Category: House & Home
Chapter Select
Sub category: Loan
7 April 2016

Raising equity: The do’s and don’ts

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.

Renovation thumbs up

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.

Renovation thumbs down

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.

You could access the equity in your home to help fund cosmetic renovations like these. If you’d like to chat with us about how to access the equity in your home to help achieve your goals, you can call one of our specialists on 133 464

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Home and Contents Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

Related articles

House & Home
Loading...
Share
Loading...
XS
SM
MD
LG