80,000 invested, 680,000 gained: a renovation success with an ROI of 750% — you could achieve it too

80,000 invested, 680,000 gained, ROI 750%！

The owner bought this standalone house in central Auckland in 2011 for around NZ$400,000. Following a comprehensive renovation, it attracted 30 groups of viewers in just over 10 days on the market, before selling at auction through Barfoot & Thompson for an impressive NZ$1,085,000.

Looking at the dramatic transformation in the images below, do you also assume, as we did, that the owner spent a fortune on renovations? In fact, the owner spent only around NZ$80,000 to redo the kitchen, bathroom and flooring throughout, as well as comprehensively refurbish the roof, deck, backyard and other areas.

Now let’s look at the before-and-after results:

Kitchen

Before: Tucked away in a separate room, the old-fashioned kitchen had dated appliances, cramped space and an awkward workflow — a far cry from today’s popular open-plan kitchens integrated into living areas.

After: The attractive new kitchen faces a breakfast bar and features a black double sink. It connects to the open-plan living and dining areas, which lead onto the deck and offer easy views over the beautiful private garden.

Backyard

Before: After years of neglect, the backyard looked rather unkempt.

After: The spacious, sunny new deck complements the carefully tended garden.

Bathroom

Before: The bathroom was narrow, cramped and somewhat dated.

After: The bathroom is small, but its wet and dry areas are separated and its storage is well planned. Black handles and flooring add a refined finish.

After seeing the comparison images, do you share our impression? Every trace of the old house has disappeared, and each space turns a vision of a lovely life into reality. All this was achieved with a renovation costing just NZ$80,000.

This example makes it clear that an “expensive” renovation is never essential to achieving a high sale price for an older home. Renovations can be large or small; what matters is planning sensibly around your needs and budget. If, like this owner, you intend to renovate and resell, make sure every dollar spent delivers a return on investment. That is the smart way to increase your property’s value quickly. Here are some effective improvements to consider: 

Extending outwards

Let’s first consider a more generous budget. If your property is spacious and has a backyard, you could consider adding a bedroom suite, another living room or kitchen, or even a separate granny flat. Such additions and extensions can meet your own living needs and will undoubtedly be a selling point when the property eventually goes on the market. However, changes on this scale involve resource consent and building consent, and unexpected issues may arise along the way. For example, during an inspection, the council may require you to upgrade the existing building to meet new building code requirements. Before starting work, be sure to consult professionals in design, engineering, fire safety and structural matters, allow sufficient time, plan costs and maintain a consistent style.

Reconfiguring interior spaces

Likewise, if you have a reasonably generous budget and a large interior, you can reconfigure and repurpose parts of the house to create new or separate spaces.

Make full use of generous floor space to create separate rooms, such as a media room or study

Barfoot & Thompson senior real estate agent Miro Wang said in an interview: “Generally speaking, if the building’s overall footprint remains unchanged and no major plumbing, electrical or structural changes are made, you can apply to the council to add a record of exempt building work, turning a two-bedroom home into a three-bedroom home or adding a study room. The application process is straightforward, the work is easy to carry out, and the returns will naturally increase.” 

Some older villas have only one bathroom, which can be inconvenient whether you live in the property yourself or rent it out. You could consider converting an easily adapted room, such as the laundry, into a bathroom. This is particularly relevant to older standalone villas, as some older houses have structures that lend themselves well to alterations. However, adding or converting bathrooms is relatively complex, involving insurance, loan approval and council inspections.

 

Improving key details

If your budget is relatively limited and there is little scope to reconfigure or repurpose the house, you can focus on features buyers pay particular attention to. Many buyers, for example, place great importance on the condition and functionality of kitchens and bathrooms.

 

A well-equipped modern kitchen, sufficient cupboard space, sturdy benchtops and brand-new white tableware can all influence a buyer’s offer. So can a bathroom’s waterproofing, warmth and ventilation, and the condition of its bath and basin. These are areas where a small investment can deliver a substantial return, making them worth some thought when renovating or replacing fittings.

You may also often hear real estate agents use the term “kerb appeal”. Small improvements can enhance kerb appeal and make a stronger first impression, which can greatly help the sale price. Some experts believe good kerb appeal can add at least 25% to a home’s value.

There are many clever ways to improve kerb appeal. Tidy up the frontage and repaint the exterior walls. Put the garden and paths in order, remove moss and avoid uneven, muddy or slippery areas wherever possible. Repair fences and hedges where needed and remove weeds. Easy-care greenery in colourful pots can brighten the garden and backyard. Keeping windows sparkling and the house clean is also important. If downpipes or gutters are mouldy or rusty, consider replacing or repairing them.

Are you already eager to start renovating? Take your time. Well-planned additions, extensions, repurposing and detailed improvements can make a home more comfortable, enhance its appeal and increase buyers’ interest and offers. But overusing space can have the opposite effect, and you may not be able to judge accurately which improvements will be most effective.

If you lack renovation experience and your aim is to achieve a good sale price, consider consulting a real estate agent first. As New Zealand’s largest real estate company, Barfoot & Thompson has agents who are all experts in buying and selling homes. Their stronger understanding of market trends and buyers’ preferences can help you spend your money where it matters most.

Note: Some material and examples in this article are sourced from Barfoot & Thompson’s official website and its senior agent Miro Wang.