“Overcapitalise”
One of the first big things to think about.
This Is when you spend more on your renovations or new building than what you can realistically sell for, in other words, to overestimate the market value of (property). So when you sell your home you do not get the return on your investment.
This is an important part of knowing when you’re ready to renovate or build, as if your planning to sell in the short term you will want to make sure your project budget is not going to go over the market value.
If this is a forever home then spending a little more on finishes and appliances is not that bad as you are not planning to move anytime soon, then to go over the market value to have high-end finishes, might be worth it for you and your family…this was the case for me!!!
You just need to think about your short-term and long-term plans, along with the “WHY” and then start to chat with a local real estate agent for the market value of your home. Your local agent should help you and give you an idea of the ideal investment to put into your home. Then go to your bank or financial planner to see what you can afford to put into your home. Once you have that information you are one step closer to taking that next step.
