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What increases the value of property? Australians weigh in

Recently we surveyed over 1,000 Australians on the factors they value when choosing a property. We were interested to discover what actions people think would increase property value and what extra features they would be willing to pay more for. The results found that 56.6% of respondents believed a renovation is the most effective way of increasing the value of your home, and Australians are willing to pay more for a modern kitchen or extra outdoor space.

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The best way to increase a property's value?

There is a reason why 56.6% of Australians believe renovating is the best way to increase the value of a property, it is because it is widely considered the fastest way to boost a property’s value. While renovations can range from simple home improvements to major refurbishments and additions, such as adding another bedroom or level, it is important to consider the amount of money, time and effort you’re prepared to invest in a renovation, and which areas of your home would benefit most from an upgrade.

Renovators need to keep a close eye on their budget, some renovations may be very costly but fail to result in increased property value. This can create a situation where the cost of the property outweighs its market worth, also known as overcapitalisation. Our survey data has provided insights to help us understand what features the Australian public would be willing to pay more for when purchasing a property.

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What property features are Australians prepared to pay more for?

modern-kitchen

It turns out the features you’re willing to pay more for in a home may change with your age. Baby Boomers tend to place more value on an additional bathroom or outdoor space such as a garden or yard. On the other hand, Generation X would pay more for a modern or updated kitchen.

A pool was the most popular choice among Generation Y respondents, nearly 30% said they would pay more for a house with a pool. Interestingly, however, a previous survey that asked respondents to put a dollar price on how much more they would be willing to pay for a home with a pool showed that most people wouldn’t pay more at all, except for the younger Generation Y. This indicates that the actual dollar amount people were willing to pay extra for a property with a pool may not be as high as most people think.

It is always useful to know who your target market is and broadly what they value. This can help inform your decision when it comes to deciding on where to focus your renovations in order to get the highest return. It’s also useful to talk to local real estate agents to find out their thoughts on what features buyers in your specific area are willing to pay extra for.

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Tags: renovation, construction loan, home equity loan

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COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
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EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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