personal loan – The Interiors Addict

How to make a big impact on a small budget in your home

In partnership with Latitude Financial Services

As you know, we recently finished a couple of major jobs in our own reno: a new kitchen and a new floor. The photoshoots for these are imminent so I look forward to sharing the before and afters soon!

Kitchens and floors are pretty major investments but there are lots of other things you can achieve in your home for a few thousand dollars which make a huge impact. Here are some of my top suggestions:

Lighting: When we moved into our nanna house we changed all our lighting, swapping old and very dated pendants for gorgeous new brass chandeliers with LED filament-style bulbs as well as rattan pendants from Beacon Lighting. Total cost including the electrician was less than $3,000 and the difference it made was priceless!

Window treatments: We went for plantation shutters from DIY Online Blinds which aren’t the cheapest option but they make a huge difference (in our case, hiding some old and yellowing window frames which is a lot cheaper than replacing all the windows and the window treatments!). You could probably do all new matching blinds in your home for less than a couple of grand.

Paint: We had our whole house painted internally before we moved in (so much easier than moving furniture!). It cost a few thousand but it made the world of difference. We did most of our home in Haymes Greyology 4. We are now saving up to have the red brick exterior painted. This is a more expensive job but it really will be the icing on the cake! And then there’s the driveway (it never ends when you buy an older home!).

Walls painted in Haymes Greyology 4 in our bedroom

Doors: The last job on my list before Christmas is replacing all my internal doors, and my front door, with some new ones from Corinthian Doors. I’ve found the more we update things around here, the more the older/cheaper things stand out! It’s time for some quality doors and I’m confident they will make a huge difference. I can’t wait to share them with you.

Bathroom on a budget: With all the work we’ve been doing, we sadly can’t afford a full bathroom reno (or two!) just yet. But after Christmas we’ll be embarking on a family bathroom refresh on a budget which I hope you’ll all love. The idea is to have the bath and tiles professionally sprayed, paint the walls, replace the vanity and possibly tile over the floor, all for well under $5,000.

I talk more about these ideas in this latest video with Jess Aloi from our partners Latitude Financial Services.

For help achieving your reno dreams, speak to Latitude about your best borrowing options.

Photography by Jacqui Turk.

How much should I spend on my reno? Part one: valuations

Number crunching is one of the less exciting parts of renovating – but unfortunately it’s also one of the most important. Whether you are turning over an investment property or renovating your home as a long-term nest for your family, it makes sense to know you are not overcapitalising and the money you are spending is adding value in the long-term. What’s more, the scope of the work can often determine the best type of finance you need to put in place.

This is the first part in a series about steps to take to ensure the hard work you put into your renovation pays off financially.

Know where you stand – valuations matter!

Start with the end in mind – is the work you are planning going to add more value to your property?

Even if you plan to stay in your home for the foreseeable future, it’s important the work you undertake not only improves your lifestyle, but that it’s work that actually adds to the value of the house and you know where you stand financially up front.

In my work as a broker, I always advise clients to get two valuations. Having your house valued by both a real estate agent and a registered valuer is one of the most beneficial steps you can take. It’s best to have valuations from both, because the two tend to look at property values differently. Real estate agents look forward to what people will pay in the future, while valuers look in the rear vision mirror at what people have already paid for similar properties.

Show them your plans and ask them what they think your property will be worth when the work is completed. A good rule of thumb with valuations from real estate agents and valuers is to work with a number somewhere in the middle of both estimations – agents tend to be optimistic and valuers conservative.

Once you have an idea of what your home is currently worth, what it’s estimated to be worth on completion and how much the work you are planning is actually going to cost, it will become apparent whether or not your renovation is going to add value.

Ask the real estate agent what buyers are looking for in your area and how your house compares. For example, if they tell you swimming pools are turning people off buying, you may need to reconsider your plans to install one, especially if your budget is going to be tight. It may make more sense to use your pool money to install another bathroom or an extra bedroom.

As well as obtaining professional valuations, make sure you do some legwork yourself. Go to as many open houses in your area as you can to get a feel for what’s on the market and how much it’s fetching.

Use your valuations to guide your design choices. If your house has already significantly increased in value thanks to its location, it is less likely you will spend more than the value you’ll add in the long-term and you would probably do well to upgrade the finishes you install. Look at the kitchens and bathrooms in similar houses that are on the market and use them as a guide as to what buyers are expecting. Similarly with floor plans and soft furnishings.

Your valuations can also steer you in the right direction when it comes to how you are going to finance the work. If you are planning a major renovation that’s going to add significantly to the value of your home, you may choose to leave more of the work in the hands of a builder and take out a construction loan that is paid directly to your contractor.

For a smaller DIY reno that is going to enhance your lifestyle more than the value of your home, a personal loan could be the way to go, while a renovation you plan to complete in a few stages may be best serviced by leveraging the value of your home as work progresses.

Arming yourself with a thorough knowledge of the market before you begin is a solid foundation for any reno, especially one that’s close to your heart!

— Paul is the Director of CVG Finance, a leading brokerage offering financial services across all areas.