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GUEST OBSERVATION
If the popularity of television shows like The Block is anything to go by, Australians don’t just love our homes – we also love to decorate, renovate and generally improve them.
If you’re bitten by the renovation bug, rest assured, a well-planned renovation can give your lifestyle - and your home’s value, a welcome boost. The key is to focus on improvements with broad market appeal, and give careful thought to how you will fund the project, something that is often glossed over in renovation shows.
To avoid overcapitalising - where you spend more on the renovation than the value it adds to your home, consider the market in your area to be sure your improvements will fit in. Adding a fourth bedroom for instance, can make sense if you live in a family-friendly suburb, less so if you’re in an area popular with young singles.
Next, put your hard earned cash to work where it will deliver the greatest benefit. High quality kitchen and bathroom renovations almost always add value to a property. The same can’t be said of outdoor spas or swimming pools, which can be high maintenance and don’t always deliver a fiscal return.
It’s also worth thinking about eco-friendly renovations. Home buyers can’t get enough of ‘green’ features like rainwater tanks, energy efficient appliances and drip-feed irrigation systems. Along with adding value to your home, you’ll also save on utility bills.
Planning a renovation is exciting, but before thumbing through colour charts or carpet samples, it’s critical to think about how you will pay for it all. Your home loan is a valuable tool here offering a low cost source of funds, and there are a number of options to weigh up.
If you’re ahead with your loan, a redraw facility provides easy access to those extra payments. If you need a little more cash, a home loan top up could be the solution. This simply means bringing your loan back to its original level – or borrowing a bit extra, and it’s a far simpler process than refinancing to a new loan.
A top up works best for non-structural improvements like painting, adding new floor coverings, or kitchen and bathroom makeovers. The funds are generally paid directly to you, providing the flexibility to complete the project in your own time.
For structural renovations like adding a new extension or an extra floor, a construction home loan can be the answer. Lenders will ask to take a look at your building plans, so you’ll have the benefit of an extra set of eyes checking the quality of your project. Funding is then provided as a series of drawdowns as various stages of the project are completed. The beauty of this approach is that you only pay interest on the funds drawn down.
Patrick Nolan is a home loans expert with <a href="https://www.mebank.com.au/" target="_blank">ME Bank</a>.
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Boost your home’s value through renovation: Patrick Nolan

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GUEST OBSERVER
Timing can be everything when it comes to buying or selling homes and your ability to secure a great price for your home, or even attract multiple buyers, can hinge on the time of year.
Spring is widely regarded as the ideal time to sell property. Warmer weather attracts buyers onto the streets and into open home inspections; our gardens tend to look their best in spring; and many buyers want to be settled in their new home in time for the looming festive season.
Don’t despair however if you are selling your home at a different time of year. The seasons don’t always dictate the best outcome. Indeed, selling in spring may deliver the best price for your current home but it could also mean competing with more buyers for your next property – and that can mean paying a higher price.
Think beyond spring
The geography of your home can be a contributing factor to the ideal time to sell. In hot or humid areas for instance, your property may be more appealing during the cooler months. Or your home may have particular features like an open fireplace or underfloor heating that are best showcased during the cooler months. 
Remember too, with potentially fewer buyers around in winter or autumn, you could enjoy faster turnaround times on professional services like your solicitor or conveyancer. If you are selling in winter, be sure to choose inspection times when your home’s interior receives maximum sunlight.
Focus on the key drivers
Should the season influence whether – and precisely when – you list your house for sale or buy another home? Perhaps. But other factors deserve higher priority, like whether your home is ready to be shown to buyers; whether you have the time to prepare your home for weekend inspections; and whether you have discussed home loan options with your lender to develop a buying budget for your next place.  
These are the key drivers that should really determine the ‘right’ time for you to start your buying and selling activity.
 
Patrick Nolan is head of home loans for industry super fund-owned bank ME. You can contact Patrick <a href="https://www.mebank.com.au/personal/home-loans/home-loans/" target="_blank">here</a>.
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Patrick Nolan

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