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Media Release |
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Poor Renovation Design can Lower Resale Value
Thursday, 17 February 2011 10:18
Archicentre, the building advisory service of the Australian Institute of Architects today warned people renovating properties for resale and investment purposes that they could devalue their properties with poorly planned and constructed renovations.
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The main bedroom in a recent renovation by |
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Edward Lukac, Archicentre South Australian spokesperson said unfortunately many people invest in property to secure their financial future without a planned strategy or any idea of the cost of renovating their home or investment property.
"With an ageing population many of today's baby boomers are purchasing homes to renovate and live in with a view to gaining capital on their resale when they move to smaller or assisted accommodation in their later years. For this group of renovators the success of the renovation can have a major impact on their financial future."
"People actually devalue their investments with poorly conceived designs or inappropriate materials, providing a negative cash flow for the investments and poor re-selling options."
Mr Lukac said that some of the worst examples we have seen involve period houses where poorly designed flat roof extensions have been added, houses painted in garish colours, and money poured into expensive bathroom and kitchen fittings at the expense of light and space. "The renovation decisions people make today will certainly impact on the resale value of their property and the extent of their retirement funds in the future". "The basics of planning and costing the renovation to work within an available budget, combined with a clear understanding of how to tender the work out and manage the renovation project, is fundamental to the success of any renovation." Mr. Lukac said that a well planned and executed renovation or extension could see the owners recoup their investment and a greatly enhanced lifestyle while concurrently enjoying the benefits of a greatly improved home for a long-term future. Archicentre is often called in when a renovation is half way through and people recognise that the renovation will not deliver what they envisaged. "At this stage it is very difficult to reverse a badly designed renovation where a lot of money has already been spent, however, this is the risk people run if they have not followed careful and professional planning."
"Another costly mistake is to inadvertently change the house from one market segment to another, for example converting the third bedroom of a three bedroom house into a walk-in robe and ensuite will change the house from a three bedroom house to a two bedroom one with a drop in value of possibly $100,000 after spending perhaps $40,000 on the project".
Archicentre has released a free Cost Guide for download from its website to help renovators cost their new renovation under the renovators section of the Archicentre website or download at: http://www.archicentre.com.au/images/stories/pdfs/Archicentre-Cost-Guide.pdf
Archicentre is conducting a Free Adelaide Renovation Workshop
6.30pm Wednesday 23 February 2011
Venue: Archicentre, 100 Flinders Street, Adelaide.
For workshop bookings please call 1300 13 45 13. For website bookings: www.archicentre.com.au
Media Enquiries:
Ron Smith, Corporate Media Communications, Archicentre - Mobile: 0417 329 201