thisplace.com.au - The Real Cost of Renovating

Most homeowners decide at some stage to improve their property in some way, whether to enhance their lifestyle or to improve the value of the property. However, renovating a property to add value can be a tricky business.

If you improve your home so that it becomes worth much more than the average property in your area, it could be difficult to sell at the price you need to recover your money.
To avoid over- capitalising, the cost of renovations should be kept in proportion to your home's market value
A smart move is to add value to the property above what is spent
If your budget is no more than $5,000 , you could consider replacing windows and doors, painting or landscaping - all of these are highly visible renovations and when done well can greatly add to the value of a property
If you are willing to spend up to $20,000, you could add a patio or refurbish the kitchen , bathroom or laundry
Prices of new kitchens and bathrooms start at around $10,000 and generally add about $15,000 to the resale of a home.
Renovations over $20,000 could include extensions, a refurbishment throughout, or even adding a granny flat.
Extensions can add up to 50 per cent to the value of a property because of the sense of space they create.
The bottom line is you should spend enough to get the house looking good, to make it work for you and your lifestyle, and to hopefully sell it one day at a profit.

Source: Brochure from Australian Home Beautiful in association with the Commonwealth Bank