Whether you’re considering selling in the future or simply looking to maintain a level of value growth, there are a range of ways you may be able to boost your property’s value without having to rely on the housing market.
After months of record increases in dwelling values across the country, many property experts are beginning to forecast potential dips in growth in the next few months. For example, the latest forecast from big four bank economists at NAB predicts that while values may increase a further 7 per cent to 21.6 per cent this year, these gains may be cut in half in 2022.
Further, the latest data from the Australian Bureau of Statistics show that the value of new home loans has finally fallen month-on-month in June this year after historic levels of home loan lending since November 2020. This may indicate that Australia’s demand and appetite for home buying is starting to peter out, with property values potentially following.
So, what options do homeowners have outside of relying on the property market? Here are 6 tips to help potentially increase your property’s value.
1. Curbside appeal
When working to boost your property’s value it can be helpful to start from the outside in. This means beginning with the curbside appeal of the home.
There are a number of ways that you boost curbside appeal, from DIY projects like installing window flower boxes, replacing door knobs and giving your mailbox a makeover, to more involved tasks like landscaping to add symmetry to your exterior, installing new fencing or adding shutters to windows. Try to consider the first impression the property may currently be giving off and work from there.
2. Consider natural features
Another way you may be able to increase your property’s value is to take advantage of the natural features you’ve already got around you. This may mean renovating to install glass accordion doors to take advantage of backyard views while increasing the natural lighting. Or, consider moving living and entertaining spaces to a north-facing side of your property with better sun orientation. Whatever you can do to take advantage of the natural features available around your property may help to make the home more inviting and see it valued higher.
3. Install storage
A simple yet effective option to potentially boost the value of a property is to install more storage, such as shelving in the kitchen and pantry, increased cabinet space in the bathroom and laundry, adding built-in wardrobes, building a shed or extending garage space.
Think back to when you were renting and how lucky you may have been to have a bedroom with its own wardrobe. Many older houses in Australia in particular are not built with the storage needs of today in mind. By maximising your storage space you may potentially increase the value of the property, and make any future renters or owners much happier!
4. Build a granny flat
Another option to consider if you’re trying to boost your property’s value is to build a granny flat if the space allows. A report by CoreLogic found that adding a granny flat may boost a home’s value by up to 30 per cent, with an increase of 27 per cent to rental income.
The investment involved was estimated to be around $200,000 for a two-bedroom flat, and $120,000 for a one-bedroom space. While this is less affordable than other options to increase your property’s value, the return may be greater than, say, making a few simple aesthetic changes.
If you’re interested in building a granny flat on your property, it may be worth getting in touch with the Reduce Home Loans team of experts. We can provide more information about how to potentially finance this project, such as our competitive construction loan.
5. Invest in insulation
If you’ve ever lived through a cold winter or scorching Aussie summer in a poorly insulated property, you’ll know first hand how uncomfortable it can be.
In fact, an article by The Conversation attributed the poor minimum thermal performance standards of Australian housing to some of the 7 per cent of deaths caused by cold weather between 1998 and 2009. It went on to note that once housing is built, there are “no mandatory compliance checks for quality, insulation or warmth in either the owner-occupier or rental sectors”.
So, if your property is overdue to have its insulation upgraded, ducted heating and cooling systems installed or double-glazed windows added, consider doing so to help make the property more appealing to buyers (and help keep utility bills down in the meantime).
6. Don’t underestimate DIY
If you’re stuck inside during lockdown and looking for more affordable options that may help update your home, it’s worth exploring some of the DIY projects Reduce Home Loans looked into only recently.
Take advantage of clik and collect services from retail stores like Bunnings and look into options such as building a veggie patch, creating a library wall and much more. You’d be surprised at how much impact a weekend of working on your property may go towards increasing its value to potential buyers or renters. When paired with some of the bigger projects above, it may help your property to stand out in a crowded market.