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Redecorating plan ’09
To increase your property’s value through smart improvements, know your goals, plan carefully and don’t over capitalise, says Andrew Gregory
"Whether it’s a big renovation or a minor refurbishment, the goal is to make the home a better space to live in. Improving living conditions is the name of the game"
When planning your renovations for 2009, ask yourself this: are you renovating to sell the property, or are you renovating for yourself and the rest of the household. While these two aims are not mutually exclusive, it is important to be clear about your goals to get the best results.
There are many home improvements that cost you more money to buy, than they add to the resale value of your home. This can apply to any product - from top-end home automation, to new kitchen and bathroom appliances. Known as ‘over-capitalising’, it’s a contentious topic. One could argue that almost every improvement to a home is over-capitalising in some way. And if you are improving your home for yourself and your family and don’t intend to sell the property, then over-capitalising is a moot point. The take-home message here is - don’t spend more money than you can afford, expecting to recoup when you sell the home.
As a starting point, study the local market; you can research other similar properties for sale in your area on www.squarefoot.com.hk. If, for instance, you’re considering opening up the living room to incorporate an open kitchen, look for properties with the same feature and take note of their asking price. Figure out whether the cost of the renovation will be ‘paid for’ by the increase in value to your home.
Any major renovations will usually focus on adding more space, or at least creating the illusion of space. Modern thinking will tell you that it’s a good idea to open up the floor plan as much as possible, knocking out a couple of walls to create fewer, bigger rooms. But consider the needs of potential buyers before going down this route. Space is a luxury few in Hong Kong can afford, particularly in apartments shared by extended families. If a flat sleeps more people, it is therefore worth more, which is why in most new-builds, the big developers squeeze in as many bedrooms as they can.
One desirable feature of any modern home, worth adding if you have the space, is high quality en-suite bathrooms, servicing as many bedrooms as possible. Where space is scarce, the installation of a toilet, separate from the bathroom will add value. Superior white suites and stainless steel fittings are popular along with hard flooring, such as marble, slate, ceramic tiling or vinyl.
If major renovations are outside your budget, and your focus is on redecorating, stick to a neutral decor - boring, yes, but advisable. Avoid adventurous colour schemes, gaudy interior design styles and eccentricity, especially if renovating a small-size apartment for sale. There’s no accounting for taste, as they say, and potential buyers may find your avant-garde wallpaper a turn-off. Worse, a buyer will use bad renovations and Technicolor refurbishments as a reason for a low-ball offer.
Revamping your home with a coordinated, neutral scheme will help demonstrate to potential buyers that you’re serious about making a sale. Prioritise the flooring, paint and curtains - this is the holy trinity of cost-effective refurbishments to the home. By getting rid of any tired-looking paint jobs, mouldy curtains and down-at-heel tile or parquet, you will immediately boost the interior with a fresh, new look.
Whether it’s a big renovation or a minor refurbishment, the goal is to make the home a better space to live in. Improving living conditions is the name of the game. Is the room too dark? Install a skylight or some energy-efficient downlights. Is the kitchen tired and dysfunctional? Consider a complete overhaul. The installation of a high quality kitchen will always prove exceptionally popular with purchasers, and it’s advisable to opt for a contemporary, streamlined look that sees appliances hidden in cupboards, and entire walls lined with cabinetry. Clever storage systems, such as benches with hidden shelving are worth investing in, as are dishwashers and washing machines that are raised off the ground for ease of use.
Remember that first impressions count, so if your home’s façade is lacking then it is probably worth giving it an upgrade. Improving the frontage could be as simple as replacing the tatty fly screen of the security door, or perhaps a new and stylish front door is the answer. Make sure too that any outdoor space is well-maintained. Tidy up the garden if you have one, and get rid of anything that doesn’t belong on the balcony, including that weather-beaten couch the cat sleeps on. The reality is that outdoor space in a state of disrepair is more likely to put off potential buyers than attract them. But a well-tended patio, balcony or garden is a real value add.
You would be surprised at how little things can put off buyers or decrease the sale value of a home, like an ill-fitting bedroom door or broken window pane. Remember that a home is an emotional purchase, and attention to detail will pay off. If you’re asking a couple of million dollars for your home, make sure everything is working, serviceable and liveable. Investors think the same way, estimating the cost of each little improvement they will have to pay for before letting it out to tenants.
Buyers will be put off by a bad decor in a home because of the prospect of extra work and cost once they have moved in, so whether or not you renovate extensively it’s important to bring out the property’s potential. To this end, it can be a good idea to put the bulk of your furnishings into storage before putting your home on the market. Remember a property shows best when it is minimally furnished, uncluttered, neat and tidy whatever its condition.
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