additions climbing to more than $5.7 billion in FY2008. It's one of the most common mistakes made by property owners: assuming that $50,000 spent on renovations or additions will add $50,000 or more to the value of the property.
Suncorp general manager banking Terry Wasmund says home owners should seek advice from professionals to avoid over-capitalising.
"The property market is slowing after years of strong growth," he said. "The cost of renovations in a slowing market is likely to outweigh the value added to the home.
"It's advisable to take this into consideration when planning any home renovation projects and talk to accountants, builders and other professionals to determine whether it's worthwhile."
The research reveals a revamped kitchen could set the average family back more than $30,000, while bathrooms upgrades range between $9,000 and $24,000.
***************************
This article was written by Terry Ryder & is taken from the News page of the Hotspotting website
http://www.hotspotting.com.au. We highly recommend this website for people interested in real estate.
<< Back to Latest News
Articles
INSTANT REACTIONTo put a property on the market takes effort. There is the effort in selecting the agent and marketing
strategy, the effort to prepare and present the property and then the effort to keep the presentation A1 throughout the campaign.
CONDITIONINGThe tricks used to drive your price down.
THE TWO RESERVE PRICESAt an auction, the property cannot be sold until the bidding reaches the sellers reserve price. Many sellers that sign up for an auction are comforted by the fact that the reserve price will protect them against underselling.
