Popular home renovations that could deter potential property buyers

A modern, functional kitchen can add value as long as you don’t overcapitalise.

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Buyers may want all sorts of features in a home, but not every popular item you put in will necessarily add value – or even a dollar for dollar return.

LIFESTYLE ITEMS

Take swimming pools, for example. While it depends on your specific market and your buyer demographic, a $80,000-$100,000 investment in a pool isn’t always going to boost the sales price of your home.

Amber Boumelhem from Ray White United Group operates in Western Sydney, and despite the region experiencing extreme heat in summer, she finds swimming pools can actually be a deterrent for many buyers in that area.

Depending on where your home is, a pool may not add value. Picture: iStock

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“A lot of buyers in Western Sydney are investors rather than owner occupiers,” she says. “The first thing they look at is, ‘will the tenant maintain the pool? If I want to build a granny flat, how much will it cost to remove it completely? If I want to do a development, what restrictions do we have?’”

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Founder and principal stylist of Vault Interiors Justine Wilson says spas and saunas can also sometimes put off buyers because of “ongoing maintenance requirements” and the fact they “may raise safety concerns for young families.”

“There’s a common perception that these are premium lifestyle additions, but they are also significant cost items,” she says. “I generally recommend only installing them if you plan to genuinely enjoy them for personal use.”

Designer Justine Wilson.

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BLING ITEMS

While a good quality, functional kitchen will never go out of style, certain expensive “bling” features like backlit stone, which looks cool but doesn’t really serve a purpose, won’t necessarily deliver a huge return, says Brisbane real estate agent and McGrath principal at Bulimba and Coorparoo Jon Iceton.

“It’s the first thing that gets turned off – it’s only there for a show mechanism,” he says. “There’s no function in them. People want to dress to impress but functionality will always overcome those gimmicky items.”

McGrath’s Jon Iceton.

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Timber panelled feature walls are another case in point, says Wilson.

“Contrary to what we often see on renovation shows like The Block, installing shiplap, timber wall panels, wainscoting or VJ panelling is highly taste-specific and often trend-driven,” she says.

While it may suit certain types of character homes or country farmhouse properties, investing money into such items is risky and won’t necessarily add value just because you like the way it looks.

“Trends evolve, and what feels fresh now may not appeal to future buyers,” she says. “You may invest significant time and money into a feature that someone ultimately removes down the track.”

Butlers pantries aren’t always a value-add. Picture: Anson Smart

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LUXURY ITEMS

Unless you have a luxury multimillion-dollar home, where the absolute finest is expected from buyers, going all out and overcapitalising on a high end kitchen renovation when you could have added value with a more modest one won’t necessarily mean a higher return, Boumelhem says.

Adding a butler’s pantry when you don’t really have a big enough kitchen is another thing that probably won’t deliver, Iceton says.

VJ panelling can be a matter of personal taste. Picture: Maxa Constructions.

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“Most people would rather a larger kitchen than a smaller one with a butler’s pantry that doesn’t use the space well,” he says.

Wilson says underfloor heating is a luxury item that can cause headaches if not installed properly, leading to costly repairs down the track.

“More accessible heating options, such as heated towel rails, ceiling heating or split-system airconditioning, are generally far easier to maintain and repair if problems arise in the future,” she says.

Underfloor heating is a luxury that isn’t always wanted. Photo: iStock

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COMPLETE MONEY WASTERS

Illegal extensions and conversions don’t add value to a home – in fact, they seem to do quite the opposite, Boumelhem says. She gives the example of a client who added a back extension to their two bedroom home in order to make it a four bedroom home without council approval.

The owners thought they could advertise the property as a four-bedroom house, making it worth about $1.2 million. However, since they hadn’t gotten council approval on the extension they legally couldn’t advertise it at that range and were drawn back down to it being worth a two bedroom home at about $1 million.

“It’s a $200,000 gap right there in which the owners thought they’d be profiting that money,” she says. “But in reality, it did the complete reverse.”

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