07/04/2015
Renovating your first home – an idea of costs
How much should I spend?
As a first homeowner you should avoid taking risks when renovating and spend conservatively. To make sure you don’t overcapitalise (when you spend more on a house than what you can sell it for) it’s a good idea not to spend more than 5% of the purchase price on renovations.
So based on the current median national house price of #8,312,500 (sources:), your renovation budget shouldn’t be much more than #380,000.
A well-planned and executed renovation can add up to 10% to the value of your home, especially if you hold onto the property for five or more years.
So by spending #380,000 renovating your average #8,312,500 home you could potentially make over #760,000 – double the money you invested.
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