For most people, putting your money into a house means a long term commitment that may not pay off until it’s time to sell. But what many don’t know, is that you could be reaping the rewards of home ownership a lot sooner than you think.
From the minute you bought your house, its value may have been going up. That gap in between the value of your home and the remaining balance on your mortgage is called equity. You could access the equity in your home to top up your loan and help achieve the things you want in life.
Luckily, you don’t have to sit around twiddling your thumbs waiting for your home equity to grow. Renovating could be a great way to increase your home’s value, but there are a few things to look out for if you’re approaching this mammoth job. Before you go out and build that gold plated shark tank bar, here are some of the dos and don’ts when it comes to renovations that could help grow your equity.
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Front of the house
The front of the house is where you’ll make the first impression on a buyer, making it one of the most important things to get right if you want to be batting away potential takers. Investing in things like landscaping to spruce up the front yard, slapping on a new paint job and maintaining a tidy roof gives buyers confidence.
Make useful renovations
Before deciding on any major renovations, think about what they’ll add to a listing. Big drivers of value include upgrading kitchens or refreshing bathrooms. If you’re thinking about renovating to increase value, think about the general needs of buyers – modern functionality, room to grow and utility are all important.
Add a deck or outdoor entertainment space
General entertainment is another nice add on which could increase the value of your home, and grow the equity you have within it. Creating an outdoor entertaining space like a deck or terrace, especially one that connects with the inside space, could make a big difference. It’s a win / win, really.
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Remodelling purpose built rooms
Turning your garage into a man-cave always seems like a great idea. But when it comes to selling a house, most people are looking for a garage they can park their car in. Rooms that serve a specific purpose like the laundry or garage may best be left to get on with the job.
Unique colour schemes
That custom interior paint job might have seemed like a great idea when you went through a neon phase in the 90s, but if you’re looking to increase the value of your home, you may be better off with neutral colours. Trends go in and out of fashion pretty quickly. A fresh coat of white to old faithful walls may be more likely to drive interest and value.
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