How to increase your home's value
Renovations that consistently lift valuation and ones that look great but don't pay back. A broker's view of what valuers actually reward.
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.
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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