The best ways to spend $50,000 on your home for return on investment

A windfall of $50,000 wouldn’t be turned down by anyone, but for home owners looking to improve their property, deciding where to best spend that cash is overwhelming. 

On Tuesday night’s episode of The Block, House 4’s Steph and Gian were announced as the winners of the Domain Listings Challenge, adding an additional $50,000 to their budget. 

The prize also included an opportunity to talk to Domain chief of research and economics Dr Nicola Powell and national property editor Alice Stolz about the best ways to spend their new-found cash to increase their chances of the home selling at auction for a price above the others. 

One of the best and most obvious investments is the enhancement of a home’s sustainability, Powell said. 

“We know that having a sustainable home sells quicker and sells for more,” she told the couple on the show.

“We have found that sustainable homes can add up to $125,000 to the value … solar panels are roughly around $15,000 to add in.” 

Agents all over Australia say that solar panels not only add to a property’s overall value in the current market but also increase buyer interest. 

Hayden Owens of Ray White North Lakes says the recent successful sale of 51 Fordington Way, Murrumba Downs in Queensland, was, in part, thanks to its solar panels. 

“Their existence added substantial value to the property, because they addressed the electricity costs for potential buyers, especially given the size of the home and the amenities like the solar-heated pool,” he says. 

“Buyers are often willing to pay more upfront for a home with solar panels, knowing they will save on future electricity expenses.”

Solar panel popularity is also the reason agents often focus on their existence in successful campaigns, says Claudio Cuomo of C + M Residential, whose listing with solar panels at 2 Clyde Court, Oak Park in Victoria, also recently sold.

“When we have homes that offer more energy efficiency than others, it is something our marketing team is directly focusing on and adds to the overall value perception of the given home,” he says. 

“We have many homes in the new-home space that have a focus on sustainability, including better insulation and energy ratings, and buyers in the space are curious to know about energy ratings and are factoring them into their buying decisions.”

But for those who already have solar and are looking for alternatives to improve their home’s appeal to potential buyers, there are many other ways. 

Domain data reveals that, in the 12 months to August, the most regularly searched keyword in all states and territories was “pool”.

In the Northern Territory, it made up 51.7 per cent of all keyword searches. It was 37.3 per cent in Queensland, 35.2 per cent in Western Australia, 19.9 per cent in South Australia and 19.8 per cent in NSW. 

As part of her advice to Steph and Gian, Powell said a good place to focus the rest of their money would be using their outdoor entertaining choices to create interest from all sorts of buyers.

“You want to make sure that you’re pitching to a broader family of age groups, so not designating a certain area in the garden to stick a swing set,” she says.

“The more diverse the buyer pool, hopefully the more competitive the auction will be, and the greater the amount of money you will achieve on your home.”

Domain research estimates that, in the 12 months to June 30, having a pool added around 11.5 per cent in value to a home.

According to hipages, prices of plunge pools like those in the designs of houses 2, 3 and 5 on The Block, can vary depending on a few factors. These include the size, shape and choice of materials used.

For pools between 2.4 and 3.5 metres in size, they say it will likely cost between $13,000 and $15,000 for installation.

Other keywords that are popular in many states and territories are “shed” and “study”.

Vivek Tailor of Richard Matthews Real Estate, who has a listed property with solar panels at 5 Blackwood Street, Belfield, says he also finds modernised turnkey properties popular in the current market.

“Completely renovated or new homes have had much more interest compared to land sales,” he says. “Buyers are also looking to cut down on wait times of new buildings by buying something that they can move straight into.” 

Cuomo says another way to appeal to potential buyers is to show them something different in a home, “whether that be an appealing facade, unique kitchen, huge master bedroom or walk-in robe”. 

As well as energy-efficient homes, Owens says he finds those looking to buy in Queensland are favouring practical design and luxurious features. 

“The rise of remote work has increased the desire for dedicated home-office spaces with good light and an ergonomic design,” he says. 

“Luxurious bathrooms with features like walk-in showers, soaking tubs and heated floors [are popular too].

“Updated kitchens with sleek designs, high-quality countertops and ample storage are also often a focal point for buyers.” 

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