Home renovation hacks: Smart moves that could add $100k of value to your property

Solar panels, squeezing an extra bedroom into a floorplan, a new kitchen bench and bathroom tiling could be enough to add $100,000 to the value of Melbourne’s dated and daggy homes.

And with the Victorian capital tipped for home price rises as soon as there is an interest-rate cut in 2025, those making a start on cashing in this summer could be set for big rewards for things as simple as fresh paint, new flooring or even a garden update.

But expert property flippers have warned tradies and builders will be flat out once the market changes gear, and there could be 10 per cent increases in the cost of getting basic home renos done as demand surges.

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The Block regular and expert property flipper Frank Valentic said adding an extra bedroom to a home would typically boost the price by $100,000-$150,000, and in some homes could be done for under $10,000 by walling off a portion of a larger living zone.

Old homes that you can update over summer could help add up to $100,000 in value.

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Investing in a bathroom or kitchen renovation would also often double the money you spent, while converting a laundry to a bathroom could have similar costs to the $15,000 needed to renovate an existing bathroom.

But add an extra number to the bathroom icon on your home’s listing the next time you sell, and the Advantage Property Consulting boss said you could potentially push it up a price bracket.

Those without the budget for extensive home works could simply update their front fence and garden, paint their front door and also boost their home’s “kerb appeal” and add as much as 10 per cent to its value.

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Investing in a kitchen renovation could also double your money. Picture: istock

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Mr Valentic added that if you had room to use gravel to add an off-street carpark to your home you could significantly compound the benefit of a frontyard update.

“Anything that increases the icons on the internet will generally make you more money,” Mr Valentic said.

“And if you can increase the bedrooms, add a bathroom and a carpark, you will be getting the cigars and champagne out.

“But if you only have $30,000, don’t do a new kitchen and bathroom and have the rest of the house like a dog’s breakfast; do the basics like refreshing with carpets and paint.”

In the backyard, he said landscaping and a pergola that sets up an “outdoor room” would usually come with a good return.

Advantage Properties buyers advocate Frank Valentic said one of the biggest things that can add value is adding an extra bedroom, and can be done cheaply if you can wall of part of a living area.

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Eda Property Group founder Anissa Cavallo said there were ways to add $100,000 to a home’s value without structural changes, and one of the best ways in coming years would be adding solar panels.

While buyers would likely pay a bit more for homes with better energy efficiency in the future, Ms Cavallo noted that Victoria’s solar panel rebate scheme could halve the cost of adding them to a home.

While a full kitchen or bathroom refit can be expensive, Ms Cavallo said just replacing the benchtops with a thicker stone surface and updating any damaged or old-fashioned splashbacks would make it appear these spaces had been completely refreshed.

“For a bathroom that may mean ripping out old tiles, and you might spend $5000-$12,000 … but with good quality tiling that stands out a little bit, that could add a lot of money — potentially $100,000 more to a $700,000-plus home,” Ms Cavallo said.

Frank Triantafyllou has tackled a dozen home updates across his own properties and investments. Picture: Tony Gough

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Storage is also important for families, and finding ways to increase cabinetry without impacting living spaces could generally be done fairly cheaply in laundries or under staircases.

But one of the best value spends was putting in floorboards to living spaces that are carpeted.

“You might pay $5000 for the average living room, but for flooring you will get that money back and then some,” she said.

Ms Cavallo also advised against anything requiring significant construction work, as with elevated costs from most trades and builders at present this was unlikely to come back to you in full.

“Builders and developers are finding it hard to make a profit, so doing too much can cost you profit,” she said.

However, for anything that requires trades she advised getting plans in place this summer, noting that she saw price rises as highly likely in 2025 — but warning this could increase the cost of getting works done on your home by as much as 10 per cent.

Bathroom renovations can be costlier, but can add a lot of value to your home.

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Anissa Cavallo of Eda Properties highlighted that “good quality tiling that stands out a little bit, that could add a lot of money”.

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For those who have more serious structural issues in their home, Ms Cavallo noted that a cosmetic refresh could still help buyers see themselves living there and make them more willing to purchase it — even if their building inspection said more work was needed.

“You need to be logical and talk to agents about what is a reasonable expectation for what home renovations’ impacts on the sale price will be,” Ms Cavallo said.

“A good local agent will tell you what is worth doing in your area. But don’t trust an agent that says don’t do anything, unless the home is absolutely immaculate.”

Mr Valentic agreed that restraint was important.

“You want to get $2 back from every $1 you spend,” Mr Valentic said.

“And if it’s a $1m home, you don’t want to spend more than $100,000 total. For a $500,000-$600,000 home, you are looking at $50,000-$60,000.”

He warned people off adding pools or granny flats, which were less likely to cover the often six-figure cost to install them.

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