Author: Swati Tiwary

Are you trying to make up your mind about renovating your property or make improvements in advance before a new tenant moves in? or perhaps your renovating to increase the equity in preparation for selling?

When it comes to property investment, it is recommended you review your finances from time to time. Refinancing, at a better mortgage rate could help achieve a higher return. You may also want to contact your accountant or tax specialist to see if you qualify for any or further tax benefits.

Should I be spending money to renovate my rental properties, is it worth it?

In this article, I help you understand the maths behind improving your property and why undertaking renovations on your rental property could be financially beneficial, but also why you shouldn’t be renovating as well.

Some rental owners think that renovating their property isn’t financially worthwhile.

Common views from rental/investment property owners:

• It is just a rental property. Even if I put in new fixtures and chattels in it, they will wear out anyway. Why bother?
• I don’t understand much about the renovation. I’m not certain about where to begin or whom to talk to so it’s a bit of a risky investment.
• If I make improvements in my rental property, it will be even better than our own home!

These are all valid points and not wrong to some extent, however we’re going to dig deeper to see what the data says. We will also address some of these questions in this article and hopefully provide you with enough information to make an informed/data driven decision that ultimately puts you financially better off.

If you’re looking for “specific” cost estimates, try our Renovation Cost Calculator Tools

• Bathroom Renovation Cost Calculator
• Kitchen Renovation Cost Calculator
• Reroofing Cost Calculator
• Double Glazing Cost Calculator
• House Extension Cost Calculator
• Custom Kitchen Cabinetry Cost Calculator

Calculating the potential ROI of your rental property after the renovations

A simple and quick way to do so is to approximate the annual rent increase after renovations are done. Then divide that into the renovation cost.

For instance, imagine you spend $7,000 on making improvements to your kitchen between tenancies. We don’t mean setting up a brand new kitchen, but renovations such as repainting walls and cupboards, new floors, replacing bench top or acquiring a new stove.

Consequently, you can obtain a higher rent, probably about $30 every week.

• By attracting higher income earning tenants
• To retain existing tenants with the upgrade (after the increase in rent)

You can determine your return by calculating your yearly rent increase (52 weeks x $30). Then divide your answer into the renovation cost ($7,000). You should get 0.22, and you can multiply this by 100 to get a percentage (22.28%) – and that is your return on investment, which will pay for itself after 3-4 years (assuming you’re not increasing rent further, and you’re not selling).

Real estate investors are always looking for a high return on investment (ROI) when buying rental properties. Higher returns can be achieved and influenced in many ways. Real estate renovation is one of those ways.

Renovated rental units justify a higher rental rate – but it’s important you’re spending on the “right” renovations. There are a couple of other factors behind real estate renovation:

• To maintain or improve the value of the investment property through necessary repairs or replacements
• To increase equity
• Rental property improvements to attract better-qualified tenants
• Tax advantages
• Reduced maintenance
• Lower vacancy rates

Five things you need to know before you consider renovating your rental

1. When undertaking renovations on your investment property, avoid looking at it like it’s your own home, it should be a data-driven decision. What you want for your home is not necessarily what your investment needs to ensure best return.
2. Create a strict budget and research thoroughly and ensure to create room for contingency for unexpected costs – it is common with renovations – for example, if you’re renovating the bathroom, you may find that there is water damage in the subfloor which is common with the older properties.
3. Choosing the right renovations should not only increase the property value but also the rent.
4. Good renovations are “bulletproof” In the long term, a durable renovation will outdo a fancy renovation.
5. Don’t forget to consult your accountant, finance specialists and local renovation company (project manager) – get all your ducks lined up and make an informed decision based on data.

Renovations that add value in the property

I want to make improvements to my property to add value. To achieve this, I plan to spend $15,000 to paint the interior and replace damaged carpets to increase my property value by $30,000 and similarly raise weekly rent by $30.

Sounds good in theory! But it doesn’t always plan out that way. We can definitely speculate the return on investment, and the increase in rent (but is that what the tenant wants?).

If you are looking to renovate to add value, instead of looking at the “end result” first – begin with focusing on what you are in control of which is choosing what to renovate. By choosing the right renovations to begin with (within your planned budget) backed by data – the end result of the renovations is a given. Rental property owners tend to make the mistake of assuming what they think should justify increase the value or rent, but this subjective thinking leads to making the wrong decisions. Be careful where you get your advice from as well, everyone seems to have an opinion on what they think you should do to your property.

So we’ve put together a list of renovations that proven to add value and justify increasing rent.

1. Kitchen renovations

According to Realtor.com, kitchen and bath remodels offer nearly an 85% ROI, making them sound investments whether renting or selling. In lower income locations, renovating the kitchen can be extremely expensive and not worthwhile. However, there are simple kitchen cheats that you can use to ensure kitchen makeovers are cost-effective and still create an appeal. One of these is purchasing second-hand cabinetry online and using stain-block on your old cabinetwork. Perhaps even consider replacing the kitchen cupboards and draws assuming the carcass of the kitchen is still in good condition. For mid to high income locations, a full kitchen renovation is definitely worth considering because it would appeal more to the target audience. See the finished kitchens in our gallery of kitchen designs we’ve built. But with both options, consider the value of your property and make sure not to overcapitalise.

2. Street appeal

Although this appears overly simple, re-staining your fence, painting the roof and installing a new letterbox can give your home a new look that appeals to buyers and renters alike. This kind of renovation is best suited during spring when the weather allows you to paint outside, and your paint will dry quickly because of the warm weather. If you’re looking at selling the property, painting the home is the most cost-effective way to give the home a spruce up.

3. Bathroom renovations

A bathroom renovation is widely considered to increase the value of home significantly and it’s been stated by Business Insider that it can be up to a 70% return on investment. Whether a renovation is structural or simply cosmetic, an attractive bathroom will always appeal to the savvy buyer. Browse our bathroom designs we’ve completed across Auckland. But again, the decision to make minor alterations to the bathroom or to fully renovate the bathroom comes down to the location of your property (it would resonate with the target audience, eg Location with mostly growing families would prefer to have a bath), and to ensure you’re not over capitalising. Get the right lighting – Plenty of light is essential for a bathroom, but so is a warm and cosy glow. Check your lighting and see what you can change to make your bathroom appeal to your type of buyer.

4. Gardening & Landscaping

A smart garden appeals to everyone, and it all narrows down to your audience in the location (families, working professionals, or flatting situations). One thing to note is always go for plants that don’t need much gardening time or maintenance – don’t expect tenants to look after it (if they do, great!). These may be natives that are endemic to your area. Always ensure that your garden’s front lawn is tidy and trimmed. Also, berms ought to follow suit.

5. Floor Renovations

Carpets in old rentals act as hind outs for various crawling insects, including such as ants. While a carpet can be costly, there are cost-effective options to acquire one. One of these is purchasing in bulk. You will buy them at a reduced price, and you can use the extra carpets across your multiple rentals.

The most common floor renovation for rentals is converting from Carpets to Laminate flooring for multiple reasons such as:

• Laminate flooring is much more durable, which means it will last longer then carpets (which leaves marks). After a while, carpet will start to fray and show obvious signs of wear. Although landlords can request for the carpets to be cleaned, it’s not going to stop it from general wear and tear. It’s important to note, landlords cannot get compensation for fair wear and tear, and distressed carpets usually fall into that category.
• Tenants are becoming more health conscious and carpets are much more prone to attracting and clinging onto dirt, which means they get dirty quickly and need to be cleaned regularly. So it’s preferable to both buyers and tenants that if they’re choosing a property, laminate flooring would be ideal.
• Laminate flooring is easy to clean and maintain, the process only requires a very moderately damp cloth and a sweep. For a thorough carpet clean, a specialist vacuum and shampoo is required, and it becomes more of a problem when there is spills/stains (which in some cases don’t come out)

6. Painting

Always seek professional painters to do the job – it seems like something that can be done by yourself but if not done properly, it’s very obvious and visible. Here’s an article that outlines whether you should DIY or Choose a Professional Painter. The most common painting project clients undertake is interior and exterior painting (not so much roof, normally a roof wash is sufficient), or replacing wallpaper to painted walls. Painting the property is one of the easiest and most cost-effective way to improve the perceived value of the property especially if surfaces look tired – it is also value added to potential buyers and renters. Check out blogs from Superior Painters (North Shore) for more information on painting your rental property.

7. New curtains and Blinds

Normally something easily forgotten – but it does make a difference. To give your property a refreshing impression before selling or renting it. Installing/purchasing new blinds and curtains can be as low as $2,500 for standard 3 bed home (8 windows).

8. Call in your mates

While you can have someone to provide their services in your house within a day, you can accomplish the same tasks or even more in much less time with your mates. Besides, you will have more fun doing it together.

9. Let there be light

Light shades offer decent and stunning looks in your rooms, but they can get pretty dingy after some years. Although it is relatively simple to get a replacement, you can restore their new and fresh look by performing an effective scrub. A common choice we get from home owners and rental property owners is replacing all the lights in the home to LEDs, for the following reasons:

• LED lighting uses less energy (90% less energy)
• LED bulbs last much much longer (landlords are responsible for replacing)
• No need to change the fitting
• LED bulbs are coming down in price every day!
• And lastly, LED lighting is the preferred choice for all new builds now

What is the cost of renovating a rental property?

We need to be certain that the costs of carry out a renovation will be recovered in the long run through increased capital and rental appreciation.

The cost of renovating a rental is different (due to requirements) compared to if you were renovating your own home because:

• Choice in materials – you’ll lean towards durability and what is cost effective
• Features and extra amenities will be limited, functionality will be more important
• Design will not be on top of the list, for example, you would rather choose to go with an acrylic shower base than a full tiled shower/bathroom.
• Choice in fitting/product supplier will be on the lower end (but still good enough quality to be durable and long term) – although in saying this, taps, shower heads/fittings and mixers, always choose the better quality option over the cheapest.

Here is a break down of costs you can expect to pay for different renovations:

Note: Copied from our article on: How much does it cost to renovation in Auckland for 2019

Common mistakes made when renovating an investment property

In most cases, the renovation of investment properties is regarded as an unfailing plan that guarantees an increase in rental returns.

While this seems straightforward, the truth is it’s not always the case because when operating in an unstable market, the monetary gains of improving a property may be outweighed by equity loss.

Here some mistakes that are made by renovators of investment property.

1. Ignoring market trends and audience in the location

Some people who have owned investment properties for over a decade tend to think that they are in an advantageous position to carry out renovations. But what they might not know is the market keeps on changing. Such changes range from interior designs, property value, to tenants’ tastes. Thus, you are likely to miss out on your projected returns by ignoring current market trends. So before renovating your property, undertake research on recent sales of property, analyze current trends in the market, and consult those in the property industry business. A good example is like people leaning more towards properties with LED lighting (as mentioned above).

2. Failing to monitor the rental market

Monitoring rental markets are often not in the priority list of most property renovators. But property prices keep of changing, and if you don’t monitor their trend, you might be left with vacant properties to fill after prices fall. If you have old properties, you need to keep monitoring the rental market to ensure they remain competitive.

In saying that, if the market is flat lining and not appreciating in value – it might be a good time to renovate to increase it’s value if you are intending to sell/ or increase rent.

3. Tenants living in the property

If there are tenants residing in the property you are renovating, it will cause rental income loss if they need to move out while renovation works takes place. You may also be responsible for their belongings (storage cost), electrical bill, and water bill.

To avoid all these issues associated with tenants living in the property, make renovations plans in advance and plan out the renovation in stages to minimise loss rent – try to avoid having the tenants move out or do it when they are away on holiday. For example, if you’re renovating the bathroom, hire a porta-loo for them to use for the time being (negotiate a reduction in rent as a compromise as it’s not exactly ideal). Make appropriate scheduling for delivery of renovation tools and materials to minimise issues with the tenants.

4. Overcapitalising

There are cheap alternatives that smart renovators use to minimize costs while providing added value to their clients. But cheap renovations doesn’t always mean the best return on investment, it may even be detrimental (dependant on the location of the property and the target audience).

You need to recognize the amenities and services that drive tenants’ demands. Some alternatives will drastically minimize cost and end up with a finish that delivers projected value and results.

5. Refinancing to renovate

You are likely to get into arrangements that don’t pay off, for instance, by extending your home loan to cater for your property improvement. This is because a huge portion of your returns will go into loan payment.

If you must borrow to carry out renovations, you need to be confident that your improvements will bring about higher rental returns. This will help you to evade risky situations of making zero returns, considering the unstableness of the market. We’ve put together an article exactly for this, on how to finance your renovation via loan – courtesy of Linda from Loan Market.

7 questions to ask before starting renovations on your rental property

1. How will renovation influence my rental returns?

This should be the first question you need to consider before considering any renovation. Understand your reasons for conducting a renovation and what you’re expecting in return financially.

For example, renovating a devastated three-by-two house can increase the weakly rental rate by $50. (at a minimum, always use minimums to determine affordability – not what you think it’s worth) – Your weekly rental rates might shoot from $320 to $380. In a year, you will realize an extra $2,600.

Remember to be realistic with your estimations and projections. Don’t invest less and expect huge returns.

2. Want a ballpark for your renovation?
   See the calculators →

   Repair or replace?

Never replace things that can otherwise be repaired or fixed. Since renovation is an expensive undertaking, you need to save it for those areas that require it.

In case you are working with a limited budget, and you still want to increase your returns, try these:

You can give your kitchen a new look by replacing countertops and handles, and replacing the cabinets/draws. Replace carpets and repaint walls to give the home a new freshness to it and give the impression of it feeling new.

Instead of thinking about replacing your kitchen sink or bathroom vanity, just cut costs by replacing the tapware (makes a bigger impression, if the cabinet is still in good condition)

3. What you should renovate (important)

Focus on vital and functional areas like the bathroom and kitchen, where tenants are likely to spend much time. Restoring these areas will have a huge impact on the daily living of tenants and rental returns as well. Is renovation vital to tenants?

Not every renovation work is important to your tenants. Some restoration will only enhance the resale value and not the rental value. For instance, a new toilet may appear good in the house; a tenant may regard it as just a toilet.

For your rental property to appeal to tenants, focus on aspects that are regarded highly by tenants. This includes having additional space or room and installing a heating pump for cold seasons.

4. Which material do you plan to use, and are they practical?

Although maximizing your property’s ROI is vital, you need not compromise on quality. Cheap fixtures and repair materials are prone to wear and tear fast, and you will be called to replace them sooner than you expected (focus on long term return/cost)

Besides, analyze the prices for different materials as they are likely to vary from one hardware store to another. Ensure that the materials you have chosen are suitable for your rental. About renovation materials, think more about their durability and not just costs. You will maximize your ROI by using long-lasting materials and it’s not an area to cut costs.

5. Is it too little or too much?

You shouldn’t overcapitalize the upgrades. In other words, keep it simple. The majority of the tenant will not bother to know how much that you invested in the renovation. They just want to have it functional so that it can fulfil their needs.

Be flexible in terms of considering cheaper but quality accessories. Also, think about the locality of your rental property and determine whether your upgrades would warrant an increase in rent (is it important to your target audience).

6. Is it a legal obligation to your tenants?

In New Zealand, rental laws are continually changing. From installing smoke alarms to making sure your property is healthy and safe, you should comply with all the legal obligations about rental properties and focus on these first before any other renovations/alternations.

It is worth noting that all forms of renovations should reflect and conform to the set laws as well – so make sure you’re using companies that are able to provide certificates/warranties. Rent increase also needs to conform to established stipulations. This includes giving advance notice prior to the increase.

We hope this guide has been helpful, and it gives you enough information to make an informed decision about renovating. Do let us know if you have any questions, and we would try our best to answer every question posted. Lastly, don’t forget to share your experience and tips that’s not mentioned here that you think will be valuable to those interested in renovating your rental property.

Please note: Whilst all information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the information. The information may change without notice and Superior Renovations is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.

To wrap up

If you’re looking for “specific” cost estimates, try our Renovation Cost Calculator Tools

• Bathroom Renovation Cost Calculator
• Kitchen Renovation Cost Calculator
• Reroofing Cost Calculator
• Double Glazing Cost Calculator
• House Extension Cost Calculator
• Custom Kitchen Cabinetry Cost Calculator

Have you been putting off getting renovations done?

We have partnered with Q Mastercard ® to provide you an 18 Month Interest-Free Payment Option, you can enjoy your new home now and stress less.

Learn More about Interest-Free Payment Options*

*Lending criteria, fees, terms and conditions apply. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

Still have questions unanswered?

Book a no-obligation consultation with the team at Superior Renovations,
we’d love to meet you to discuss your renovation ideas!

Did you know:

• In Auckland, construction and Industrial waste makes up of 85% of rubbish sent to landfills?

• 40% of waste which goes to landfills in Auckland comes from construction waste alone?

• When plasterboard is dumped into a landfill, it converts into methane gas which is a poisonous greenhouse gas?

The year of 2019 and 2020 has witnessed movements across the globe about minimising negative impact that mankind has on the environment. Even if you are not a front runner in this movement, it has affected everyone in some way or the other.

Whether you now choose to bring your own bag to countdown instead of buying a plastic bag or sorting your rubbish and recycling more carefully, this slow but sure change in habits comes from awareness of how our previous practices are just not sustainable for our planet anymore.

The media and government are finding ways of raising awareness about the importance of reducing, reusing and recycling our residential waste, but can we say the same about construction waste? Auckland council estimates that construction waste is the single largest waste stream with up to 40% going directly to landfills. New Zealand has 110 landfill sites with 88 of these sites in Auckland alone.

As a renovation and construction company we were shocked at these numbers and wanted know more about how our waste was contributing to our environment. As we are partnered with Green Gorilla to manage our waste, we decided to contact Phil Yates from the company and understand a bit more about construction waste and its impact on the environment.

Phil Yates, Marketing Manager at Green Gorilla

Phil Yates is the Marketing Manager at Green Gorilla. Apart from being passionate and believing in Green Gorilla’s commitment to sustainability, he also plays a vital role in raising awareness of the detrimental impact that the construction industry in Auckland has on the environment.

https://nz.linkedin.com/in/philyatesnz

Q&A with Phil Yates

Superior Renovations: How much do construction/renovation companies contribute towards the total waste in Auckland?

Phil Yates (Green Gorilla): Auckland Council estimate construction waste is the largest single waste stream, at around 40 percent of total weight going to landfill, this doesn’t include the rubble and concrete that go to clean fill and managed fill sites.

Superior Renovations: Have you seen growth?

Phil Yates (Green Gorilla): The whole industry has been in upward growth and the most recent figures from Statistics New Zealand reflect that. Auckland dominates about 40 percent of all construction work in New Zealand which reached $22.78b in 2018, 7.3 percent more than in 2017.

Non-residential building soared by almost 20 percent to $3.1b in Auckland, eclipsing residential building’s increase of 14 percent to $6.05 billion.

Superior Renovations: Traditionally how was this kind of waste dealt with?

Phil Yates (Green Gorilla): Generally construction and demolition waste is still dumped straight to landfill. This is common across most of NZ. Something to remember is that waste disposal is controlled by each local authority not by government, so there is no obligation or regulation to discourage this behaviour.

Superior Renovations: What impact does this waste have on NZ’s environment?

Phil Yates (Green Gorilla): You only have to look at the recent events on the West Coast of New Zealand where coastal erosion and storm weather exposed landfill and spread waste along the coast. There are 110 known closed dumps around parts of the country that will be exposed to the sea with just a 0.5 metre rise in average sea levels. Auckland has 88 of those sites.

Landfill is not inevitable and by designing out waste, understanding its root causes and re-engineering current processes and practices, we can alleviate its generation.

At every stage of a project, waste reduction strategies also bring financial benefits for all stakeholders and ultimately to all New Zealanders.

Superior Renovations: Are construction companies aware of the role they play in negatively affecting Auckland’s environment?

Phil Yates (Green Gorilla): There is some awareness but generally the message doesn’t seem to as much uptake as befits the issue. There is a massive opportunity for the construction industry to take responsibility and make a major contribution to the well-being of the New Zealand environment.

Superior Renovations: How much waste does Green Gorilla process per annum?

Phil Yates (Green Gorilla): Approx. 163,000 tonnes (2018)

1. How much of this is construction/renovation waste? Approx. 60,000 tonnes per annum (2018)
2. What percent of this waste is recycled? Approx. 79.8% or approx. 47800 tonnes (2018)

Superior Renovations: What are the repercussions of using a landfill for construction waste?

Phil Yates (Green Gorilla): Where to start! Let’s look at plasterboard waste which basically consists of paper and gypsum a non-renewable mineral. Put gypsum into landfill and it will decompose, releasing up to a quarter its weight in hydrogen sulphide which is a major odorous component in a landfill. It poses a potential risk to humans and causes odour problems and complaints by the residents near landfills. The paper in the plasterboard converts to methane gas which is a potent greenhouse gas. That’s just plasterboard!

Superior Renovations: Why do construction companies choose waste disposal companies that are reliant on landfill compared to environmentally sustainable companies? Is it purely the cost or lack of awareness?

Phil Yates (Green Gorilla): There is no one clear answer across the industry. It depends on the construction company management. Sometimes they just don’t care what happens to their waste as long as it’s gone from their site. There could be relationships or agreements with waste service companies that dictate their waste disposal. Or waste diversion services might not be available in their area. Pressure from the end consumer could affect some change of the ‘dump to landfill’ behavior.

We could tell by our conversation so far that awareness was a huge issue with construction waste. The second issue was the attitude towards waste. During construction and renovation, waste was the last of everyone’s worry. The focus was dealing with the renovation and waste was just considered an inevitable by product of the process.

Construction companies were not asking their waste management companies about how their waste was dealt with. This question is however important and needs to be asked. We asked Phil what Green Gorilla’s solution was? What were they doing to manage our waste? Even though green gorilla managed our waste, we were not aware of the extensive measures that they undertook to reduce, reuse and recycle.

Green Gorilla’s Solution to Managing
Construction Waste in a Sustainable way

Their Philosophy is Reduce, Reuse and Recycle

Superior Renovations: Tell me a bit about Green Gorilla

Phil Yates (Green Gorilla): Green Gorilla is the largest non-landfill owning, full-spectrum waste services provider in Auckland. Our aim is to maximise recovery, reuse and recycling of commercial, construction and industrial waste otherwise destined for landfill. Unlike several of our major competitors, we don’t own or operate landfills, which means we are truly focused on the challenge of reducing, reusing and recycling waste.

Superior Renovations: What happens to construction waste at Green Gorilla?

Phil Yates (Green Gorilla): The waste is run through our Construction and Demolition Waste Processing Facility. Here we separate recyclable materials such as timber, plasterboard and metals from landfill waste. Our wood chipping operation, diverts treated and untreated wood for use as biofuel and animal bedding and landscaping product. The plasterboard processing plant successfully separates gypsum for use in horticultural and agricultural sectors. Metals are sent to specialist metal recycling plants for processing.

Superior Renovations: What are some sustainability initiatives Green Gorilla have in place?

Phil Yates (Green Gorilla): We have been operating electric waste trucks and support vehicles since 2017, and firmly believe that being able to operate a significant portion of our services on a zero emissions basis far outweigh the additional cost of the investment. The benefits of these EVs goes beyond our business, our customers and the community.

In addition to our electric vehicle fleet, our waste processing facility is electrically powered, and our material handlers are also electrically driven, being the only ones of this type in New Zealand. Electric power for this facility and our vehicle charging is supplied by Electricity, New Zealand’s only 100% CarboNZero certified supplier.

Superior Renovations: Tell me a bit about the homestar and green star reporting?

Phil Yates (Green Gorilla): Green Star is an internationally-recognised rating system for the design, construction and operation of commercial buildings and fit-out.

Homestar assesses a house, apartment or multi-unit development against several categories including energy, health and comfort; water waste and materials.

Green Gorilla can provide waste disposal reporting necessary for achieving certification.

In 2018 the associate environment minister Honorary Eugenie Sage, announced a Waste Minimisation Fund (WMF) grant of $3.1 million to enable Auckland recycling firm Green Gorilla to divert the waste and allow materials to be reused (Beehive.govt.nz, 2018).

This grant allowed Green Gorilla to construct a highly mechanised plant in Onehunga which would allow to recover a large amount of materials to be recused and recycled. This is a huge step towards sustainable growth towards a more cleaner waste management system in New Zealand. At Superior Renovations we are proud to have aligned ourselves with Green Gorilla, a pioneer in their field of sustainable waste management. We want to make a difference not only when we can but we realise that it is a necessity for the future of New Zealand.

How you can help?

Even if you are not part of the construction industry there is a way to help the future and sustainability of New Zealand and its environment. Raising awareness is the best way that anyone can help as the lack of awareness is one of the major factors for poor waste management in New Zealand.

You can help by:

• Raising awareness by sharing this article with your friends and family
• If you are renovating or building, then ask your renovator about their waste management methods and make an informed decision.
• If you hold a position of authority in the local boards then ask your local board to review current regulations and legislation about construction waste.

Learn more about Green Gorilla by visiting their website

https://www.greengorilla.co.nz/

Common questions

Have you been putting off getting renovations done?

We have partnered with Q Mastercard ® to provide you an 18 Month Interest-Free Payment Option, you can enjoy your new home now and stress less.

Learn More about Interest-Free Payment Options*

*Lending criteria, fees, terms and conditions apply. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

Still have questions unanswered?

Book a no-obligation consultation with the team at Superior Renovations,
we’d love to meet you to discuss your renovation ideas!

Are you thinking of renovating your home?

With rampant house price growth in Auckland, more and more homeowners are not trading up but are renovating their current houses. The challenge with renovations is knowing the different finance options while maintaining a budget. A right home loan for your renovation project will make your home more liveable and also increase the home’s value when the project is completed.

The idea of renovating a property is always exciting because it promises a new aura and an upgrade to a new and modern space. However, the main obstacle standing in between people and their desired goal is the finance for the renovation.

Most people aim to get an excellent renovation deal at an affordable rate. The financing provides a great way for your ideal renovation, without sacrificing the quality. We have provided you a guide below on everything you need to know about financing your renovation.

What must I do before starting my renovation?

Before you renovate your home, you must know the cost beforehand. The cost, however, would depend on your budget, the extent of the renovation, architectural fees, and any legal/ consent process involved.

The table below summarizes some common renovation types and the range of their prices.

Now, you have an idea of what to expect when working on your project. However, the best way remains consulting with a renovation specialist. After the consultation, the next step is to decide on whether their plan of action works for you. Also, it is at this point that you mount up your budget against the specifications.

The renovation comes with added value

It is not surprising that renovating your home would see its value increase. The mortgage brokerage Loan Market, New Zealand (1) has documented similar findings, stating in its report that house value do increase with the right renovations carried out.

There are specific ways of adding value to your property to get the best results. For example, an additional bedroom would most likely carry more weight than just a bathroom renovation. The installation of home security gives a massive boost as well. If on a very tight budget, you may just opt for repainting with more neutral colors. This also adds some value to your property as it will cater to a wider audience.

A multidisciplinary approach should be taken when running your renovation project so make sure you contact the right set of people. This mainly includes a real estate agent, finance specialists, architect and a project manager.

Most common renovations that adds the most value to a home

1. A fresh lick of paint
2. Update your kitchen
3. Upgrade the bathroom
4. Create more space
5. Create an outdoor entertaining space

Reference: https://www.loanmarket.co.nz/news/top-renovation-tips-to-add-value-to-your-property

What finance options do I have for my renovation project?

Getting finance for renovation may not be as easy as you think unless you have the right person representing you.

The most common home renovations loans in NZ, include:

Bank loans: After securing your collateral, banks would give you loans with varying interests. You can navigate banks for the best loan deals or normally a broker does this for you.

Finance company loans: They are similar to bank loans in many aspects, but they have a higher chance of acceptance, non-bank lenders offer a range of other advantages over the banks; They are in a position to be more competitive and tend to offer more competitive interest rates.

Home loan: Superior Renovations collaborates with Linda Eagleton from Loan Market, and she will assess your affordability, and financial situation to decide what the plan is to borrow against your asset. At this point, you would be at an advantage if you have an existing loan, or the home has equity because you would access more funds for your borrowing for your renovation, and you would get reduced interest rates accordingly.

Where do I begin to find out more about financing my home renovation?

First, begin with booking a time with our finance specialist Linda Eagleton from Loan Market, just fill in the form below and we’ll forward your contact details on – no obligation to proceed, just free advice.

How do I track my renovation costs via financing it through my home loan?

Superior Renovations project manager will be working closely with Linda (finance specialists) at every step of the project to ensure everything is running smoothly – you will also be kept up to date at each stage.

Before kicking off with your project, check out the features on a home loan. Choosing among the various financial home loan options puts you in the driving seat for your property renovation.

These options include:

• Redraw facility

On a few occasions, you may need more money than what you have secured from your renovation loan. This is where the redraw facility comes in. It gives you access to more funds, and they are added to your home loan.

In essence, a redraw facility provides funds at the point where they are needed the most, and it does so in style. Smaller projects usually benefit more from it.

• Equity loans

With equity loans, you can know the extent of the equity that your property carries, and in turn, this helps you to fund your renovation project.

Accordingly, the finance for a renovation that you can get depends on how much equity your property has alongside the serviceability criteria. However, as a rule of thumb, you can’t get more than an 80% borrowing amount even with full ownership of your property.

• Loan top-ups

As the name implies, you can top up the credit on your current home loan. This leaves you more finance for renovation. Basically, it hinges on the standing equity that you have on your property and then gives some of it back to you.

This option evades the expenses concomitant with getting a renovation loan from external sources. However, you cannot keep drawing your interest to the initial level that you’ve agreed upon, like in equity loans. Thus, if you need more funds, then consider applying for another top-up loan. Depending on the availability, you may be restricted from borrowing a minimum amount in the range of $10,000.

• Renovation/construction loans

For bigger projects, your borrowing for renovation may hit six figures, like if you want to add a larger ground floor. Projects like this require a different financial type like in a renovation or construction loan.

Construction loans take care of your renovation in stages. This is different from customary residential home renovation loans in NZ, where a one-time amount is given.

A bit about Linda Eagleton

Superior Renovations Finance Specialists from Loan Market

Linda prides herself on high levels of customer service and communication. It is important that you fully understand the process and feel comfortable at all times. She will work beside you and represent to the bank, on your behalf to achieve the best possible outcome for you.

How Linda will work for you:

• Quickly assess how much you can potentially borrow, estimate your what your repayments will be and convey the best lender to suit your individual needs.
• Negotiate with the banks (or lender) on your behalf to secure an approval and a competitive market offer for interest rates. (Linda works with over 25 banks and lenders.)
• Advise you on the best loan structure to suit your individual circumstances, so your mortgage is meeting your requirements now and also in the future.
• Provide ongoing expert financial advice for the life of your loan.
• Linda’s service is at no cost to you.

Interested in having a no-obligation chat with Linda?

Fill in the form below to get in touch, and she will organise a time/day that suits you to have a sit down and chat.

Kamalpreet Kaur

Bath & Tile (NZ) Ltd

“As I have seen them with dealing with their client, I have seen their professionalism in their work, so we can recommend them confidently to people to deal with them – very confidently because we have seen how hard working they are, and as I mentioned the word patience they do have….”

Albany, Auckland

www.bathandtile.co.nz

Still have questions unanswered? schedule a no-obligation consultation with the team at Superior Renovations

Todd Chandler

Full House Renovation

“It now feels like a big, simple, inspiring space, whereas before it was a big space but it was very dated and there was a lot of distractions around – now it’s quite a nice clean, modern, minimalist feel to it. It felt like before, it was a 1980’s home, but now when you walk in, the house is impressive, it’s a lovely space to be in, it feels impressive and everyone who comes here are impressed and enjoys it – but it still feels like a home..”

Glendowie, Auckland

Todd’s Full House Renovation Project included:

☑️ Renovation of the toilet
☑️ Bathroom Renovation x 2
☑️ Laundry Renovation
☑️ Full Interior Painting
☑️ Desk Renovation
☑️ Interior door replacements
☑️ Interior Stairs and Balustrade Installation (Glass)
☑️ Wallpaper Removal and Plaster
☑️ Exterior Painting and installation of Balustrade

Still have questions unanswered? schedule a no-obligation consultation with the team at Superior Renovations

Follow these practical steps before starting your renovation project.

Deciding to renovate your house is a big decision. Renovating your home increases the resale value of your home (particularly across Auckland’s most expensive suburbs), brings more comfort to your daily life and showcases your creative side!

Whatever is your motivation, a successful home renovation lies in smart planning. If done correctly, it can be completed on time and on budget. With extensive experience in home renovations in Auckland, we know first hand what it takes to plan and execute a successful house upgrade.

We have gathered all the information you need to kick-start your stress free home renovations Auckland

What do you want to change?

The best way to start planning your home renovations is by making a list of all the things you’d like to change. This is a crucial step in your planning process as it will help you to finalise your wish list. The list might include anything from “must-do” repairs to re-modelling and refurbishment. It’s also worthwhile to note things that you’d like to keep and preserve. For examples, if your current house features beautiful antique windows, you might want to keep them and figure out a way to safeguard them against any re-modelling pitfalls.

The next step is to describe your day to day life and to write down some of the most common problems you’d like to solve. An example is a growing family having to deal with only one bathroom and toilet. Once you identify your pain point, it would be easier to come up with solutions and prioritise your wish list. It will also help you see what “needs to be done” vs what you “would like” to do which can save you money in the long run.

Setting a budget for your house renovations Auckland

No two houses are alike, and the improvement costs differ from project to project. The final renovations cost will depend on your home’s current condition, age and the scope of the work you plan on doing. However, there are a few things you can do to keep yourself within a budget.

Look closely at what you already have. For example, some Auckland homeowners might assume that they need an extra floor space when all they really need is to rearrange their interior walls!

Consider long term investments. Energy efficient lighting means long term savings. Likewise, water conserving features and high-efficiency heating systems will save a considerable amount of money over time. Our renovation specialists have extensive experience in renovating homes especially in the Auckland market. Hence they can help you make wise decisions for long term investment homes.

Do the work in stages. Doing your home renovations in phases can allow you to achieve your goals without putting you through an undue financial burden. We can help you develop a renovation plan and come up with the proper sequencing of tasks and timelines.

Renovating your Auckland home is a big undertaking that requires a lot of careful planning. However, with the right help and tools, you can achieve your dream home without breaking the bank. We hope you found these tips useful. As always, feel free to contact us here if you have any questions!

Need more information?

Take advantage of our FREE Complete Home Renovation Guide (48 pages), whether you’re already renovating or in the process of deciding to renovate, it’s not an easy process, this guide which includes a free 100+ point check list – will help you avoid costly mistakes.

Download Free Renovation Guide (PDF)

Still have questions unanswered? schedule a no-obligation consultation with the team at Superior Renovations

WRITTEN BY SUPERIOR RENOVATIONS

Superior Renovations is quickly becoming one of the most recommended Kitchen Renovation & Bathroom Renovation company in Auckland and it all comes down to our friendly approach, straightforward pricing, and transparency. When your Auckland home needs renovation/ remodeling services – Superior Renovation is the team you can count on for high-quality workmanship, efficient progress, and cost-effective solutions.

Get started now by booking a free in-home consultation.

Request Your In-home Consultation

Or call us on 0800 199 888

www.superiorrenovations.co.nz

Have you been putting off getting renovations done?

We have partnered with Q Mastercard ® to provide you an 18 Month Interest-Free Payment Option, you can enjoy your new home now and stress less.

Learn More about Interest-Free Payment Options*

*Lending criteria, fees, terms and conditions apply. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

Looking for custom builders in Auckland? Read this checklist first

Building a new home is one the most substantial investments Aucklanders will ever make. So it’s crucial to get it right the first time.

Needless to say, hiring the best North Shore builders is essential to your project’s success. Depending on your renovation needs, you will be working together for an extended period of time. And it’s vital that there are trust and clear communications.

You may have heard horror stories about problems with builders, budgets spiraling out of control and sites left half-finished. But the reality is that the vast majority of builders are both professional and capable, and you can do a great deal to avoid bad experiences simply through the way you choose, manage and communicate with them.

So, what are the things you should be looking for when hiring the right North Shore builders? Here is our ultimate guide to working with a custom home builder.

1. What is the role of a custom home builder in Auckland?

A good custom home builder is an integral member to the construction project. They act as advocates for the homeowners and help establish realistic budgets, costs and the project timelines. They also monitor the progress of the design and construction process by serving as liaisons between the homeowners and the contractors.

Here at Superior Renovations, we have our own tried-and-true systems in place when it comes to renovating your home and we expect the same for construction/building companies. From the initial design consultation to the final handover, our team will be there to make sure you’re getting the most out of your home renovation. We pride ourselves in dedication to quality while working within your budget. As a guarantee of our quality, we promise to cover all costs associated with any faults in materials or structures upon the completion of the project.

2. When should I hire custom home builders?

We recommend hiring your North Shore builders early in the design and planning process. Doing so will guarantee that your project’s scope and costs are in line with your expectations. Because custom home remodeling is one of a kind, it is crucial to have the builder and the designer working together as a team. This way they will be able to leverage each other’s collective knowledge and expertise.

We understand the benefits of collaboration, and that is why we offer in-house design and planning services. Our experienced interior designers have knowledge and skills necessary to bring your dream designs to life. You can always make changes to the design drafts until you’re 100% happy with the final results.

3. What should I look for when hiring a building company?

Well qualified North Shore builders do not need to be flashy. The right custom home builder only needs to have experience, resources, organisational skills and a genuine interest in helping you build your dream home, see below on what you should look for.

Here are the top 5 things Aucklanders should be looking for in a potential builder:

1. An impressive portfolio of past projects (check their website)
2. A proven track record with projects of similar scale and detail
3. Great communication (look at their online reviews)
4. Excellent organisational skills (check for systems)
5. Great real customer testimonials (Google them, and check out their facebook reviews)

Here are our top 6 home builders in Auckland based on their reviews on Google

(As at 01-12-2019)

• Ashcroft Homes (4.7 Rating, 25 Reviews)
• Your Builder (4.7 Rating, 17 Reviews)
• QPC Builders (4.5 Rating, 8 Reviews)
• Universal Homes (4 Rating, 10 Reviews)
• Dan Joint Builders Limited (5 Rating, 13 Reviews)
• G.J. Gardner Homes (4.3 Rating, 10 Reviews)

What is the difference between renovation and construction?

Renovation means “restore to a good state of repair.” In other words, dilapidated buildings or poorly maintained houses are sometimes considered to be in a state of disrepair. To renovate a house or building means to resurrect that structure from a state of disrepair.

Residential construction is the business of building and selling individual and multi-family dewelling, or building new from scratch.

Finding the right builder for your project might be a daunting task. However, doing your homework and settling on the right candidate will help you make a better decision and reap the rewards of having a beautiful home.

Need more information?

Take advantage of our FREE Complete Home Renovation Guide (48 pages), whether you’re already renovating or in the process of deciding to renovate, it’s not an easy process, this guide which includes a free 100+ point check list – will help you avoid costly mistakes.

Download Free Renovation Guide (PDF)

Still have questions unanswered? schedule a no-obligation consultation with the team at Superior Renovations

WRITTEN BY SUPERIOR RENOVATIONS

Superior Renovations is quickly becoming one of the most recommended Kitchen Renovation & Bathroom Renovation company in Auckland and it all comes down to our friendly approach, straightforward pricing, and transparency. When your Auckland home needs renovation/ remodeling services – Superior Renovation is the team you can count on for high-quality workmanship, efficient progress, and cost-effective solutions.

Get started now by booking a free in-home consultation.

Request Your In-home Consultation

Or call us on 0800 199 888

www.superiorrenovations.co.nz

Have you been putting off getting renovations done?

We have partnered with Q Mastercard ® to provide you an 18 Month Interest-Free Payment Option, you can enjoy your new home now and stress less.

Learn More about Interest-Free Payment Options*

*Lending criteria, fees, terms and conditions apply. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.