Expert Property Valuer Belinda Botzolis Reveals How to Boost Your Property’s Value
Belinda Botzolis, from The Add Valuer
A common concern among our clients is how to avoid overcapitalising on their properties, especially with the rising costs of renovating and building. Many are finding that their budgets don't stretch as far as they'd like, forcing them to prioritise their spending carefully.
If you’re on a limited budget or seeking a more strategic approach to your renovations, you will find the following interview invaluable! We sat down with Belinda Botzolis, a respected property valuation expert with over 17 years of experience and $12 billion in property valuations, for her industry perspective. In this article, Belinda shares her insights and advice on where to focus your renovation budget, common mistakes to avoid, and how to assess your home's value in today’s market.
Heliconia: "Belinda, thank you for joining us today. Our clients often struggle with where to allocate their renovation budgets, especially when it comes to different types of property investments. Could you share your advice on where to focus spending for the following scenarios?"
Belinda: "Absolutely! The focus of your budget should vary depending on your investment strategy. Here’s how I would approach each scenario:
An Investment to Flip:
"When preparing a property for sale, especially if it has been used as a rental, it’s important to focus on an overall renovation. Tenants often don’t perform maintenance or upgrades, so landlords typically delay these repairs until necessary. Concentrate on cosmetic and aesthetic upgrades—think new kitchens, bathrooms, and landscaping. The goal here is to meet market demands and present the property in the best possible light to achieve the highest sale price."
An Investment to Rent:
"For a rental property, the focus should be on creating a clean, functional, and well-maintained space that meets local market standards. High-end products aren’t necessary; instead, ensure the property has good quality, functional inclusions, like a dishwasher, adequate heating and cooling, and leak-free taps. Remember, all of your renovations can be depreciated through a tax depreciation schedule, which can be a significant advantage."
A Forever Home:
"Renovating a forever home is where people can easily overcapitalise due to the emotional nature of the project. It’s natural to want the best when you’re thinking long-term, but it’s crucial to balance your desires with the reality of your budget. Create a needs and wants list to help prioritise what’s truly essential and avoid unnecessary expenses that can lead to overcapitalisation."
Heliconia: "What are some common mistakes you see where people overspend on the wrong details or features?"
Belinda: "A common mistake is overspending on high-end kitchen appliances and luxury bathroom fittings. While these can be attractive, they often don’t significantly increase a property’s value unless it’s located in a very affluent area where such features are standard. Another frequent error is investing in highly personalised spaces like bespoke home theatres. These might cater to your specific tastes but may not appeal to a broader market. Additionally, following the latest design trends without considering their lasting appeal can lead to choices that quickly date the property."
Heliconia: "What would you say to someone who views their existing home as their forever home and isn’t worried about resale. How would you encourage them to think about their home's value?"
Belinda: "Even if you see your current home as your forever home, it’s important to consider its value as an asset. Life is unpredictable, and circumstances might arise where selling becomes necessary. By making smart, value-adding improvements—like energy-efficient windows, solar panels, and additional storage—you’re not only enhancing your living experience but also maintaining or increasing your home’s market value. These improvements can provide financial security and better leverage for refinancing, should you need it in the future."
Heliconia: "The construction budget landscape has changed significantly in recent years. What advice would you give to those concerned about overcapitalising in this current climate?"
Belinda: "It’s true that construction costs have risen, and it’s crucial to be realistic about your budget.
Here are my top 6 suggestions:
Prioritise Essential Upgrades: Focus on necessary improvements for safety, functionality, and energy efficiency, as these typically offer a good return on investment.
Phased Renovations: Consider breaking your project into phases to spread out expenses over time, making costs more manageable.
Understand Market Trends: Stay informed about what features are in demand in your local market, guiding your renovation decisions to add value.
Consult Professionals: A property valuer can help assess which improvements will add the most value in your specific market.
Set a Realistic Budget: Understand that material and labour costs have increased and plan for potential overruns.
Quality Over Trends: Opt for durable, high-quality materials that will stand the test of time rather than chasing the latest trends.
“By focusing on these strategies, you can ensure that your home not only meets your needs but also retains its value and appeal in the long term."
A huge thank you to Belinda for the incredibly practical and actionable advice!. If you are looking to renovate, whether for a flip, rental investment, or your forever home, we are sure these insights will prove invaluable for avoiding common pitfalls and ensuring your property remains a valuable asset.
If you're planning to renovate or build, reach out to Heliconia early in the process. We'll help you prioritise your budget, offer smart design solutions, connect you with a reliable and professional team, and save you stress and indecision with our extensive experience!
About Belinda Botzolis
Widely recognised as “The Valuer” on social media, Belinda demystifies the complexities of property investing and building. Her innate ability to simplify the intricate world of property has resonated with a broad audience, especially everyday Australians looking to make informed decisions and grow their wealth. Belinda specialises in property valuations, tax depreciation schedules and investment coaching.
You can contact Belinda on hello@addvaluer.com or visit www.addvaluer.com