Renovating a home for either yourself (on buying a property) or for the next owner or tenant (if you're selling a property) will add to its value.

But with today's market being an extraordinary one, are renovated properties holding their value against new, or well-maintained, homes?

And for buyers and sellers considering a renovation - is this worth it in today’s real estate market?

Let's take a look.

Is renovating a home worth it in today's market?

Yes - and this is despite the fact that there are plenty of new properties on the market which don't need renovations.

But real estate is about both supply and demand - and the demand for older homes from timeless architectural periods ie Victorian, Art Deco or Californian bungalows is huge.

Combined with this demand is the fact these properties are very scarce, especially when compared to new homes.

Yes, the latter looks very nice and won't need expensive renovations. 

But older homes which may need renovations are often better built and have more generous proportions than that brand new unit down the street.

Don't forget too that new properties often sell at a premium with off-the-plan properties often being valued for far less than what the buyer paid.

As well, new estates can be further away from the CBD than that of older or established homes and together with their smaller blocks will mean a much smaller land-to-value ratio.

While newer, established homes are not as scarce as these much older homes, similar reasons for choosing such properties remains.

These established homes are also often set on larger blocks than those of new properties, meaning they have a higher land-to-value ratio.

Are renovated properties holding their value?

Yes.

A renovation done well - even a DYI, budget-priced one - will attract both owner-occupiers and investor buyers, especially as property prices are generally still rising.

As well, and as we've discussed a lot recently, the main reason property prices are so high at the moment is that there are not enough homes in the country to satisfy a growing population.

Brand-new or near-new properties certainly ensure no renovations are necessary but as we've noted, such properties are on every corner and they also still have their own disadvantages.

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