Renovating can be a great way to add value to your property, but get it wrong and you could be burning money, experts have warned.
Homes tweaked by DIY owners often sell for less money than similar properties in the same area which were unrenovated and in much worse condition, according to Shaun Stoker, director at Ray White Surry Hills Sydney.
“I see it all the time, potential buyers just don’t become emotionally attached to homes on the market that have DIY renovations where the owner hasn’t done the project properly or lost sight of it and not completed the job,” he told News Ltd.
“Buyers would rather look [at] the blank canvas of an unrenovated home rather than being imposed with someone else’s DIY mistakes and the cost of having to repair them.
“The potential buyer can find it too difficult to see through that bad handywork to imagine how they could make it their own.”
Aussies are DIY dunces
Meanwhile a new study has exposed Aussies as renovation enthusiasts who lack the skills and motivation to complete DIY tasks.
The survey by Masters Home Improvement revealed that four out of five households undertook home improvement projects last year. But more than half (53 percent) left them unfinished.
Garden and backyard projects topped the list of the most prematurely abandoned plans, with 81 percent of gardeners leaving projects unfinished. We even have trouble completing some of the most basic work around the house such as painting, according to the survey of 1300 people.
A separate study suggested that Australians would spend $35 billion renovating last year – clearly no small change! Many of which would have borrowed to fund home “improvements”, whether redrawing on their existing home loan, taking out a separate loan or using a credit card. And many could be in for a nasty shock when it comes time to sell or get a valuation.
Reality TV is to blame: expert
Some blame reality renovation shows, which have dominated our TV screens in recent years, for our inflated DIY confidence making the renovations appear less complex than they are.
“They think it’s as easy as the TV shows say and as easy as the magazines – and it’s not,” Chris Gray, chief executive of property management and advisory company Your Empire, told Today Tonight.
“Most people think that the more money they put into it, the more money they are going to make. But the higher costs of renovation and a soft real estate market can see gains massively eroded.”
While abandoning a renovation project isn’t the worst thing in the world, it’s important to carefully consider the pitfalls surrounding your choices and do your homework, including comparing home loans or other finance options and talking to real estate agents so you’re able to meet the market.