Should I renovate my home to sell or to simply sell?
Is it wiser to improve your property before you sell, or should you just put it on the market first and see what you can get?
If you believe the hype about property investment, there are Self-Managed Super Funds out there just waiting for your home to hit the market so they can snap it up.
That might not necessarily be the case. But even if it is, there are a number of issues to consider if you think your home could be made better through renovation.
Real estate industry veteran Bruce Bell says it is generally worth renovating if you have a 1:3 multiplier effect – that is if you can make $3 from every $1 that you spend.
Mr Bell says dollar for dollar renovations are not worthwhile.
If you are buying an apartment to lease out, then consider what it needs to step up to the next price point. This could require doing some recon on rival apartments.
The question is whether you are going to add value to the property, which means a big decision needs to be made before you buy an ageing home.
Are buyers more likely to knock the property down and rebuild? Do they want the property for land value?
It pays to think about who you are targeting before you demolish walls. When it comes to renovations, one serial renovate says the general rule of thumb is that every decade your property should double in value.