According to recent statistics from realestate.com.au about a third of homebuyers are looking for properties that can be renovated through bathroom renovation companies in Perth. But, why bathroom renovations? Three out of five home buyers are willing to spend more than $10,000 in renovations with bathrooms and kitchens on the top of their lists compared to other parts of the home.
According to Max Comben of Century 21, homes with big renovations potentials are the most popular with quick turnovers of homes built in the 1960’s. Homes that can be renovated are particularly interesting for buyers with creativity and the know-how to get the job done right and add value. Ben Keevers of Peard Real Estate said that homes which have been recently renovated are also selling quicker. However, buyers can be picky because there are huge amounts of stock in the market.
On the other side of the globe, a booming segment of the housing market that is likely to enjoy another boost is home renovations. The Bank of Canada has lowered its interest rates and Canadians will have more money to fix their castles instead of investing in new homes. At least $68 billion was spent by Canadians on renovations compared to $48 billion that was spent on new homes. The housing industry expects home renovations to increase by 3% this year and another 3% in 2016.
However, not all home renovations increase the value of a home. Appraisal Institute of Canada has broken down how a dollar invested in renovation can bring in a return.
• Bathroom and kitchen will get 75 cents per every dollar spent. Adding a kitchen island is bound to get 65 cents for every dollar while adding an independent whirlpool bath has 64% ROI.
• Interior and exterior paint job will yield 67 cents on the dollar.
• Energy efficient projects are bound to enjoy 61 cents for every dollar spent plus the additional benefit of generating energy savings. The highest ROI comes from heating system upgrades that include furnaces, windows and insulation.
• Hot tubs, swimming and skylights have the least impact on resale values but at least the homeowner has something to enjoy.