Upgrade Your Home, Upgrade Your Future: Smart Reno Strategies

Thinking about renovating? A few strategic upgrades can make your home more comfortable, stylish, and, most importantly, valuable. Whether you’re looking to sell or simply improve your lifestyle, these key areas could give you the best return on investment in 2024.

Where to Focus Your Renovation Efforts

1. Outdoor Areas: The Ultimate Kiwi Entertaining Spot

Decks, patios, and landscaped gardens are high on the wish list for many buyers. Creating an inviting outdoor space not only extends your living area but also boosts your home’s appeal. Even simple improvements like tidying up the front yard, adding potted plants, or installing outdoor lighting can enhance your curb appeal.

2. Comfort Upgrades: Warm, Efficient, and Cost-Saving

In New Zealand, energy efficiency is becoming a must-have. Adding or upgrading a heat pump, improving insulation, and installing double glazing or solar panels can reduce energy bills while making your home more attractive to future buyers.

3. Kitchen Refresh: Small Changes, Big Impact

A full kitchen remodel can be expensive, but minor updates (like replacing benchtops, tapware, or cabinetry handles) can make a world of difference. A fresh coat of paint on cupboards or modern splashbacks can give your kitchen a stylish lift without breaking the bank.

4. Lighting: Brighten Up Your Space

Lighting can completely transform a home. Replacing outdated fixtures with LED lighting in key areas like the kitchen, dining, and living spaces will modernise your home and create a warm, welcoming atmosphere.

5. Flooring: Say Goodbye to Worn-Out Carpet

If your carpets have seen better days, consider replacing them with polished hardwood floors or installing laminate or vinyl plank flooring. Warm-toned flooring is in trend and can make your home feel fresh and inviting.

6. General Maintenance: The Basics Matter

Regular upkeep can make all the difference. A fresh coat of neutral-toned paint indoors, fixing leaky gutters, replacing broken pavers, or mowing the lawn all contribute to making your home look well cared for - and that’s exactly what buyers want.

DIY vs. Hiring a Professional

Not all renovations need a professional, but, knowing when to DIY and when to call in an expert can save you both time and money.

DIY-Friendly Tasks:

• Painting walls and cabinetry
• Minor landscaping (adding plants, laying mulch)
• Replacing light fixtures and cabinet handle.

Best Left to the Experts:

• Electrical work (to avoid safety risks and meet regulations)
• Plumbing changes
• Structural modifications (like knocking down walls)

DIY can be tempting but always weigh up the costs of mistakes versus the price of hiring a pro!

Sustainable Renovations: Future-Proof Your Home

New Zealanders are increasingly focusing on sustainability, and eco-friendly renovations can save you money in the long run while boosting your home’s appeal. Consider:

Using Sustainable Materials: Opt for recycled timber, low-VOC paints, or eco-friendly insulation.
Installing Water-Saving Fixtures: Swap out old taps and showerheads for water-efficient models to reduce your water bill.
Exploring Government Grants: The NZ government offers grants for insulation and clean heating through the Warmer Kiwi Homes programme - check if you qualify here.
Consider a Healthy Home Top-Up: If you're looking to make your home drier, warmer, or more energy efficient, you could be eligible for a "healthy home" top-up. Several banks offer a low-interest top-up for your home loan specifically for this purpose, usually with interest rates at around 1%.

Sustainable choices not only benefit the environment but also make your home more attractive to future buyers.

Planning Your Renovation: Where to Start

A well-thought-out plan can make all the difference when tackling home renovations. Here’s how to approach it:

Step 1: Set a Budget & Get Quotes

Determine how much you’re willing to spend and make sure to shop around and get fixed price quotes from tradespeople to avoid unexpected costs.

Step 2: Prioritise Urgent Fixes

Address weatherproofing, leaks, or insulation before cosmetic changes.

Step 3: Plan Seasonally

Some renovations, like exterior painting or landscaping, are best done in summer, while indoor updates can be tackled year-round.

Step 4: Consider the Impact on Your Living Space

If you’re living in your home during renovations, plan for disruptions. A kitchen renovation might mean a few weeks of takeaways or cooking over the barbecue.

How to Fund Your Renovations Without Stress

A well-planned renovation isn’t just about picking tiles and paint colours, it’s about ensuring you can afford the upgrades without putting yourself under financial strain. Here are some smart ways to fund your project:

1. Savings First, Debt Second

Where possible, use your savings to cover renovation costs. Setting aside a “reno fund” in a high-interest savings account in the months leading up to your project can help you avoid taking on unnecessary debt.

2. Home Loan Top-Up

If you’ve got equity in your home, a mortgage top-up could be a cost-effective way to fund renovations. Just be mindful of the extra interest you’ll pay over time, consider increasing your repayments to pay it off faster.

3. Use a Revolving Credit or Offset Account

If your mortgage allows it, a revolving credit or offset account can be a flexible way to fund renovations. These options let you borrow as needed while minimising interest costs when managed well.

4. Personal Loans or Credit Cards? Tread Carefully

While personal loans or credit cards can provide quick access to funds, they often come with higher interest rates than mortgage lending. If you’re going this route, make sure you have a clear repayment plan in place.

Final Thoughts: Plan, Prioritise, and Spend Wisely

Renovating your home is an exciting process, but it pays to be strategic. Focus on upgrades that enhance comfort and value, and make sure your financing choices align with your long-term financial goals. Need help structuring your finances to make your reno dreams a reality? We’re here to help, because smart renovations start with smart financial planning

Want to discuss your mortgage options to help renovate your home? Get in touch with one of our expert mortgage advisers today (link to 15 min mortgage chat page)

Click here to book an obligation-free chat with one of our financial advisers.

Article by Sarah Maclennan

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.