Planning a renovation? Whether you’re thinking about a new kitchen, adding that extra bedroom, or finally building the deck you’ve always wanted, there’s one crucial thing to consider before you start: will you actually get your money back?
Here’s the thing – not all renovations are created equal when it comes to adding value to your property. And what works in one suburb might be a complete waste of money in another.
Understanding your local property ceiling
Every neighbourhood has what’s basically an invisible price ceiling. It’s the maximum amount buyers are willing to pay for a property in that particular area, regardless of how amazing the renovations are.
If most homes in your street sell for $700,000 to $750,000, spending $200,000 on high-end renovations probably won’t push your property value to $950,000. Buyers looking at million-dollar homes typically aren’t shopping in areas where everything else costs three-quarters of that.
What do local buyers actually want?
This is where things get interesting. Different areas attract different types of buyers, and they’re all looking for different things:
In family suburbs, buyers often prioritise:
- Extra bedrooms and bathrooms
- Good outdoor entertaining areas
- Decent storage space
- Safe, enclosed yards
In inner-city areas or near transport hubs, you might find buyers want:
- Modern, low-maintenance finishes
- Open-plan living
- Good natural light
- Maybe a small courtyard rather than a big backyard
Near the coast or in lifestyle areas, the wishlist often includes:
- Indoor-outdoor flow
- Durability (salt air is brutal on cheap materials)
- Views (if possible to enhance them)
- That holiday home feel
Getting the intel you need
So how do you figure out what buyers in your area actually value? Real estate agents are goldmines of information here. Most are happy to chat about what features are helping homes sell quickly and which renovations tend to offer the best return.
It’s also worth looking beyond just your immediate area. Check out what’s happening in similar suburbs or regions. For example, real estate agencies in other parts of Victoria often publish market insights that show renovation trends for example The Geelong Agency and other regional firms regularly share data about what buyers are looking for in their areas – and while Geelong buyers might have different priorities than those in your suburb, these insights can reveal broader trends worth considering.
Timing matters more than you think
When you renovate can be just as important as what you renovate:
If you’re planning to sell soon: Finish everything at least a month before you want to list. You need time for those new-paint smells to fade and any teething problems to be sorted.
For the best trade prices: Winter is often cheaper for outdoor work (decks, landscaping) while tradies are quieter. But don’t try to paint exteriors in the middle of July.
If you’re staying put for years: Do what makes you happy! Just be sensible about it. That $50,000 home theatre might not add $50,000 to your home’s value, but if you’re going to enjoy it for the next decade, the math changes.
The sweet spot for renovation spending
While every situation is unique, property experts often suggest some rough guidelines:
- Cosmetic updates (paint, carpet, fixtures): Aim to spend no more than 5-10% of your property’s value
- Major renovations (kitchens, bathrooms): 10-15% can be reasonable
- Structural changes (extensions, adding rooms): Up to 20-25% might make sense, but do your homework
These aren’t rules set in stone – they’re starting points for thinking about your budget.
Keep the paperwork
This bit’s not exciting but it’s important. Keep everything:
- Council approvals and permits
- Certificates from electricians and plumbers
- Warranties and instruction manuals
- Invoices showing professional work was done
Future buyers (and their building inspectors) will want to see this stuff. Plus, if anything goes wrong, you’ll be grateful you kept it all.
Making the call
At the end of the day, the best renovations strike a balance. They make your home more enjoyable for you while also being sensible investments that future buyers will value.
Take time to research your local market. Talk to agents. Look at recent sales. Understand who’s buying in your area and what they’re looking for. Then plan renovations that tick both boxes – improving your lifestyle and protecting your investment.
Remember, markets vary enormously across Victoria. What’s a must-have feature in Melbourne’s inner suburbs might be irrelevant in coastal towns or regional centres. The key is understanding your specific market and making decisions based on solid local knowledge rather than general assumptions.
