We all know that renovating or redecorating a house can increase its value – but it’s all a matter of balancing the cost versus the benefits. Renovating a whole house may be unnecessary when bits and pieces or certain rooms might do. What should you renovate for the greatest gains in home value? Does timing make a difference? We find out.

The best times to renovate

Home renovations get going when the weather is better – spring and summer seem to be the best months for renovations, especially outdoors where daylight savings means more work can be done. However, this also divides the attention of already busy contractors which may delay the completion of any major construction or remodelling. You may want to engage contractors up to six months in advance or ask if some contractors are willing to work during the cooler months. You may be doing them a favour by giving them work when it’s quiet!

The highest increases in house value

Renovating the kitchen is one of the highest returns on investments, with 52% recovered when selling your home. This could be as simple as replacing cabinets, adding islands, creating an open plan living area, or replacing fixtures. Bathroom renovations are also big draw cards for buyers, especially if they are fitted with new baths, showers, and vanities. Heated towel bars and heat flooring are also attractive. Opening up the indoors to the outdoors with an extended patio or deck and large sliding doors is what people call “an entertainer’s dream.” Beautifying the home’s front exterior can give it “curb appeal” – adding striking new doors, window fittings, fences, and lighting to make passers-by go “wow.”

Other cost-effective renovation tips

Of course, you don’t need tradespeople and weeks of labour to get a good renovation. You can just update your paint – inside and out – change out your fixtures in the bathroom or kitchen, install an air conditioner if there wasn’t one before, and swap out old lightbulbs for LED down lights or modern light fixtures. Hang some paintings, put down some rugs, update your blinds or curtains, expose your floorboards instead of carpet – there’s a whole bunch of little things you can do to improve the value of your home without spending too much.

How to finance your renovation

Most people use their savings to fund a renovation, especially if it’s just paint and a few items. Bigger renovations may require some sort of finance. Though it is tempting to use home equity release, it can add tens of thousands of dollars to your interest bill over time. Instead, talk to an online broker to find out how much you can borrow as a personal loan. You’ll pay far less in interest compared to what you’ll fork out in your mortgage over the remaining years.

With all that in mind, you can gain a lot of value for not much outlay and recoup the windfall after the sale!