How to increase your home's value
Renovations that consistently lift valuation and ones that look great but don't pay back. What valuers actually reward, and what just looks good.
What valuers reward
Bedroom and bathroom counts. A 2-bed becoming a 3-bed often jumps a valuation tier. An ensuite added to the master usually pays back its cost. A second living area (rumpus, separate dining) lifts liveability for the family-buyer market.
Kitchen, quality (not just newness) matters. Stone benches, integrated appliances, proper joinery. Bathrooms similarly, frameless shower, floor-to-ceiling tiles, double vanity in main.
Outdoor living, covered alfresco, deck, established landscaping. In Australian markets these are weighted heavily for owner-occupier appeal.
What doesn't pay back
Pools, only in the right suburb (typically warmer climate, larger blocks). In the wrong suburb, a pool reduces buyer pool because of maintenance perception. Personalised features, bold colours, unusual layouts, very expensive single fixtures. Solar, pays back in energy savings but rarely shows up in valuation.
Over-capitalising for the suburb, spending $200K renovating a $700K home in a $750K suburb. The valuer caps the value at suburb ceiling regardless of what you spent.
How to increase your home's value: frequently asked questions
What valuers reward
What doesn't pay back
References
- ATO: Repairs, maintenance and capital expenditure, Tax distinction between repairs and capital improvements
- Australian Bureau of Statistics: Residential property prices, Underlying housing market value trends
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