Homeowners carry out renovation for various reasons. For some, repairs are done to increase the value of the house in the market. Whatever the reasons are, renovations are essential for the maintenance of a home.
However, before embarking on a renovation—a grand renovation that costs a lot or a few changes here and there—you need to consider a few financial factors.
Dubai real estate agencies have observed that homes that are newly renovated sell for higher prices than their unrefurbished counterparts.
If you’re looking to renovate your home, here are three things you should take into consideration:
- What is the goal of the renovation:
Before any renovation is carried out in a house, the purpose of the improvement must first be defined. Figure out what you want to achieve with the renovation? Which part of the apartment do you want to improve?
These questions are essential because they help you know the financial requirements needed to complete for the renovation.
Most times, the buyers’ demand and market trends inspire these goals.
For example, Millenials love bigger kitchens. So, if the buyers’ demographic is Millennials, your renovations will be targeted towards satisfying them. Also, if your target demographic is families of three or four, then you’ll need to renovate the house to fit their needs.
- Budget and cost of materials:
Having defined what and why you want to refurbish, the next thing is to look at your budget. How much do you have for renovations? Can you get a loan to help finance the improvement?
While making the budget, you also need to consider the price of materials in the market. If you are taking a loan, for example, you will factor in the costs of materials into how much loan you will need. Also, ask yourself, ‘Are these renovations worth it?’ If your renovation budget is high, and the return on investment is low, look for cheaper renovations that yield better ROI. If the house is one of the new projects by Meraas like Port de la mer or of Emaar like Emaar Beachfront apartments, then you don’t need so much money to make it look better.
- Find balance:
Of course, selling the house is a top priority. But you don’t want to overdo it and get no buyer.
If you spend so much on renovations, exceeding your budget or having a robust budget, you will need to recover all that investment from the sale of the house. Overdoing it may lead to having a house that far exceeds the market price of homes. And when compared to how much other apartments in the area are selling, you just might be getting no buyers soon.
Balance also means the renovations do not affect the bedroom and living spaces, with some rooms being more prominent than others. An imbalance in the ratio of the rooms would scare potential buyers away,
Renovations are good for your home’s maintenance but don’t rush into it; else you’ll rush into a substantial financial loss.